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    American Store Access Fees Are Rising, And China's Manufacturing Exports Are Worsening.

    2007/9/17 0:00:00 10508

    The cost of "made in China" export channels has been increasing. The increasing demand for overseas stores has become a major problem for Chinese suppliers and the incentives to explore other channels. The United States sells a lot of fees. Mr. Taiwan trading trader Zhou has been engaged in silk trade in mainland China for many years. He sold Chinese silk products to American stores. His customer list includes both the old department stores in the United States and the large retail enterprises in the world's top 500 enterprises. Mr. Zhou's silk trade volume ranks among the top of China's silk importers and exporters. Every year, about 20000000 dollars of Chinese silk products are shipped to the United States through Mr. Zhou's trading company. But in 2007, Mr. Zhou decided to give up the supply of several large American stores, because the company's statistics showed that 23% of the annual income was taken away by American stores. "Because these stores have no reason to ask suppliers to pay fees and pay hundreds of thousands of dollars for no reason." Mr. Zhou complained to the lower reaches of the Chinese supplier that "orders for the store will no longer be received next year." The second quarter earnings of the US store recently dropped by more than 50% over the same period last year. Many traders like Mr. Zhou will look for domestic processing enterprises to pass on this expenditure. Galanz, a well-known electric appliance company in China, has produced about 25% of the market of its microwave oven products in the United States, but Galanz executives told reporters that they also suffered such treatment. "After the execution of the contract, we should pay the amount of money to the store, and the reply they give directly is that the product will be overloaded, so that we can share the losses." The company executives told reporters, "in fact, their purchase contract has been completed, this is very unreasonable request. But we will still pay some money to maintain "friendly" relations. Zhejiang, a clothing processing enterprise owner, Ming Liang also said, "a garment processing fee is 5 dollars, there will be 1 dollars will be returned to the store." According to the source, the practice of American stores is not only for Chinese products, but also for many developing countries. Because of the large number of manufacturing enterprises in China, the impact is enormous. According to the survey, reporters learned that a few years ago, American stores began to have "hidden rules" for suppliers, and now it is more common. "Selling at a loss," the director of the Shenzhen musical instrument factory, who encountered a "hidden rule", said: "sometimes it is not clear what the real reason and purpose of paying the money are." The personage recalls, "a few years ago, the American store would also say that the color of the product you supplied is not correct, so that we can pay the money, and now is directly asking for money." According to a close contact with an old brand store in the United States, "the most direct reason for selling is that the stores are running bad or even losing money, allowing suppliers to share losses." The second quarter earnings of the US store, which the person referred to, has dropped by more than 50% over the same period last year. "The clothing counters in a shopping mall in the United States have purchased 2000 coats from us. The colors, styles and fabrics are all set by them. But if the actual sales volume is less than they expect, the counter manager will usually charge the supplier to compensate for the loss of work in order to make up for the losses." Zhejiang garment processing enterprise boss Lou Ming Liang told reporters. "Chinese suppliers usually have to bear the burden of making money in order to earn meager processing fees in the next quarter." China's suppliers are usually passive: "we will now set aside room for paying fees at the price level." The above musical instrument manufacturer said, "only American stores have different appetites every year. The money we need to pay is hard to predict." Although the cost of supplying us stores is now rising, it seems that in the view of Lou Ming Liang, orders for foreign orders are more secure. In the view of Lou Ming Liang, the trouble with domestic sales is that "according to the" hidden rules "of Chinese stores, people who need to buy food, send money and wash sauna are not necessarily able to bring back money, rather than the integrity of American stores. As an electrical appliance manufacturer, the cost of entering the domestic market is also huge. Especially in recent years, with the development of home appliance chain giants, the contradiction between supply and demand has become more and more intense. Data show that the admission fees, booth fees and other various charges accounted for 8%~10% of household appliance manufacturers' sales, and a large number of household appliances manufacturers' funds were shelved in hypermarkets. "To reduce the impact of stores on manufacturers, Galanz has started building its own stores in two or three tier cities in the country and exploring the establishment of a boutique in France," Galanz senior told reporters. It is understood that Galanz has invested 400 million yuan in the project. Huang Jiangming, an associate professor of business school at Renmin University, believes that the problem facing most manufacturing enterprises is that before building their own channels, they need to take the lead in building brand awareness. This part of the investment is huge. Many enterprises have abandoned it when they think of this level.
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