Last week I was discussing with a friend in Hong Kong. He is in contact with many companies all over China’s coast, due to the nature of his job. He told me about a new trend that looks like this:
Small Chinese company operates a few retail shops – then becomes wholesaler (buys from local factories and from importers, and sells to retail shops) – then starts importing products from outside China, in addition to its wholesale operations.
And it means they have to hire English-speaking employees who are familiar with international trade. Obviously they have to come from exporting companies (trading firms and factories).
This importing business is more promising than the export game, where everyone complains about declining margins. It is not hard to recruit smart office girls looking for new challenges.
Has anybody else on the ground noticed this trend?
My friend also find this trend. He is the wholesaler of a famous Chinese brand. He said since the government approved four trillion yuan ($586 billion) stimulus package, people become rich and do have much money to buy expensleive things and luxuries. You can find that from the latest sales trend of BMW, Mercedes Benz, porche, etc.In the past, they export the best thing to US or EU, but now they sell it domesticlly.Some Chinese companies are even beginning to look outside China for goods to sell.
Thanks Lisa for your feedback!
That’s true,we noticed that many factories whom we worked with before for exporting business are turning to domestic market,they’re reluctant to work with exporting companies as the volume of order shrinks and margins declines.
Yes, Thanks Rita!