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In 2005 Marel was asked by the owner a major UK football club to help the club reduce costs and improve margins by sourcing all its merchandising, memorabilia and promotional items directly from China. While these items were already probably of Chinese manufacture the reality is that they will have passed through the hands of an importer, distributor and merchandiser prior to getting to the reseller thus considerably inflating the base cost to the club. The club asked if they could, with Marel’s guidance, buy direct or at least through only one pair of hands. Through a series of visits, research and regular contacts Marel has established a supply chain for the club and acts as a mixture of consultant, procurement office, quality control, export agent and primary distributor for the club.
Orders are currently being processed sales margins are expected to increase by over £500,000 in the first year. The company has also obtained outline agreements from other sports clubs and museums to do the same for them. In some areas Marel has formed several organisations into one buying consortium to allow them to benefit from economies of scale in regard to purchasing and shipping.
The benefit to these organisations is that Marel will handle everything for them from advice of product lines and initial research to in-country quality control, packing, despatch, shipping, customs clearance and delivery to site.
Marel is also working on behalf of several UK manufacturers to help them either establish joint-venture operations or subsidiary operations within China or source sub-contract manufacturing or finished goods.
Marel in Shanghai, Zhejiang province – Hangszhou and Jiande Marel’s China base is in Hangzhou and this is manned by fluent English speakers. Our staff there have direct connections with Zhejiang Foreign Services Corporation who are committed to working with Marel to develop collaborative business.
From its offices in Hangzhou Marel can call upon a large number of industry experts to source anything from toys to textiles; handbags to helicopters; radios to babies rattles. Marel can do this quickly and cost effectively and can arrange deals even for moderately small quantities.
The potential for UK enterprises to work with China one way or another is huge. Marel is unique in its connections at the very top of Chinese commerce and civil administration.
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