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A PromoTips reader contacted us regarding an ASI PromoGram that promoted Alibaba, a  company that launched a 30 million dollar marketing campaign in the United States to promote their sourcing services in the United States. 

This reader, who is a supplier, was not happy about this.  See below for his e-mail response to ASI. 


The story brings up a question about the strength of the traditional supplier/distributor relationship in today's marketplace.  ASI is reporting the information here, but the very idea that what is actually happening in our industry is being exposed, causes quite a stir. 

Suppliers selling direct is always a hot button issue and conversely, buyers having access to oversees factories also upsets our industry's business model. 

I'm sure many of you receive e-mails these days from factories soliciting your business, bypassing industry suppliers.  Now industry distributors may be eliminated from more significant business opportunities as larger clients can buy direct.  Where does this leave us?

Your comments on this controversial topic are welcomed. You can post them at the end of the article on FPT.com.

Below is the letter sent to ASI from Tim Flynn, CEO of supplier RelKey, in response to the PromoGram story.

Jeff Solomon, MAS, BCF
FPT.com

David Blaise
A Supplier Responds
to ASI PromoGram...
And He's Not Happy!
 
AngryManCartoonPromoGram,

According to your article, the Chinese company Alibaba is taking steps to destroy what ASI has built and you are giving them press?

Investing $30 million in advertising directly to US end users with contacts to Chinese factories and factory prices...Woo hoo!

My goodness, one of us is crazy. According to many in our industry, distributors are already losing projects to Chinese factories. To make matters worse the distributors are losing these clients for good because they think they are being over charged.

When a small business can buy a decorated item for $.99 from a factory in China and it costs a supplier in this industry $.99 plus DOC fees plus decoration plus profit. No US company can complete.
 
Chinese factory direct selling changes the traditional manufacturing production stream of factory to importer/supplier/decorator to distributor to end user and makes it a straight line from end user purchasing from the supplier's Chinese factory and manufacturing cost.

Do I need to spell this problem out for you? Ok, it ends the supplier & distributor from the production stream...your customers, your reason to exist.

Our industry has just changed...may have just ended. Nicely done... supporting this company with accolade and press.  I'll just bet Alibaba is an ASI company too.

Why don't you give them some more free press and while you're at it develop an escape strategy for ASI, you'll need it. Oh, you may want to explain to the industry, your short sightedness.

Tim Flynn, CEO
RelKey...Real Advertising with keys.
Award winning advertising since 2005.
916 985-4479
http://www.relkey.com/

Is this type of service good or bad for the industry? 
We invite your comments at the end of this this article.