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China has become the second largest market globally behind the US for Mustad and has the potential to grow further says the company.
The company‘s sales in the world’s second largest economy have been growing faster than the US, which itself is experiencing growth despite the ongoing trade war, Mustad CEO Arild Aakre told Angling International.
“Although part of the market in China is dominated by low priced product, we still see great potential to grow there, not least in the sportfishing segment where we do see an increased focus on quality.
“We have had a factory in China for more than 20 years so we look at the region as a home market. We have a stable workforce who have been trained by people from our first factory in Norway. I strongly believe business is local and the results delivered by our strong and dedicated team is a good example of that.
“Hooks are often a small part of the total spend for an angler and we have seen an increased focus on quality despite the growth in the number of hook factories in the world – not least the quality programme in our factory which is highly appreciated in the OEM market. It is still hard to copy 192 years of experience in producing hooks.”
Aakre added that the Chinese market is unique. “What sets it apart from the others is, of course, the OEM market in addition to the large freshwater fishing sector. I don’t think you can go to any other country where you find a fishing competition on television all the time.
“Our global presence is a competitive advantage for Mustad. We are selling in more than 122 countries directly. There is no secret that the US is important for us, but big or small, we see all our markets as the same. Serving the world with hooks is what we have done over the last century and we will continue to do that.”
The trade war ignited by US president Donald Trump has caused confusion and presented challenges to businesses worldwide and Aakre said it has affected all of Mustad’s markets in one way or another. “Europe has been most affected, although indirectly,” he said. “Overall tariffs create uncertainty for both consumers and our customers which makes people hold back a bit.
“We have a warehouse in the Dominican Republic which serves the US, meaning we can react quicker to any changes. When tariffs are reduced we can reduce our prices and have inventory available to ship.
“Our customers have seen we have had products available while some of our competitors have been in a tougher spot with longer lead times.
“We want to continue our growth journey but things are taking a little longer. However, we are growing this year despite all the challenges with tariffs and are happy, all things considered.”
