Developing China Sales and Distribution Capabilities

China offers opportunities for companies in the market that can assess the landscape of their developmental sales and distribution. Bradley A. Flying Before the commencement of economic reforms in 1978, the PRC controlled China’s distribution channels across the country, including organized distribution centers, wholesale operations, and retail shops. The State Planning Commission released the production requirements and allocated inventory.

As the reforms were progressed, the government had a central plan for many products. Registration of China’s 2001 World Trade Organization (WTO) has made more foreign competition, which led to the elimination of the main end of many local distribution points and central provincial centers. These changes were allowed to save maximum local distribution. In 2004, China has issued laws that divide foreign investment and in other things, allow foreign distributing companies to apply for national wholesale license. Today, foreign organizations can be part of the joint venture process for most wholesale operations.

Sales and distribution networks ready

Large markets have to demand a better distribution system

Sales in China has increased rapidly with increasing privatization of distribution channels. Retail sales increased from just 4.3 million trillion ($ 520 billion) in 2001 to 12.5 trillion (2001 $ 1.8 trillion) in 2001, increasing 12.5 percent per year. According to the figures of the National Bureau of PTC, and according to a PCC official in November 2009, last year, despite the global economic crisis in retail sales, 16.9 percent increased in the retail sector of China. Will increase by 16 percent. 2010. An April 2010 Boston consulting group reported that “increase in middle and agreed class houses will double consumer spending in almost a quarter of China’s cities and countries in the next decade.” Authorities have further speculated that consumers’ companies are looking at this section, around 240 places and more than 400 locations need to be done till today by 70 percent.

Many companies are marketing their brands to meet the growing demand from larger cities. There are at least 1 million of China’s 160 cities. Some companies, such as Adidas-Salmon AG and Naik, Inc., already have the strategy to enter small towns. This development and prediction is that companies in China will need to increase and strengthen logistics capabilities, whether by their own or third party provider. Apart from this, efforts to promote the PRC government’s consolidation will strengthen these trends.

Take the logistics and distribution center step

In recent years, the PRC government has invested a lot in the country’s logistics structure. China has allocated its major 2008 economic stimulation (about $ 1.5 billion [[US $ 219 billion] for the development of the public infrastructure. According to MOFCOM, in 2009, China has 156,000 villages across the country. Stores and 1,100 distribution centers. There are 420,000 rural stores in China covering 75 percent of the cities and 50% of all administrative villages.

During the last decade, China has invested in improving basic infrastructure in the internal cities, focusing on building large logistics and distribution centers on major enterprises. For example, Wahan, Habibi, is becoming the mainstream China’s multi-purpose logistics center. The city is one of China’s largest interior ports, every year; 40 million tones lead to 14 cargos with shipping lines, handle cargo. The National Highways and Railway Lines contacted vonon to other major Chinese cities. In May 2010, the Vahan government announced $ 14.6 billion (2.1 billion dollars) investment in the Vanan Tiani International Airport, which will increase the capacity of the airport cargo to 400,000 tones per year. Many major multi-purpose companies (such as MNCs), Coca-Cola Company and Kimberly Clark Corporation have made the city a major strategic distribution center. Cheng, Sichuan; Chongqing, Jian, Shanki and Jingongong, Hunan, who develop similar centers in other internal cities.

Insight in logistics extension

Logistics in China is a highly dependent industry. Pressure is less effective and low cost product delivery. According to the Global Supply Chain Council, with more than 730,000 registered logistics operators, supply chain capability and material handling often impact material flow.

With a challenge to logistics, a challenge involves the city’s ban on the size of the truck in certain times of the day. Shanghai, like many other major cities, reduces the use of trucks within days to reduce traffic root. It is complex in distribution and optimization of batch shipment.


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