The Foreign Wholesale Electronics Companies Make Efforts for Localization
In fact, the foreign wholesale electronics companies have been looking for the balance and change between standardization and localization in recent years. The foreign giants have poor operating conditions because of many causes. But the biggest problem is that standardization is more than localization. For lack of localization, it reflects on the localization of the products and the localization of the service. In addition, it also includes the consuming habit localization and store operation localization.
This is a foreign wholesale electronics company which enters China as the first one. With the flexible localization strategies, it achieved rapid expansion. After entering China, it established five procurement centers for the area. For the similar commodities, they implemented the centralized procurement. But at the same time, it gives each store a certain procurement authority according to local cultural characteristics. This business way brought some benefits to this company in early days. But with the expansion of the store, the decentralized management results in purchase cost disadvantage. And it is revealed gradually. As the bad influence of the business way, the new CEO began its measurements. Then this business way was ended up in China wholesale market. It is replaced by the new business way the city purchase center.
The first two foreign wholesale electronics companies are different for us. The first one is just like a guerrilla in China and the second is just like a team army. For the early Chinese market environment, the guerrilla seems to be more suitable for life. With the growth of the market, the large-scale operation will eventually be an advantage. Different from the first one, the second one chooses to reduce the costs by establishing strong logistics system and large-scale centralized purchase. Then it can get the profits. However, because the logistics cost cannot be reduced in the short term, so the profits will be fewer for the company. Then due to the business performance, the second company starts to be similar with the first one.
Therefore, when the first company starts its measurements, the second one also follows it. In March, the second company officially launched region system. The director of each region has their own rights. “In early days, as wholesale electronics, we used central procurement, but there are some problems such as non-timely order and stock shortage. The sales were affected by them. In addition, the Chinese market is very complex. The markets of the different regions have big difference. It makes the company passive for its business in competition.” The manager said.
When the foreign wholesale electronics companies make their efforts for localization in order to get the Chinese market, some good China local companies are hot for their foreign market business. And the website http://www.zrhwholesale.com is one of the best examples for people. It can provide the foreigners with top quality electronic products. Of course, all of the products are wholesale ones, so they are very cheap for buyers. And if you want to buy the best electronic products in China, the place is the best and the first choice for you.
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