David's AW News: Taking on the Mafia

Greetings from Kathmandu, Nepal, where I am taking on the mafia.

Last week was crazy, we kicked off with our 29th Birthday celebrations.. AW is 29 years old. 29 years since I sold my first bottle of Lavender Oil on a Sheffield Street market.

Since then it's been beyond busy in all our warehouses, the elfs are struggling to keep up - but we will find a way.

Anyway I'm on the way home for Christmas (Erm the long way).. On Wednesday I said goodbye to Ringo and Bondhan as they dropped me off at Denpasar airport, I took a Malaysian airways flight to Kuala Lumpur arriving late evening, slept in the most comfortable bed you can imagine at the Sama-Sama airport hotel (short walk and a buggy ride), and early morning checked in for the flight to Kathmandu. Just about the smoothest, trouble free, friendly people, nice food.. best experience ever. Sometimes I love traveling in Asia.  Even as we approached the airport it seemed like the wings were almost touching the magical mountains.

Last week I was telling you about 29 years of AW.. and how I almost gave up on the first day.. if you missed it you can catch up here.

Well, nice Mr Paddam (our gentleman Shipping agent) was kindly waiting at the airport to pick me and my extremely heavy luggage up.  We caught up with things as he drove me to my hotel. Then I managed to drop in and see three of our suppliers with showrooms nearby. One of which came back to my hotel to collect the content of my luggage. Lots of hang tag labels..

Mafia label man.

You see we have an order for 14,200 items of a new product we have been working on for a while. This thing needs a hangtag, attached label and barcode label. Labels in Kathmandu are ridiculously expensive, last time I got into an argument about it. It seems there is one guy who makes all the labels for all our suppliers. I ask Mr Padam if there is anyone else and apparently not really. I went to this guy's print shop and asked why what costs 1.5p in India or Indonesia costs 10p here. It's crazy, making products more expensive than they need to be. The guy is jolly (and shall we say well fed) and smartly dressed.. I sense corruption. And so many implausible excuses why it is so expensive.  I tell him that I think we will get labels made in India and ship them. But he tells me that it is difficult, customs, duty, delays etc.. Anyway the guy gets my Whatsapp number and starts messaging me.. "Sir I want to meet you, I need to talk to you".

In the end I agree and we meet in a coffee shop. "Sir I want all your business and if you deal directly with me I can give you better prices". He pretty much told me he has to pay commission to the suppliers in cash back. I didn't tell him he already makes all our labels (as far as I can see)  but asked how much cheaper it would be if we ordered and paid directly? That hangtag he could do for 7p. Do the maths that's 14,200 x (7p-1.5p) = that's £781 on just one product (excess profit).

So I got those hang tags printed in Bali, and booked a business class flight with lots of luggage allowance - stuffed two suitcases full of labels. Had a very pleasant flight and saved enough money to pay for the flight and hotel on the way. But I still need to fix this issue if our Nepal products are to be competitive. . and that guy keeps messaging me asking who I bought the labels from?

I just found one street on the edge of Tamel with several print shops selling hang tags and labels for manufacturers, off the shelf I can buy North Face and Uniqlo labels, barcodes and everything to make your own fakes..very dodgy.  I asked for a quote but it was even more expensive.

Chinese live streamers.

Last time I was here I noticed them, this time I can hear more Chinese spoken than Nepali or Hindu. One of our suppliers explained the business model to me. These young people come, very cool and trendy looking, they have cameras and lights. They ask what ready stock you have and if they can sell it for you. They often live stream in the doorway or window, so life going on can be seen and noises of Katmandu provide a backdrop. Selling on live streams to China.. packing and labeling orders on the shop floor, and Chinese shipping companies have sprung up all over Thamel just to ship these orders.

Christmas is coming, and I managed to catch this year's big Christmas movie: "Red One".  What a fun movie! Action, fantasy and comedy. Dwayne Johnson plays Santa bodyguard when Santa gets kidnapped. Apparently Santa staff are all mythical creatures who travel the world via hyperloops hidden in the broom cupboards of the world's gift shops. There is a running joke in the movie. Every time they loop around the world and pop out in another gift shop, there is some shopper who turns to her friend and says "I can't believe they have sold out of essential oils!".. so funny. 29 years ago when I started AW I had to explain what essential oils were now they are mainstream.

I don't know if it's related or not but Essential Oil sales (always our top selling range) are up by quite a bump at the moment. Trending again I guess.

Nepal products

Yes last time I was here only a few weeks ago, there were lots of blockages and goods were not getting shipped. I sorted it out and we managed to get things moving.

So those things are arriving (by air) in our warehouses now. I noticed you like the Little Felt Sheep.

Selling fast.. which makes me happy :)

Have a lovely weekend, hope you escape Storm Bert and if it snows it is pretty not painful.

Take care

Namaste! from Nepal.

David