China wholesale has seen a new world in the last few years with western consumer goods companies making a foray. This ensures that the affluent Chinese consumers can have goods of their choice. This has brought in a lot of management experience into the China Wholesale.
But this rosy picture is only for a few ostentatious commodities such as jeweleries and imported wines. For other general consumer goods the picture is still bleak. The highly fragmented and heterogeneous traditional channels of China Wholesale account for almost half of the total demand for consumer and durable goods.
The magnitude of expense and resources required to ameliorate those channels have compelled the local companies to choose either breadth or focus.
Recent Happenings in the wholesale sector of China :
The Chinese wholesale has undergone the following changes recently:
- China’s pig production went down recently due to sky rocketing prices of feedstuffs and massive pig culling due to outbreak of the blue-ear disease. This has led to a steep rise in the wholesale price of pork to a order of 74.6 percent in June 2007 as compared to June 2006. this has in fact created a panic among government and consumers alike for a possible spillover effect on inflation. So Chinese Premier Wen Jiabao has urged local governments to boost pig farming.
- NDRC(National Development and Reform Commission) has asked Chinese local pricing authorities to keep a check on food producers/suppliers who intentionally make an attempt to push prices up. This has created a concern especially as China’s inflation rate has crossed the targeted figure of 3 percent.
- According to Liu Pingjun, chief of the National Standardization Management Commission, China will soon take measures to update food safety standards. This will go a long way in improving the farm produce and the processed food products that occupy a substantial share of the China wholesale.
Most of the western consumer goods have not yet penetrated wholly into the country except the largest cities. They are not even enthusiastic about entering those regions due to difficulty in monitoring distribution in those areas. It can be seen conspicuously that huge opportunities exists coupled with economies of scale and competitive advantage once companies cross this hurdle.
Last Updated on : 25th June 2013