Local Distributors Take a Bigger Slice of the Pie in China

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Rich Krajewski
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Supply Network Guru
I understand
Rich Krajewski   8/16/2014 4:51:03 PM
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"times are good in China."

Great article, and I understand your point about increasing prosperity there and agree, except--and it's not me, it's my mind that keeps nagging me about these things, as Columbo used to say--I keep thinking about the conditions in those workers' dormitories I've read about, and the long hours.

Image result for columbo

What's also ironic is the way the suppliers locate near the buyers, if I read that correctly. It seems as if, in the US, we do the opposite: the buyers go halfway around the world to the suppliers.

SP
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Re: I understand
SP   8/18/2014 12:03:31 AM
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Chinese are known to support business locally so that their economy gets the maximum advantage. They are also big national supporter. So its not a big surprise if the percentage of local demand increased. And believe me it would be a Government's decision.

t.alex
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it's true
t.alex   8/18/2014 1:15:07 AM
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that China distributors play an important role in global market. They do give good customer service in term of logitstics or products consultant. However when it comes to urgency, i still prefer local distributor over than going thousand miles away to purchase a product.

Jacob
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Sourcing from local hubs
Jacob   8/19/2014 7:10:29 AM
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"The majority of OEMs producing electronics in China have traditionally relied on foreign distributors for their component needs, but that could soon change due to a number of factors. According to Global Sources, China's electronics manufacturers are expected to purchase 26 percent more components from local distributors in 2014 than they did in 2013"

Bruce, you may be right because local manufacturing units/hubs are becomes stronger due to various factors. Moreover if they are meeting international standards and quality; sourcing from local hubs becomes more economical.

Jacob
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Re: I understand
Jacob   8/19/2014 7:13:42 AM
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"Chinese are known to support business locally so that their economy gets the maximum advantage. They are also big national supporter. So its not a big surprise if the percentage of local demand increased. And believe me it would be a Government's decision."

SP, in china local government is encouraging/promoting such small and medium scale industries with various incentives and financial aids for promoting business. The aim is to encourage more peoples in to this segment for creating employment and financial stability within them.



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