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    100 Billion Purchase Platform Settled In Foshan &Nbsp; Channel VS Production.

    2010/8/10 18:26:00 55

    Procurement

    Guangdong Foshan's investment platform of $2 billion 800 million and annual volume of 300 billion yuan will be officially launched next month. For many manufacturers in the Pearl River Delta, the large-scale procurement platform is not only a business center, but also a weapon to fight for pricing power in the world market.


    Billion level

    Purchase

    Platform settled in Foshan


    At the seminar on China US flag circulation mode recently held, a new trade logistics project called Pearl River Delta international procurement and regional logistics center was settled in Foshan and is scheduled to start in the first half of next month.

    This giant MAC procurement platform occupies 3500 acres, with a total investment of US $2 billion 800 million.


    According to the author's understanding, the project is located in Beijiao Town, Shunde District, Foshan City, Guangdong Province, 2 kilometers away from Dongping new town of Foshan, 5 kilometers away from Foshan's old urban area.

    After the completion of the exhibition, 30 thousand long-term exhibition sites and a short-term exhibition center with more than 100 million square meters will be provided free of charge. The annual volume of pactions is expected to reach more than 300 billion yuan.

    It is revealed that the first phase of the project will start construction in September 2010 and will be put into operation in September 2011.


    At present, the news has been confirmed by the Guangdong provincial development and Reform Commission.

    It is reported that as early as the beginning of this year, the project has been listed as a key item in Guangdong province.

    Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, said that Foshan had been short of the commercial complex before. The commercial logistics project was located on the 105 National Road near Shunde, Foshan, less than 10 kilometers from the Guangzhou South Railway Station. In fact, it belongs to the periphery of the South Railway Station, and its future market will cover the entire Pearl River Delta and Guangfo core business circle.


    Pearl River Delta

    Manufacture

    The pain of channel


    Why does Guangdong build such a large-scale procurement center? There are people in the industry who believe that the procurement platform for such a large-scale industrial chain is quite urgent for PRD manufacturers.

    After the project is launched, it can win a right to speak for the PRD manufacturing industry in terms of distribution channels and pricing, so as to ease the pricing power created by the PRD.


    "In Jinjiang, the export of a pair of shoes is only two or three dollars, and foreign businessmen can sell dozens of dollars to the US supermarket. After deducting the production cost, the remaining value of the production link is only 5%-10%.

    A plush toy exports only 0.25 dollars, and it can sell US $4 in the US, but we only account for 5%. "

    At yesterday's symposium, members of the Jinjiang chamber of Commerce attended the seminar.


    "In the buyer's market, channels are more important than production."

    Xie Bingzhen, chairman of the strategic decision Committee of China National Flag holding group, said.

    Xiao Xing, general manager of the pportation department of the Sinop Group of central enterprises, also said that because of the fact that many kinds of traditional commodities in China are scattered on the supply chain, this further aggravates the control of the pricing power of enterprises.


    "We hope to build ten" international procurement and regional logistics centers "and several sub centers in China to create a complete commercial chain including raw materials, semi-finished products, finished products, and suppliers, manufacturers and customers.

    As an investor in Foshan's Big Mac project, Xie Bingzhen said they hope to form their own pricing mechanism on the basis of a huge procurement platform.


    China

    Manufacture

    How to turn around


    The author believes that the pain of channel exists not only in the PRD, but in China.

    According to the author's understanding, overseas circulation enterprises have controlled 80% of China's foreign trade orders. The traditional clothing, shoes and building materials made in China have huge price differences at home and abroad.


    The lack of right to speak led to China's manufacturing being severely controlled by people in the international market.

    Taking China's clothing industry as an example, although China is a big exporter of clothing in the world, we do not have enough voice in the international market.

    When the price of raw materials such as cotton increases and the wages of migrant workers rise, the Chinese clothing enterprises can not relieve the pressure of rising costs by raising prices, because once the price increases, it is possible to lose orders in the international market.

    As a result, many garment enterprises can only choose to shut down and stop production.


    In addition, the upstream and downstream trade areas of the supply chain account for a product's 80% value chain, while the production link accounts for only 20%. Therefore, whoever grasps the supply chain and channel resources will grasp the lifeline of the economy.

    If China wants to get more profits and change its current status at the bottom of the value chain and achieve a magnificent turn, China must strive to enter the sales channel and solve the pain of its products.


    The status of the world factory gives us enough products.

    But we can only achieve their value by selling these products.

    In the post World Factory era, we need to establish a purchasing platform with enough influence to develop our own sales channels so that we can turn around in China.

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