JAPANESE GOODS

Dominion, Volume 27, Issue 189, 9 May 1934, Page 10

JAPANESE GOODS

New Zealand Market Invaded DRAPERS’ APPREHENSION The invasion of the New Zealand market by cheap foreign goods, particularly Japanese, is viewed with apprehension by the drapery and footwear trade in this country, according to “The New Zealand Draper,” which gives a detailed report in its May issue of discussion by members of the Federation of Drapers, Clothiers, aud Boot Retailers, at their recent conference in Wellington. "The invasion of our markets hy cheap foreign goods is a serious matter for British and local manufacturers, and as it affects them and their employees it must react indirectly upon retail trade,” said the report. “In addition there is the direct effect upon the value of the turnover of those who, in self-defence, are compelled to stock tlie cheap lines. It is one of tlie difficult problems of to-day in all civilised countries.” Upon the subject of the importation of cheap Japanese goods the federation had conferred with representatives of British manufacturers’ agents and offered to support the representations of that body to the Tariff Commission later on if it was desired to do so. Becoming Serious. Mr. Horace Smith, a delegate to the conference, said the matter was becoming very serious. “As profits are based on turnover and Japanese goods reduce turnover, it is obvious that the remedy, if one buys Japanese goods, is to go for big profits to compensate for the fall in turnover. The trend at present seems to be to sell these very cheap lines on a fine margin of profit and even cut them to death. Japan is, of course, making many lines to-day in all sections of the trade, and the question is: What attitude should the trade adopt to even up with this stuff? If all the goods we sell come to the same level it will not be long before all traders are in very serious trouble and must eventually go out of business. . . . With low prices much more work is done and very small turnover results.” Mr. Smith explained that his object in bringing the subject before the trade was "to impress upon them the ultimate result of handling these lines. From conversation it seems that very few have given the thought necessary to realise the position. What is the remedy? To sell this stuff at fair market value, as if we sell it on a' cost basis we increase our trade with Japan, reduce our turnover, and eliminate goods from England and other countries. The bugbear, of course, Is that the other man cuts the price and &> sets the standard. It is quite possible thfjt some of those other men are here to-day, and I appeal to the trade to try and arrange things differently.” Mr. D. S. Patrick said he would be very sorry to see in New Zealand what he bad recently seen in Sydney, where nearly all the shops were cutting these Japanese lines. Rayons were now sold in Sydney at 4jd., fuji silk at 6d., marocain at 1/3, satin at 9d. The whole range of Japanese goods was being sold at approximately cost. It was a serious matter, and the trade should be alive to the danger. Mr.' O. Ogilvie said he thought the danger was being exaggerated. His own firm was buying less Japanese stuff than ever before. In many lines Great Britain could beat Japan in value for money. From another angle altogether the question of trading with Japan was a national one. Mr. J. S. Milne thought the cure for the trouble evolved naturally in the course of business. The cheap goods filled the need for a time, but as trade conditions generally improved the better class of goods would again come into demand. His experience had been that while they had had to trade in cheap goods for a time to meet special circumstances existing, they were not now doing so to nearly the same extent, and he fancied the general experience would be the same as that of his own firm. Only at Beginning. Mr. W. Simin said he was not of the • opinion that the matter would right itself. Japan was only at the beginning of her development, and would probably extend the range of manufactures very considerably. One thing which they might undertake to do as traders was to create a British sentiment in buying by judicious advertising and propaganda, but he was not hopeful that any other action would be successful. Mr. J. R. Rendell suggested that it might go out from the conference by way of a recommendation to members (bat it was highly undesirable to use cheap Japanese lines as a choppingblock for competition. The Japanese people were capable craftsmen, and what Japan was doing now was only a fraction of what she would do later on. He moved: “That the federation recommend that members as far as possible refrain from making a practice of using Japanese lines for competitive cut price purposes.” The motion was carried unanimously.