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China Imports Hurt Flag Industry letter from Annin

China Imports Hurt Flag Industry

Volume 6 Issue 1 Spring-Summer 2019
By Robert R. Caggiano
Annin VP of Sales

Hi Kerry and Madison,

Just in case this information has not crossed your desk, I wanted to send it directly to you. I think it would make a great story for Brave Magazine.

The flag industry, like many other industries, face ever changing issues. We have been fortunate up to this time to be able to say that US flag imports are not an issue. However times have changed and with the many dot.com platforms, imported US flags have now become an issue. I honestly believe it is the greatest threat to the industry at this time.

Annin's president, Carter Beard, cites 5.9 million in imports. I think it is significantly more. At the National Independent Flag Dealers Association meeting, the Flag Manufacturers Association of America spoke about the imports. They put the figure at 20 to 25 million dealer cost. One dealer said he thought it was higher.

  • From Carter Beard, October 2018:
  • The U.S. Flag Industry Needs Your Help!
  • All those who are passionate about providing customers with American-made U.S. flags face a threat. Currently online companies, like Amazon, sell improperly labeled imported U.S. Flags. The Textile & Wool Act requires that the label be attached to the flag until it reaches the end user. This label MUST state Country of Origin and material content.
  • There are 3 major importers on Amazon that sell imported U.S. flags without a label attached. This is against the law. Join me and take action with Operation Amazon: "BUY - RETURN - REVIEW" by Veteran's Day. Our goal is that Amazon will halt sales of improperly labeled imported flags.

China's selling price is about 25-33% of our costs. Of course, the quality of China made flags is substandard, but when consumers are price driven they are sometimes willing to sacrifice quality. I think in the end, a China-made, poor quality flag will market share to its American-made, high-quality counterpart, but only if the public is educated in their choices. We need to carry on the fight!

Thanks,

Bob
Robert R. Caggiano
VP of Sales - Commerical Sales Division
Annin


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