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Source : http://www.bettermanagement.com
Activity:
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last activity : 07 06 2010 20:18:04 +0000
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It is said that a successful person is a one, Who is present at the right place at right time.
The same is for goods. For a good to generate sales it should be available at the time when the consumer needs it and also at the place which is easily accessible to him otherwise, you will loose.
Reaching consumers through modern retailers is a somewhat familiar process to Western manufacturers, yet even the more standardized hypermarkets such as Carrefour are not quite the same as they are in other economies. "Dealing with the large hypermarkets is more similar than different, but even the hypermarkets have adapted their store formats for China," says Hemerling. Carrefour, for instance, has created large "wet markets" in their China stores to cater to the Chinese preference for fresh produce and fish.
The second way goods get to customers is through a complex, multi-tier distribution system that is still emerging from years of state control. Depending on the category, says Hemerling, 30% to 60% of the market is still served by complex tiers of wholesalers, particularly in the smaller, less advanced markets.
Building a Sales OrganizationBy all accounts, creating a sales and distribution network in today's China isn't easy. "It's definitely more chaotic, it's definitely more difficult to deal with, and you need to have more people on the ground because of it," says Z. John Zhang, a marketing professor at Wharton.
One of the biggest challenges is simply mapping the flow of goods through these distribution networks, according to Hemerling. In the past, Chinese manufacturers would often send goods to a distributor with no real idea which customers those goods eventually reached. For a foreign company, Hemerling says, understanding where those goods are flowing is critical because different distribution channels often reach different customer segments.
This tells you about the sales and distribution network in China. Hope was of some use for you.
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