02/12: What to expect in 2011

In 2010, we saw a flat tea sales, and the business had been slow. If we compare what we did at Chinese eBay (Taobao), it's a shame!

Come to 2011, the tea price is going to spring off like a rabbit.

Two factors come into the pay. 1. The over-stock situation since 2007 had been ceased to non-existence, and the reduced production in 2010 made the case worse. Supply and demand, you know the drill. 2. What we see as an over-valued Chinese currency outside China is actually a devalued money in China - it may buy more foreign currency/goods but worths less domestically, a double jeopardy.

The evidence: The prices for Menghai Tea Factory's products are on a steady rise. Oolong teas and green teas are sold at double the price. Many 'cheap' teas have been disappeared at Taobao, the largest eCommerce tea shop in the world.

One more thing, if the weather in Yunnan does not hold well in the coming Spring, we are in deep sh*t.

I don't like this one bit, but what else we could do?

Comments made

No comments yet

Add comment