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Distribution Adjusts Its Business Model in China

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Jacob
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Re: Any Hope for Price-cutting to stop in china?
Jacob   11/26/2012 2:24:13 AM
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HH, I agree with you, too many competitors can provide a health competition and will make sure about the availability also. Moreover, will eliminates the monopolistic nature of business.

FLYINGSCOT
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cost is king
FLYINGSCOT   11/25/2012 10:23:20 AM
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Apart from the few higher tier companies I reckon that lowest cost will always win in China especially if the local manufacturers are allowed to source their own components. This might change one the supplier market is more consolidated.

mfbertozzi
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Re: A stable supply chain
mfbertozzi   11/25/2012 9:56:54 AM

@Nemos: it is a good question, in my opinion, not easy to provide the right answer; Asia-Pac is a very large region and I belive we need to distinguish the zone we are speaking about. Australia and Japan are acting as quite stable market holding a positive trend. China (the focus of Barbara's article) is market with potentially a tremendous "ramp" as trend, but distributors need to better understand the culture there for tuning their model. Other aspect to consider is the recent news about the local elected Gov.

Nemos
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A stable supply chain
Nemos   11/25/2012 5:20:44 AM
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"More likely, distributors will continue to increase their presence in Asia-Pacific by expanding market share, which means more merger and acquisition."

It looks like the Asian market is still developing ,but  is that mean that we don't have a stable supply chain ? These acquisitions will make the supply chain more stable or not ?  

Hospice_Houngbo
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Re: Any Hope for Price-cutting to stop in china?
Hospice_Houngbo   11/24/2012 9:41:28 AM
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@tech4people,

"Too many Distributors chasing the same business does not sound like a good and sustainable business practice."

Why not? This will allow customers to buy their products at competitive prices. If prices are affordable, it will affect the business positively.

tech4people
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Any Hope for Price-cutting to stop in china?
tech4people   11/23/2012 8:29:33 AM
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Barbara,

Do you see any Hope for all this Price-cutting in China to stop now or are we about to see it get worse as Demand-driven growth falls off in Asia as well?

Too many Distributors chasing the same business does not sound like a good and sustainable business practice.

What other issues/problems did Western Distributors face in China?

Great Blog!

Ashish.



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