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hi this is Anita the global trade gal
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one of the things that's recently come
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out in the United States and as a world
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in general as you know through the
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tariffs which the United States has put
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on or as many people call the Trump
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tariffs have um you know been instituted
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and all of this that's the upheaval
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that's been going on in the world's
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global supply chain is the fact that
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Asia is the powerhouse of the global
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supply chain i want to talk today a
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little bit about why that is and maybe
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explore some reasons as to why and
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things that I myself have seen you know
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and why I believe that Asia still will
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continue to be and that for people that
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are businessto business you know um
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buyers why Asia is still a great place
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or still a great place to be able to buy
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products and you know despite even with
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all of the tariffs and the other things
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that are happening and this entire
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shakeup that's happening you know in the
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world itself I believe that it's still a
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great place to be able to manufacture
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and purchase products asia is still the
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manufacturing despite these shifts in
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the global supply chain Asia still
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continues to remain the heart of
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manufacturing especially in my industry
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of home decor manufacturing you know
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China continues to dominate output and
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infrastructure you while Vietnam has
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emerged as a formidable player and of
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course other countries have too along
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the way but you know together these
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account for a significant share of
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global exports you know and things such
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as you know at least in my industry
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would be lamps and lighting
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indooroutdoor furniture decorative
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accessories you know all of those things
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you know Vietnam and and and China
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continue to produce a lot and especially
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lately a lot of it is from um from
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Vietnam and one of the reasons is is you
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skill used to be you know years ago in
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in places like North Carolina uh
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Michigan the US produced a lot of
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furniture and at that time there were a
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lot of skilled workers in those areas
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that understood furniture production if
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you were going today to try to set up a
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factory you'd probably be hardressed to
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to find people that really understand
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that type of production why because
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they've moved on to other jobs or they
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retired and maybe you know people just
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simply are not interested years ago in
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China when I first started in this
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industry we used to do a lot of hand
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painting we hand painted a lot of voses
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we hand painted boxes we hand painted
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mirrors we did a lot of intricate hand
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painting you know the factories um that
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we I worked with had teams of hand
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painters that were phenomenal that could
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basically take very very complicated
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designs and they could hand paint them
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and they could hand paint them at a very
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cheap price at a very good price and
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with a lot of detail then suddenly the
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whole look changed nobody wanted hand
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painting anymore and so all those hand
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painting workers moved on and they left
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and they went somewhere else and today
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in China to find somebody you can hand
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paint like that is actually very very
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expensive it costs a lot of money why
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because the workers are no longer in
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place there and they they just you just
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don't have the pool of workers that you
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once had workers moved on they're doing
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other things but they're not in a
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factory anymore hand painting like they
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once were so that's why in Asia it's
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still the backbone of the manufacturing
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whether of most manufacturing sectors
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why because you have the workers there
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in place you have technology in place
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and you can be able to get the output
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require asia also has scalability
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without sacrificing design in other
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words that they're equipped to be able
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to handle large production runs with
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shorter lead times they um have flexible
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minimum order quantities for growing
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brands consistent quality you know
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against you know batches in other words
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if I place an order today and place an
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order in six months for the same item my
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quality would be the same you know the
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wood would be the same the finish would
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be the same things would be very much
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the same and you know so there's a
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consistency that they have throughout it
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because they're able to consistently get
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the products or the things that they
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need so that of course is something
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which is very important for somebody
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especially if you're looking to build a
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brand you know you want to be able to
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produce something today and then if you
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need to buy it again you want to be able
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to buy the same thing again and not
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change it or change the design asia does
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a lot of what's called OEM which is you
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know your your own customers designed or
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they do a lot of of customization you
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know almost all factories that I know
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specialize in OEM or ODM which means
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that you give them the design and they
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produce it they don't give you the
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design but you give them the design
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especially in places like you know China
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and Vietnam there's a lot of factories
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that are just set up with that that's
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all that they do they just do all OEM
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work they basically do all work where
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the customers give them design they
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understand how to develop the products
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they know how to you know go from the
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product development to the manufacturing
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stage now you might think some of you
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who are listening who may not understand
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this but actually something like that is
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extremely complicated to do it's not
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easy to be able to develop a product
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it's not easy to be able to get a
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product from the paper to an actual
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product to production it takes skill and
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it takes people who understand how to be
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able to do this asia has this great mix
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between traditional craft and modern
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technique that you don't find in a lot
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of other places you know you find you
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know these villages that are able to
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some of the traditional crafts but at
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the same time they're able to use some
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modern equipment you know this means
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that you know things like you know some
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of the handiccraft and some of the
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skills that you can use these highly
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skilled individuals who understand how
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to be able to do this they're able to to
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give competitive pricing with with
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strong margins so that's one of the main
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things that you know has gone on is the
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pricing is competitive you know it could
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be because it's lower labor cost but
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it's not only just lower labor costs it
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can also be the economies of scale it
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can be the raw material sourcing and it
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can be established logistics chain you
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know a logistic supply chain so you know
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it's not just as simple as oh they earn
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less than us and that's why they're able
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to produce it cheaper you know the
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reality of it is that that is not the
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only reason why there are many other
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reasons why you know Asia is able to
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produce things that you know people
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basically require the price they require
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they can respond to market trends
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they've adapt to you know different
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types of market trends you know they
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have mood boards they look at trends
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they look at you know the production
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they prototyping all of these things
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they can be able to re um react to it
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they have an end toend production
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ecosystem they have raw material
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suppliers right nearby component
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suppliers packaging and printing vendors
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they have quality assurance and
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compliance services and freight and
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logistics providers they have it all
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right there and nearby so that they're
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able to you know be able to draw upon
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these people and and you know they come
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into the factory they see they can see
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what they're doing you can get the
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cartons printed the other things you
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don't have to send it to another you
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know far away location it can be you
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know pretty close by that you can be
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able to check it out you know that's
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another reason why sustainability is
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growing in focus you know there's more
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you know factories are looking at things
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for sustainability um you know factories
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in Vietnam are looking at you know FSE
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need their certified wood uh water-based
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finishes recycled uh metals i know
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there's been some talk recently in the
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United States where you know some of the
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government people um made a comment or
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something about like well would you
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rather pay more money for a toy made in
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America which is safe than a toy that
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has lead paint in it and I thought there
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I don't know of any manufacturers in
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Asia that are producing toys that are
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using lead paint in fact you know you
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could not even be able to ship that into
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the United States today because of the
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requirements and the testing and
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everything else that's required asian
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manufacturers generally are very much on
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to what is required to be able to
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produce and to ship something and to
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have something be produced to be able to
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be sold into the United States you know
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in Asia we have something which is
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called carbs which carbs is is a type of
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you know MDF plywood that has no
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formalahhide to it everything we produce
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here is is carbs compliant wood and we
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have to put a sticker on it we are not
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shipping product that has falahhide in
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it you know so if you're if you're in
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the United States in certain states
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maybe some people are there but we over
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here in Asia we cannot so most Asian
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manufacturers are very much clued in to
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the technology which is required for the
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places they are selling to they look at
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long-term strategic partnerships and
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that they really want to have a
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long-term strategic partnership with the
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people they're working with you know
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these are many reasons why you know
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businessto business buyers should
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continue to look to Asia and why Asia is
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such an important part of this
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i've written a blog post on this why B2B
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buyers should look to Asia for scalable
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customizable home decor and we'll put a
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link in the description below for you to
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be able to check this out if you're
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interested more in this but if you're
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looking for businessto business
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production or you know B2B Asia is the
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place to go on so many levels for so
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many different types of products i can't
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say it's for every product and it's for
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every type of industry but for so many
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products at least for my industry which
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is home furnishing and home decor it is
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a very important and essential place to
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manufacturing thank you so much for
10:22
listening we really do appreciate you
10:24
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