Deep Reason Why Ebags UK Close

Last week when I was in UK visiting customer as usual, lots of people in the handbag wholesale / trade industry are talking about Ebags UK closing down liquidation thing.

Lots of them are considering buying the surplus stock of Ebags UK, or the customer data base of Ebags UK. And some of them do search in the google or through industry contacts, to see if these are available in the market sale.

Apart from this, lots of them are wondering why Ebags UK close down, as in their memory Ebags UK were well established. Most of people declare this to the economic reception, but I think there some deeper reasons are behind, which I am going to state below.

If we look at the supply chain of bags sold by Ebags UK:

Manufactures (possibly in China) -----Brand companies like Kipling-----Ebags UK-----End Users

You will find this is a long chain while everybody (especially middle man with big overhead) is taking many parts of profits. This leads to the big markup in pirce. Normally as my 20 years experience in handbags industry, a leather handbags factory price is around 40-50 usd, when it is sold by Ebags UK, it goes up to 150-200 usd, which means times 3-4.

Let us look at the supply chain of Ebags UK’s competitors, like what we find out these days lots of manufacturers (some of them are from China or Hong Kong) are selling bags on Ebay, directly to end users with very low price, here is what their supply chain is like:

Manufacture (possibly in China)-----End User

Even if there is high express fee, but still profitable.

So to conclude, economy crisis is only the trigger , unreasonable and over-long supply chain is the deep reason why Ebags UK close down and liquidation.

Bill Daniel, from
(Senior observer, years experience in handbag manufacture industry )
[2008/12/28 01:33] | leather handbags | Trackbacks(1) | Comments(0)
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