Natural Disaster

Only late, I get to fully understand about the "external forces" that we once studied on text book, on economic and finance courses.

Government here, suddenly shouted a new rule (to be carried out June 1, 2007), called it 3C, for our range of products. Of course, sword always come in 2 edge - advantage is, all the tikus pasar malam players will be swamped dead; disadvantage is, we need to entertain their tests, fly their auditors to all our kilangs in the world to review the process, and each SKU of our products need to be tested, so there are fixed cost and variable cost, and we have total 300 ++ sku this year -- all these need $$$$. Best of all, there is no clear rules as yet now.

Our country manager, termed this as "natural disaster", something like 911, create damages in no time, and can't be avoided.

Our company is lobbying in U.S. now. Don't know got use or not. But well.. government seems kinda irrational to come out of this rule. Just like they implemented the VAT in 1992 (I think..) within 1 month time. Gou Li!

Of course, this kinda "natural disaster" will not hurt us at the end, they will only hurt the local consumer of our products. We estimated that each of our products might need to price increase by at least 10%. Gou li!

We also laughing at our own joke -- perhaps in no time, we have to change our strategy to become really FMCG style - mass-selling 1 type of products, just different in volume or packaging. Simple, and make money! haha.

Sigh..