Made in China encounters “hidden rules” and textile and apparel exports struggle to move forward
The channel cost of “Made in China” exports is currently getting higher and higher. The increasing charging requirements for foreign stores have become a major problem for Chinese suppliers and an incentive to explore other channels. The entry fees for American stores are soaring.
Mr. Zhou, a Taiwanese trader, has been engaged in silk trade in mainland China for many years. He sells Chinese silk products to major stores in the United States. His customer list includes both long-established department stores in the United States and large retail stores among Fortune 500 companies. enterprise. Spread business culture and create business value!
Mr. Zhou’s silk trade volume ranks among the top among China’s silk importers and exporters. Every year, more than 20 million U.S. dollars of Chinese silk products are shipped to the United States through Mr. Zhou’s trading company. However, in 2007, Mr. Zhou It decided to give up supplying to several large American stores because the company’s statistics showed that 23% of the annual revenue was “exploited” by American stores.
Lou Mingliang, the owner of a clothing processing company in Zhejiang, also said that his “processing fee for a piece of clothing is 5 US dollars, and 1 US dollar will be returned to the store.” The person revealed that this approach of American stores is not only aimed at China. Products, many manufacturers in developing countries face this problem. Since China has many manufacturing companies, it has been greatly affected.
According to surveys, American stores began to have “hidden rules” for suppliers a few years ago, and now they are even more common.
Chinese manufacturers react passively
The person in charge of a Shenzhen musical instrument manufacturer that encountered “hidden rules” said: “Sometimes it is really unclear what the real reason and purpose of paying the money is.” The person recalled , “A few years ago, American stores would accuse us of paying for the inconsistent colors of the products you provided, but now we are directly asking for payment.”
According to a person who has close contact with an old American store, ” In fact, the direct reason for the store is that the store is operating unfavorably or even losing money, so it is up to the suppliers to share the losses.”
“The clothing counter of a shopping mall in the United States purchased 2,000 outerwear from us, and the colors, styles and fabrics were all customized by them. But if the actual sales volume is less than they expected, in order to make up for the loss, the counter manager will usually charge the supplier to make up for the failure of the work.” Lou Mingliang, the owner of Zhejiang Garment Processing Company revealed, “Chinese suppliers usually In order to earn the meager processing fees for the next quarter, I have to endure the humiliation and pay the money.”
The response of Chinese suppliers is usually passive: “We will now leave room for payment during the price negotiation stage.” The above. A person from the musical instrument manufacturer said, “It’s just that the ‘appetite’ of American stores is different every year, and it is difficult to estimate the amount we need to pay.” Faced with the “hidden rules” of the United States
Most still choose to export
Although supplying American stores Nowadays, costs are rising, and they may unabashedly say that “products may be overstocked, and relevant fees must be paid.” However, Chinese manufacturers with more products on display in foreign sales markets frankly admit that they would rather go to the United States to pay such nonsensical fees. Fees are not willing to be sold domestically, because the “unreasonableness” of foreign sales outlets is “unreasonable in good faith.” Once the fees are paid, the subsequent transactions and sales will be very transparent and fair, while domestically this aspect is much more chaotic, and other problems may arise. BranchesAAFGNHIYIYO
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