Seylany Discovers Sharp Decline in Sri Lankan Cinnamon Exports to Pakistan, Market Share Lost to China, Nepal

Seylany Discovers Sharp Decline in Sri Lankan Cinnamon Exports to Pakistan, Market Share Lost to China, Nepal

Wednesday, 16th of October, 2024

Ceylon Cinnamon. A spice that is truly globally renowned for it's taste and healthiness, is reportedly sourced mainly from the island of Sri Lanka. Sri Lanka, the island that was called Serendib, Taprobani, and once also, Ceylon. One of Sri Lanka's top exporting destinations for Ceylon Cinnamon in 2023 was Mexico, with over 8 million kilograms of "Cinnamon and cinnamon tree flowers" being exported, valued at 30,792,612,443.00 LKR. And while Mexico was number #1 in cinnamon export destinations, Pakistan amongst 87 destinations, came in 87th place, with a mere 1kg of export, valued at just 2,221.00 LKR. A contrast so tall.

In fact, trade data over the past few years shows something strange yet interesting: Sri Lanka’s cinnamon exports to Pakistan have been steadily "evaporating". In 2019, Sri Lanka shipped 174,956 kg of cinnamon to Pakistan. But fast forward to 2023, and that number dropped to just 1 kg valued at 2,221 LKR.

However, in the same year (2023), Pakistan imported 87,500 kg of cinnamon from China and 5,000 kg from Nepal, according to data from Pakistan’s Trade Information Portal (TIPP). Even more puzzling, the Chinese shipments were listed as Cinnamomum zeylanicum Blume, which is the same species as Sri Lanka’s well-known Ceylon Cinnamon.

Unlike the breakdown and categorisation of Ceylon Cinnamon exports provided via Seylany (with data sourced from Sri Lanka's Export Development Board), Pakistan's Trade Information Portal doesn't appear to show other categories of Cinnamon like quillings, chips, featherings, etc. Or if it did, perhaps whether it's all listed under the same category is still to be determined.

But what is crucial in this discovery, is that Pakistan's imports of Sri Lanka's cinnamon, have clearly been steadily evaporating. Take a look:

  • 2019: 174,956 kg valued at 13.6 million LKR
  • 2020: 143,353 kg valued at 15.1 million LKR
  • 2021: 10,110 kg valued at 1.1 million LKR
  • 2022: 20 kg valued at 127,499 LKR
  • 2023: 1 kg valued at 2,221 LKR (SLEDB via Seylany)

VS some data (we believe is still incomplete) from Pakistan’s Trade Information Portal (TIPP) shows significant imports of cinnamon from other China and Nepal in 2023:

  • 87,500 kg from China, valued at 161,100 USD
  • 5,000 kg from Nepal, valued at 8,200 USD

Interestingly, these imports displayed on TIPP are labeled as Cinnamomum zeylanicum Blume, the same species Sri Lanka is known for. So how China has captured market share that traditionally belonged to Sri Lanka?

Given Pakistan’s deep-rooted use of cinnamon in both culinary and medicinal applications, there’s no question about the demand. The fact that China and Nepal are filling this demand indicates that the market is active and competitive. However, Sri Lanka’s sharp decline from exporting 143,353 kg in 2020 to 1 kg in 2023 just perhaps reflects an opportunity waiting to be captured.

Another factor that could be very important to consider, is whether or not Pakistan's imports of Cinnamomum zeylanicum Blume or commonly referred to as Ceylon Cinnamon, is actually mislabeled. China is known for it's famed Cinnamon Cassia or Cinnamomum cassia, or also referred to as Chinese Cassia.

And not everyone knows the difference between the two. So one question that truly must be investigated is, if Pakistan is importing Ceylon Cinnamon from China, and almost nothing from Sri Lanka (traditionally known to be the home of Ceylon Cinnamon), then a very probable cause could be that the imports are being mislabeled. - Yet this is a theory that has still got to be properly investigated.

Pakistan has a history of using cinnamon in food and beverages, meaning the demand is definitely there. And if China and Nepal can fill that demand, there’s no reason why Sri Lanka shouldn’t be able to as well.

There’s work to be done here. Whether it be in streamlining logistics, improving market outreach, or getting a better read on what Pakistan’s buyers want, the key question that should be asked today is: How can Sri Lanka reposition itself to reclaim its place in Pakistan's market?

How much should you spend on advertising?

How much should you spend on advertising?

Use the free calculator below to help you decide upon an intelligent marketing plan and budget, and what your potential Return On Ad Spend (ROAS) will look like.

Sunday, 4th of August, 2024

Advertising budgets are important. But how much is too much when it comes to ad spend. And how much should you expect to make as revenue at the end of a campaign, or month. That's what we're about to hopefully discover.

1. Advertising Budget Calculator

Start with your Expected Advertising Budget (per Month) slide-control below.


2. The Basket Value

When it comes to important KPIs, the Basket Value is a crucial metric that tells us the average purchase value of a customer segment (per shopping session).

That means, let's say in general we have 100 customers buying goods. Each customer's "Basket Value" is the amount they spend on each visit/session of shopping.

Now when we segment that, the customers would be grouped by specific attributes. It could be based on their ages, or whether they're male or female, their locations, or their interests, and so on.

So why in the world is Basket Value so important?!

Here's an example of a chart that shows the average Basket Value of customers in particular B2B customer segments (Retail Resellers, Hotels, Hospitals), by month.

3. The Time Constraint

Let's put it like this, time is a limited constraint. That means, within a specific time, you have expenses, you have revenue and profits, and you have the number of customers you can serve.

If you focus on customers with a low Basket Value, you would need to be able to sell to several of those customers within a single month to meet your target, or sell to ONE single customer who's Basket Value meets that same target.

To give you more context, let's say you are selling headphones, and part of your cost of sale (expenses) is the marketing and advertising cost. Right?

Now, if it costs you 500 USD to advertise on a specific platform, and you get 100 customers from that campaign, your Customer Acquisition Cost is 5 USD per customer.

If the average customer's basket value was 15 USD, you only made 10 USD from that sale.

But if 1 customer purchased 2000 pieces of that 1 headphone, the benefits would ideally be far greater.

The cost of advertising can be very expensive. So strategic use of your advertising expenditure is required.

 

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4. Defining Business Goals - What do we want to achieve

Because the cost of advertising can be very expensive, important to define business goals in order to understand and have a clear picture of what we want to achieve.

This could be long term planning, with the focus on building the brand's marketshare and not looking towards short term profit, or this could be a direct cost vs profit marketing campaign where we would want to make every penny spent on advertising to translate directly to our profit center.

For small and medium sized business, the latter choice might be a better strategy, but at the same time, working on the branding as well along the way.

buyer-persona-cost-effective-customer-targeting

5. Customer Identification - Who do we want to sell to

So why, is this important..?

When you identify your ideal customer, or better referred to as your Buyer Persona, you're able to better target in your ad campaigns to that specific Buyer Persona.

This means, that instead of targeting 2000 people who wouldn't bat an eye at what you're offering, you're targeting a very specific Buyer Persona that would have a much higher probability of converting to a customer.

That would then typically translate to saving ad expenditure.

The example infographic here is for a company that would potentially be a furniture brand or supplier.

6. Platforms - Where to advertise

Once you've identified your ideal customer, the next part of the game is reaching out to them, or targeting them.

And there are a thousand and one ways/channels to do that. Some ways include Linkedin Business Pages, SupplierValley Q&As, SupplierValley Blogs, Alibaba Company Listings, SupplierValley Buzzword System, SupplierValley Targeted Publishing and so on.

While there's a lot of choice and room for growth, for small or medium businesses with smaller teams, it's always best to focus on a few channels, and really put maximum effort into those platforms. Or delegate the responsibility to others while you focus on other areas.

The cost of advertising, and how much you have to spend, can vary greatly.

And by targeting the right customer segments, in the right places, you can potentially save money by not throwing it all on a large segment of customers with low basket values, and unrefined buyer personae.

pexels-leeloothefirst-7598018

Have we helped you calculate your ad budget? Do you have any suggestions, feedback or need help/advice?
Leave a comment below, or simply get in touch with us. We'd love to hear your thoughts.

You can make a difference.

One Art in Choosing the Perfect Bed Sheet: Insights from a Luxury Hotels Supplier

One Art in Choosing the Perfect Bed Sheet: Insights from a Luxury Hotels Supplier

Tuesday, 18th of June, 2024

The everyday consumer's common buying habit when it comes to bed sheets, would perhaps be simply walking into a department store, picking a beautiful printed sheet, by just touching and feeling the material.

But how do hotels pick sheets for guests? Are sheets in hotels special? What makes a hotel bed sheet different?

These are all questions that we hope to shed light on in and endeavour to help you find some of the best sheets on the market.

When choosing a bed sheet a number of technical factors come into play, that can alter the look, feel, and experience of the sleeper.

For now, we'll look at just two:

  1. Cotton vs Polyester-Cotton (Polycotton)
  2. Thread Counts

So what's the difference between Cotton and Polycotton, and why does it matter?

Well, to put it simply, a 100% cotton bed sheet is cooler than a polyester-cotton mixed bed sheet.

That means, in a bedroom setting that is not quite cool, a 100% cotton bed sheet would likely be a better option to purchase, than a polyester-cotton bed sheet.

However that said, a polyester-cotton bed sheet may appear neater to the eye, and potentially make the bed and bedding look more higher in quality.

Hotels invest in both options. They both have a balance of feel vs look, and from the right supplier or brand, can both be exceptional pieces of bedding.

So then what's thread count? And why does that matter?

Thread Count or commonly abbreviated as TC, is the number of threads woven into a single square inch of fabric.

To give it perspective, a fabric with a higher TC would be thicker and heavier than a fabric that is lower in thread count.

Now, does that mean a fabric that is higher in TC is essentially better in quality?

Absolutely not. A 300 TC sheet from a good manufacturer could be a better choice than a 1000 TC sheet from a not so good manufacturer,

In other words, when trying to measure a fabric's comfort, it's softness, or breathability, thread count would not be measure that can tell you this.

So a fabric's quality of threads, what they're made of and so on, matter, than simply the number of threads in a square inch.

So what should you choose?

"Gentelle Hotel Supplies Co Ltd" - One of the top hotel suppliers for bed and bath linens in Saudi Arabia, supplies hotels with sheets in different configurations including the following:

  1. 300 TC 100% Cotton Sheet
  2. 250 TC Polyester Cotton Sheet

For hotel procurement teams, buying offices, hospitality CEOs, or anyone with a requirement for premium linens, these are two options that can likewise be considered. Yet, again, the quality of threads do matter, and reaching out to Gentelle's team for expert advise, could be starting point for obtaining some hotel linen buying insights, even if you're not planning on making any immediate purchases.

B2B Procurement Negotiation – Finding the Best Prices for B2B Buyers: And how negotiation, sampling, and quality play pivotal roles.

B2B Procurement Negotiation – Finding the Best Prices for B2B Buyers: And how negotiation, sampling, and quality play pivotal roles.

negotiating-best-price-b2b

Wednesday, 18th of October, 2023

A paramount requirement of businesses in the B2B space, is the sourcing of quality products and components at competitive prices. In a marketplace as competitive as today's, optimizing costs is part of maintaining a profitable operation. Of course, price isn't the only consideration for B2B (business-to-business) buyers.

And part of a good procurement process is the sampling of the product, and quality that translate to finding the best value for a investment / bulk purchase. In this piece, we're going to look at how B2B buyers can find excellent prices, while emphasizing on the quality of the product.

Skip to sections:

  1. Research & Negotiation
  2. Bulk Purchasing and Long-term Contracts
  3. Leveraging Technology & Platforms
  4. Sampling
  5. Quality Assuarance

A critical factor in product procurement is understanding what you're buying. A product on a technical level has a host of specifications that perhaps very few people would actually understand.

For example, the bed linens that hoteliers buy have specifications such as thread-count, sateen weave, percale weave, striped/non-striped, sanforisation, mercerisation, and so on. The thread-count on a fabric, tells the buyer the number of threads per inch on a fabric. To the non-expert, and to many people this translates as a higher quality. However this is not always the case.

Rather, a 300 thread-count sheet that has been sanforised, mercerised, and is 100% cotton, woven with the sateen method of weaving would give the sheet a more luxurious look and be cooler, than a sheet that is sanforised, mercerised and is 100% cotton but of the percale weave. Therefore, technical specifications in products can play a pivotal role for decision makers.

This means, prior to purchasing any product at just about any price, the intelligent procurement specialist should perhaps begin with expert product and market research, and skilled negotiation.

We can therefore initiate the break down in purchasing process as follows:

Research & Negotiation

Securing excellent prices like we said always should start with understanding the product. Some verticals of research would therefore include:

  • Market Research - Understand market conditions, industry standards, product/service technicalities, and the pricing ranges and structures. Identify at least 4 potential suppliers and understand their offerings, preferably with the help of an expert procurement specialist or product consultant for said product or service. - Hire an expert by posting a request here.
  • Supplier Assessment - Evaluate potential suppliers based on their reputation, their track record and credibility, and how long they've been in the field manufacturing or providing that said product or service. Make a list of reliable suppliers and understand who you're working with. Honesty and integrity do matter.
  • Request Quotes & Samples - Part and parcel of the procurement process is requesting quotes. Alongside quotes, it is vital to study multiple samples from the various vendors. Products with the same apparent technical specifications from two different vendors may still appear different to the touch and feel. Further, if it is a product such as textiles, it's a good idea to run it through a multiple tests, including a wash test which will help understand shrinkage, dye-run-off, shedding and so on. Also, be clear about the requirements, quantities, and other specifications.
  • Comparison - Compare the quotes you receive, not just on the factors of price, samples, and product specifications, but also on the terms and conditions laid in the deal, the delivery timelines, payment structures, conditions for the return of goods, and other related factors that can affect your decisions post-purchase.
  • Negotiation - This is a skill that people may sometimes mistake for begging for a price reduction. There's always room for negotiating price reductions. But a skillful negotiator will also be focused on obtaining favourable terms on the long run. Pricing in B2B purchasing is a critical factor. But a long term strategic trading partner is likewise intelligent. For example, a company based in KSA looking to source product may consider 2 manufacturers. One in Saudi Arabia, and one in China. The product from China may be less pricier with the same specifications. And the product from Saudi Arabia may be costlier. However, if the company in KSA is looking to bring added value to consumers in KSA, the KSA product can claim "Made in Saudi Arabia" to consumers, thereby adding value to a consumer's purchase. So negotiation isn't always about price.

Bulk Purchasing and Long-Term Contracts

B2B buyers can often secure a better deal with a good pricing structure and payment plan by making a commitment to purchasing a large quantity, or securing a long-term contract. When trying to find the best price for a product, suppliers will likely want to offer discounts and other incentives like private labeling and so on, to buyers who can commit to providing consistent business. For a supplier to better understand the buyer's capability, it's a good idea for a procurement specialist to have a suitable web presence for the represented company, that gives the supplier the confidence of a good buyer. This approach can lead to substantial cost savings, and better terms.

Leverage Technology and Platforms

Leveraging technology can significantly aid B2B buyers in finding the best prices and products. From utilizing e-procurement tools, online marketplaces, and procurement software to streamline your sourcing process, to compare prices, and identify cost-effective suppliers. These platforms can provide valuable tools for conversation and communication, supplier performance metrics and insights that aid decision making. Here on SupplierValley, one of our flagship tools like the Buyer Requests feature, allows Merchants to respond directly to Buyer Requests, opening the door to direct-to-business B2B communication and transparency.

On the other hand, the simple Job Board feature on SupplierValley allows Buyers to find procurement specialists and experts in particular fields. Whether it be procurement specialists based in China to assist foreign businesses with procurement and product sourcing, or finding experts in textile manufacturing to aid in procurement decision making. The Job Board allows Buyers to simply spell out their requirements for people with specific skillsets and experience in particular fields.

Sampling

We spoke a bit about Requesting Quotes and Sampling above in the Research & Negotiation phase. To expand on that, sampling can be a very critical aspect to some if not all B2B purchasing decision makers. Procurement specialists especially when dealing with physical products, will need to see if the product or service aligns well from function to finish. Some of the top reasons sampling is an essential part of the procurement process is,

  • To ensure the quality of product, as sampling allows purchasing departments to verify and validate the quality and consistency of products before committing to a large purchase. This helps to prevent or minimize costly mistakes down the line.
  • An intelligent decision made means that waste can be lessened or avoided. When large quantities of subpar products don't enter the supply chain, this can reduce product call-backs or returns to a huge level, which can sometimes otherwise be costly and time-consuming to rectify.
  • Sampling can help ensure compatibility and functionality of products for businesses looking to integrate them into their existing processes or machinery.
  • And in a product development process, sampling helps a business to test integrations in prototypes, to make necessary improvements, and give feedback to the suppliers for a modification and adjustment requirements.

Quality Assurance

Quality is perhaps a non-negotiable factor in B2B transactions. Buyers cannot afford to compromise on the quality of products or services they purchase. Although certain scenarios would require the purchase of sub par products/services depending on the use case. Here's why quality is crucial:

  • Reputation and Trust - Consistently delivering quality products or services helps build trust and a strong reputation, both of which are essential part of the fabric in a good B2B relationship.
  • Risk Mitigation - Quality assurance measures can mitigate potential risks associated with product defects, service disruptions, and other costly issues that could later come to light.
  • Customer Satisfaction - Without a doubt, quality directly impacts the end-customer. Satisfied customers are likely to become loyal, repeat buyers. Even if the price of product is slightly more expensive, the relationship built is an important factor in making strategic purchase decisions.
  • Cost Savings - High-quality products can often have longer lifespans and may require fewer repairs or replacements, resulting in cost savings over time.

So there you have it. Finding the best prices for B2B buyers requires understanding supplier, product, negotiation and leveraging technology. Yet, the quest for lowering costs mustn't overshadow the crucial factor of product sampling and quality. Start by adding a Buyer Request here, or finding verified Merchants / Suppliers here, then request prices, samples, and other technical details to ensure compatibility and functionality. You can also look for procurement specialist or a product consultant / expert in a particular field to help you with your purchasing decisions.

Ready to get started? Submit a Buyer Request.

What are great ways to generate quality B2B leads?

What are great ways to generate quality B2B leads?

Saturday, 29th of February, 2020

generate-b2b-leads

3 major phases. For every B2B business. And pretty much many businesses.

Engineer Awareness

Effect Leads

Engage Prospectives

  1. Engineer Awareness.
  2. Effect Leads.
  3. Engage Prospective.

Engineer Awareness

The first is of course to engineer awareness in circles related to the business.

Awareness. Awareness. Awareness. If nobody knows your business, there’s no reason for you to get sales.

Here’s a long list of places/techniques for generating awareness:

  • List the business & products in the several global B2B trading portals
      • Alibaba.com
      • SupplierValley.com
      • GlobalSources.com
      • Import-Express.com
      • QualityTrade.com
      • TradeFord.com
      • TradeKey.com
      • EC21.com
      • ExportHub.com
      • eWorldTrade.com
      • ecplaza.net
  • Open company/brand social profiles across the internet
    • Facebook.com
    • Twitter.com
    • LinkedIn.com
    • Medium.com (For publishing articles related to your industry)
    • Tumblr.com (For publishing articles related to your industry)
  • Launch your company/brand website (designed for the target customer)
    • Get a professional agency to help you out: LeapDifferent.com - Professional, helpful, and very good at what they do. (And reasonably priced.)
    • Find a freelance web developer instead on PeoplePerHour.com, Freelancer.com, UpWork.com...
  • Publish articles on your website or websites like SupplierValley, or sites related to your industry (to help you get found on search engines)
    • You can hire professional copywriters to write for you, or you can also work with professional writers like ContentfulCopy.com.
  • Invest in strategically placing advertisements of your website/company/brand in popular websites and blogs.
  • Invest in good Search Engine Optimization (SEO)
  • Exhibit your products in B2B exhibitions.
  • Add CTAs (Call-to-actions) on the articles that is published for your company. A live example is this post you're reading right now, that's referring you to some helpful solutions. - With actionable CTAs.

Engineering Awareness also involves describing your business and it's products clearly. The keywords and phrases that people popularly search for, is what should be included in your product name and descriptions, and there's techniques for finding out what people search for.

Effect Leads

Every website, every customer facing mechanism needs to make it very easy for customers to reach out, or take action.

Imagine a website without a telephone number, an email address, a contact form, and any other contact details. Imagine if all these elements exist, but are hidden away somewhere on the website that the customer isn't going to bother searching for.

To effect leads, you need effective customer portals. Effective websites, effective advertisements, effective call-to-actions...

"90% of consumers want to message directly with businesses (think SMS, WhatsApp, Messenger), but 81% say it's too difficult." - SendGrid.com

Engage Prospectives

This is up to your sales & communication skills. When the prospective customers filter through the awareness stage, through leads stage, and becoming prospective customers, it's pretty much up to you to ensure that they receive a good experience.

Using a CRM (Customer Relationship Management) tool is meant to greatly help you keep track of leads and prospectives, follow up on them regularly, and finally close a sale.

With WhatsApp being one of the most popular messaging apps in the world, one the easiest ways for many prospective customers to reach out to you, is via WhatsApp. Don't forget to reach out to a developer, and get them to code and implement a WhatsApp mechanism for your website, or product page. Try LeapDifferent.com.

 

..while this isn't a complete blueprint of the digital business world, hopefully, this can help you get started generating quality B2B leads. Not only for B2B businesses, but also for B2C, and P2P businesses.

Engineer Awareness. Effect Leads. Engage Prospectives.