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The Role of Wholesale Distributors in the Chinese Economy

By Jesus David Cano Romano
December 4, 2017
Wholesale Distributors


Chinese economy, as we are all aware of, is highly export-centric. The manufacturing hub that China has become has made it heavily reliant on operations related to getting the manufactured goods delivered to the clients or customers. This has led to the goods distribution industry to receive a boost. In this blog, you will gain insights on the role of wholesale distributors in Chinese economy.

Acquisitions

Being a manufacturing economy, China had to find a way to get the finished goods delivered to store shelves. This is where wholesale distributors come in – they acquire finished goods from the manufacturer, and take these goods to retail stores or directly to the consumers.

Storage

Some wholesalers with highly functional setup and elaborate operations have warehouses where they store goods due for shipping at future dates. A good example is the growing ecommerce in China, for which wholesalers are required to maintain stock for online shoppers. Maintaining stock for ecommerce demands have now become a central role for wholesalers in the Chinese economy. Even where retailers are concerned, wholesalers maintain stock until purchased by them.

Marketing

It would seem a little out of place to think that wholesalers have a role in marketing as well, however, sometimes when there is a launch of a new brand, marketing skills are required to convince retailers to make room in their stores for an unfamiliar brand. China is a nation with many indigenous brands and products, thus it becomes imperative that wholesalers play their part in market propagation for the brand.

Logistics

As discussed earlier, wholesalers need to get the goods delivered to the end party, making it important for them to have a sound logistics system in place. The Chinese economy benefits by having timely shipping and delivery.