It's Hard To Catch A Cool Tree Against A Big Tree? Supplier's Heartbreaking WAL-MART

"In the past, we thought that selling clothing in WAL-MART would make money if it was large enough.

WAL-MART not only controlled the end of circulation, but also gradually controlled the producers.

"I will not sign a new supply contract with WAL-MART."

In March 8th, when WAL-MART signed a new contract with suppliers, Hu could not conceal his disappointment.

Lao Hu is the earliest clothing of WAL-MART.

In 2009, WAL-MART changed the mode of procurement distribution, subcontracted the whole logistics distribution to the third party logistics, and the return of each store was operated by the third party logistics.

What he could not imagine was that the change of mode allowed him to pay more than a few hundred thousand yuan of funds.

"The contract stipulates that the other party will charge 6.5% of the goods sold after the sale of the goods, and also stipulates that 6.5% of the refund fee should be charged for goods sold in WAL-MART stores."

Moreover, "if the goods that cannot be sold, if they can not be collected within the specified time period, they will also add 2% of the purchase cost of the returned goods.

Previously, the company commissioned a logistics company to return, so there was not much expenditure on the overdue cost of 2%, but after the third party logistics, due to communication problems, overdue expenses increased substantially.

Bullshit, "what is more serious is that if it extends to more than fifty days, WAL-MART can decide on its own return products."

And he paid hundreds of thousands of dollars, because the overdue failed to recover the return.

Lao Hu is not the only supplier disappointed with WAL-MART.

Hainan Si Dan o Trade Co., Ltd. is an old supplier of WAL-MART. In 2007, the scarlet trousers were still the largest players in WAL-MART men's clothing area. But by March this year, WAL-MART had hardly been able to find this brand again.

A director of the company said that he and

The person in charge also believes that there is another reason why the company is no longer working with WAL-MART. It is that WAL-MART is opening up too fast. "If you deliver the goods to them, they need you to have a special person to manage it. Where do you have so many people? Even if you invite a person over there, how do you know if he is going to work?"

The person in charge of Suzhou coer Garments Co., Ltd. also said, "before making such a supermarket, including WAL-MART, the profit is not high.

We need someone to manage it. If there is no special person, we can't cooperate with the supermarket very well.

We may gradually withdraw cooperation with supermarkets because the manpower and material resources on the supermarket side are very large. "

And there are more than a few suppliers who do not plan to cooperate with WAL-MART again.

According to the reporter's understanding of clothing suppliers in WAL-MART supermarkets in Beijing, Shanghai and Shenzhen, it has been found that the list of old suppliers of WAL-MART has changed a lot since the beginning of the year. About 80% of them are not sold in WAL-MART. At that time, they sent their clothes to about seventy brands of WAL-MART, leaving only thirteen of them this year.

Instead, there are fifty new businesses.

In addition to Li Ning Co, most of them belong to obscure SMEs.

There are also many "big cards" in the figures left behind. Shanghai opened up costumes and Hangzhou banana costumes were once the top 100 Chinese clothing enterprises.

The view of "Lao Hu people" may be an important reason for these suppliers to choose to leave.

Yang Qian, director of the Beijing business cadre management institute and director of the China supplier research center, said that from a supermarket perspective, replacing a supplier with a large supermarket like WAL-MART is a normal thing, but from the supplier's point of view, this is indeed a very painful matter.

"We should know more about the reasons for the replacement of suppliers, and see what factors are at work, so as to protect the legitimate rights and interests of suppliers."

A garment supplier in Hebei thinks that it is not normal for WAL-MART to replace suppliers in such a large area, because if a supplier sells money in supermarkets, he will not leave.

Luo Jian, a merchandiser of WAL-MART clothing supplier and Shenzhen shunxianghe commerce and Trade Co., Ltd. also said, "in the past, we thought that sales of clothing in WAL-MART would make money if it was large enough.

After working with WAL-MART, it was discovered that no money was made at all.

Dan Zhengguo, lawyer of Shandong Yuding law firm, said that over the past four years, WAL-MART has seen a large area of replacement suppliers. It shows that WAL-MART has not only controlled the end of circulation, but also gradually controlled the producers.

The head of the trade company mentioned above is highly consistent with his point of view: "the position of the supplier and WAL-MART is seriously unequal, and there is often no way to talk about it every year during negotiations," and the company is no longer a supermarket channel.

WAL-MART is...

?

WAL-MART is a big tree.

1, on Thanksgiving Day in 2003, WAL-MART's daily sales amounted to US $1 billion 520 million, more than the sum of GDP in 36 countries.

2, in the 21 states of the United States, the number of employees wearing red T-shirts exceeds that of the US Army.

3, the annual growth of WAL-MART is equivalent to a new one - you can choose one of the following companies -- Dow Chemical, Pepsi Cola, Microsoft or Lockheed Martin.

4, if you set up a company with funds lost by WAL-MART every year for theft, it can be ranked among the top one thousand of Fortune magazine.

5, McKinsey Co said that the US economy grew more than 1/8 in 1995-1999 years, thanks to WAL-MART.

6, if WAL-MART is a country, it is China's fifth largest trading nation.

Is WAL-MART a big bad guy?

1, the profit margin of the original product in the franchised store can reach 10% or higher. Once entering WAL-MART, this number will drop sharply.

2, in other customers' hands, it can achieve 10-15% profit, only 5% in WAL-MART, and gross profit.

In early 3 and early 2010, WAL-MART proposed to expand the proportion of direct purchase, reduce the intermediate links such as suppliers or third party procurement, and save the cost of 5-15% in the whole supply chain of the whole world.

4, in China, after the integration of WAL-MART, all suppliers' products are required to pay barcode again, a bar code and a store charge five hundred yuan, and a supplier has to pay hundreds of thousands of yuan on average.

Other fees include: five hundred yuan / store / bar code for color pages, 1500 yuan / store / bar code for the freezer, and one thousand yuan / store / bar code for new products, and the cost of importing new products must be the lowest price in the country, otherwise it will not be imported.