zhuwh
User
Jun 18, 2011, 2:50 AM
Post #1 of 1
(513 views)
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For example, a company's products enter the domestic supermarkets, not only required to pay entry fees, but also to pay various guarantees. Now, supermarkets in China's large cities, the vast majority belongs to Sino-Foreign joint ventures or foreign-invested enterprises, they get by setting the trading threshold to restrict some enterprise products to sale in local. Enterprises want to enter their sales channels must pay sales income cost of 15% to 20%, which for manufacturing enterprise who just started is an impossible burden to bear.
Moreover, some local governments in order to support local businesses also to set some artificial trade barriers, prohibiting foreign enterprise products sale in local. Many companies in order to expand sales channels had to make an issue on sales methods and transaction costs, according to pay discount and commission directly or indirectly to ensure companies can form sell network in domestic.
In recent years, China strengthen supervision of the retail market, prohibit large retail companies charging entry fees. Therefore, some comprehensive large-scale retail enterprises adopt the way that rent out counter or manufacturing enterprises bring their own marketers to shift the sales burden to manufacturing enterprises. In such a trade pattern, some manufacturers have to give up the domestic market to seek foreign trade export channels. Enterprise products sale in foreign countries although increasing transportation costs, they can significantly reduce transaction costs, so the price of those companies selling products in foreign countries is cheaper than at home.
Third, the financial environment is a key reason that led the price of Made in China is cheaper in foreign than in domestic. Trade can be divided into two aspects of transport and financial settlement. Because China lacks a good credit environment and phenomenon of unable to settle on time or deadbeat is widespread china electronics wholesale), therefore engaging in trade in China is facing a huge credit risk (china manufacturers). Banks in order to reduce the risk of their own, often calculate in terms of capital settlement of their own, which resulted in a lot of payment should be paid is withheld for the reason of financial companies. Engaged in international trade exist a huge credit risk but because of all countries universal adherence to trade agreements and business practices, so the financial risk is lower than domestic trade. From the view of industrial chain, the trade enterprises are mostly playing the processing role, so in the export trade is almost no credit risk. From: wholesale electronics
China wholesale
cell phone accessories wholesale
http://www.goodscool.net/china-wholesale-electronics/Phone-Accessories/
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