JAPANESE GOODS

Greymouth Evening Star, 11 May 1934, Page 12

JAPANESE GOODS

NEW ZEALAND MARKET INVADED The invasion of the New Zealand market by cheap foreign goods, particularly Japanese, is viewed with apprehension by the drapery and lootwear trade in (his country, according to “The New Zealand Draper, which gives a. detailed report, iii its May issue of discussion by members of the Federation of Drapers, Clothiers, and Boot Retailers, at thcii leeent conference in Wellington. “The invasion of our markets by cheap foreign goods is a. serious matter for British and local manufacturers, and as its affects them and their employees it must react indirectly upon retail trade,” said the repoit. “In addition there is the direct effect upon the value of the turnover oi. those who, in self-defence, are compelled to stock the cheap lines. It is one of the 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. Mr Horace Smith, a delegate to tne 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 mar- . ket 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 so sets the standard. It is quite possible that some of those other men i are here to-day, and I appeal to the trade to try and arrange things differently.” The impossibility of keeping cheap Japanese sports shoes out of the New Zealand market as conditions now obtain was pointed out by Mr H. Pittendrigh. He said his firm had endeav-. oured to keep them out, but had found that impossible. When the firm began to deal in them they had adopted judicious advertising and propaganda in favour of British goods throughout their selling organisation, but in spite of that they had found that 65 per cent, of the trade was done in Japanese cheap lines and 35 per cent, in bettei* quality but more expensive British cheap lines. If it had not been for their advertising and selling policy the business would have been 90 per cent. Japanese. Mr D. S. Patrick said he would be very sorry to see in New Zealand what he had 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 C. 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 I value for money. From another angle I altogether the question of trading with ' Japan was a national one. Mr J. S. Milne thought the cure for I the trouble evolved naturally in the J course of business. The cheap goods filled the need for a time, but as trade J conditions generally improved the bettor 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 ex- 1 tent, and he fancied the general ex- I perience would be the same as that , of his own firm. Mr W. Simm said he was not of < the opinion that the matter would right itself. Japan was only at the U beginning of hex- development, and z would probably extend the range of | manufactures very considerably. One thing which they might undertake to fi do as traders was to create a British l| sentiment in buying by judicious ad- ? vertising and propaganda, but he was |1 not hopeful that any other action H would be successful. $

Mr J. R. Rendell suggested that it might go out from the conference by way of a recommendation to members that it was highly undesirable to use cheap Japanese lines as a chop-ping-block for competition. The Japanese people were capable craftsmen, ana 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 curried unanimously.