Chinese Consumer Electronics Distribution Channels

Chinese Consumer Electronics Distribution Channels

Navigating China’s Complex Distribution Systems
China’s enormous population and rapid economic growth has mesmerized many consumer-goods manufacturers. However, while market opportunities abound, the road ahead for foreign retailers is a bumpy one because of remnants from China’s socialist background. Its deeply embedded culture, economic conditions, fragmented markets, poor sales channel access, rigid government, and inadequate market conditions are making China a tough – but not impossible – nut to crack. The rules of the game have changed, and China’s economy is now more market-oriented. While the government may be aggressive in its attempts to achieve economic growth, companies are also doing their part, transforming processes and exploring new areas to improve the effectiveness of sales and distribution channels. However, for foreign companies to establish a larger footprint in China, it takes more than merely these efforts. This study navigates the complex Chinese distribution systems and provides an anatomy of the market environment and its evolution. It also unravels the shortcomings of the traditional distribution system, influencing factors, and new processes.
Section 1. BACKGROUND
Section 2. THE CHINESE MARKET
2.1 Economic Overview
2.2 Meandering Through the Market, Sales and Distribution Labyrinth
2.2.1 New Rules of the Game
2.2.2 The Distribution Evolution
2.2.3 Wholesale Drop-Shipping
2.3 Influencing Factors in Chinese Distribution Channels
2.3.1 Culture
2.3.2 Economic Conditions
2.3.3 Internet and Technology
2.3.4 Online Buyers
2.3.5 Online Sellers
2.3.6 Government
2.3.7 Defining Bona Fide
2.4 Shortcomings
2.4.1 Traditional Distribution Structure
2.4.2 Imported Goods
2.4.3 Fragmented Distribution Structure
2.4.4 China Is Still Not Fully Ready for Non-Store Retailing
2.4.5 Social and Cultural
2.4.6 Uniquely China
2.4.7 Online Shoppers’ Profile
Section 3. VERDICT
Tables
Number of Internet Users, China: Dec 2005 to June 2007
Internet Access Methods, China: Dec 2005 to Dec 2006
Percentage of Internet Online Shoppers, China: 2006 to 2012
C2C Market, China: 2006 to 2012
Retail Sales of Electrical Appliances and CE
Possession of Private Vehicles, China Statistical Yearbook 2006
Percentage of Households with Private Vehicles, China Statistical Yearbook 2006
Internet Users, Segregated by Age, China: Dec 2005 to Dec 2006