Key Takeaways:
- Zulay Kitchen, led by Aaron Cordovez, has sold kitchen appliances on Amazon for 10 years.
- The company is moving production from China to India, Mexico, and other markets.
- Tariffs on Chinese goods are rising, pushing businesses to seek alternatives.
- The transition will take at least a year or two to complete.
What’s Happening? For a decade, Aaron Cordovez has been selling kitchen appliances on Amazon through his company, Zulay Kitchen. But now, he’s facing a big challenge. Most of his products are made in China, and tariffs on Chinese goods are going up.
Cordovez says Zulay Kitchen is moving as fast as it can to shift its production to countries like India and Mexico. While tariffs in these countries are increasing, they are still much lower than those on products from China. This change won’t happen overnight—it could take a year or two to complete.
Why Is This Happening? Tariffs are taxes placed on goods imported from other countries. The U.S. government has been increasing tariffs on Chinese products, making them more expensive for businesses like Zulay Kitchen.
“Tariffs have made it tough for us to keep our prices competitive,” Cordovez explained. “We need to find new ways to keep our products affordable for our customers.”
The Move to New Markets Zulay Kitchen is not the only company moving production out of China. Many businesses are looking for new countries to manufacture their goods. Places like India, Mexico, and Southeast Asia are becoming popular alternatives.
“These countries offer lower tariffs and more stable trade relationships,” Cordovez said. “It’s a big change, but it’s necessary for our business to grow.”
The Process of Shifting Production Moving production to new countries is no easy task. It takes time to find reliable factories, set up supply chains, and ensure quality standards are met.
“We’re working as fast as we can to make this transition,” Cordovez said. “But it’s a complicated process that requires careful planning and coordination.”
Zulay Kitchen is also looking into other markets beyond India and Mexico. The company wants to diversify its production to avoid relying on a single country.
The Impact on Other Businesses Zulay Kitchen’s situation is not unique. Many businesses that rely on Chinese manufacturing are feeling the strain of rising tariffs.
“This is a wake-up call for all of us,” Cordovez said. “We need to be proactive in finding solutions to stay competitive in the market.”
Other companies are also exploring new manufacturing locations. Some are even considering bringing production back