An introduction to the four main channels through which US companies import from China

According to the pattern of the import of goods from China in the Midwest of the United States, and from the perspective of American companies importing from China, this paper conducts a preliminary analysis on the selection channels of American companies importing from China.

There are four main ways for US companies to import from China:

The first category: General import and export companies: in the traditional sense, mostly small or family-owned enterprises, the scale of 1-5 people, the characteristics of their trade opportunities It is to fill in the gaps and seek the remaining small profits in the cracks. Most of them obtain free information through non-profit organizations such as foreign economic and commercial institutions, and obtain customer resources and open up channels by participating in the Canton Fair, Toy Fair, Houseware Fair and Hardware Fair.

The second category: Huashang Import and Export Company: This is an industry extended from the restaurant industry and the sundries industry. The customers it serves are mainly Chinese and Chinese restaurants. The products it deals are mostly Chinese food, dry goods, seasonings, and daily groceries. , In recent years, the business of Huashang Import and Export Company has also expanded to crafts, Chinese furniture, bookstores and other industries. These companies are the result of the painstaking operation of overseas Chinese over the years. They are characterized by small scale and mostly partnership operations. Friendship in hometown laid the foundation for customer communication for its initial business development.

The third category: US and medium-sized consumer goods manufacturers, trade through agents by large and medium-sized wholesale retailers: This is one of the main forms of Chinese exports to the US. These enterprises have a certain strength, and their business focus is concentrated in the United States. They do not set up overseas import companies themselves, but complete purchases from China through Hong Kong, Macau, Taiwan trading companies and US east-west port trading companies. According to the requirements of American customers, these trading companies make use of their own design technology advantages and customer resources connected with thousands of manufacturers all over our country to conduct processing trade (designated brand, incoming samples, incoming materials, packaging design) and product quality supervision. , goods delivery, bank checkout and other service advantages, it has opened an export channel for various Chinese enterprises. Most of the American companies that purchase goods in this way are medium-sized manufacturers, traders, and wholesalers with a certain scale, as well as giant retail chains such as Walgreens and ACE Tools. The characteristics of American enterprises are that they use the international trade operation experience of Hong Kong, Macao and Taiwan enterprises and enterprises on both sides of the United States, the continuous tracking of the US market demand, and the overseas convenient and flexible financial service system to complete imports from China. In addition, OEM (original commissioned processing and manufacturing), ODM (original commissioned design and manufacturing) supplier trade has become a trade method for some Chinese machinery manufacturing industries.

Category 4: Purchasing companies set up by large chain retail and manufacturing companies in China: As China's entry into the WTO lowers restrictions on foreign trade business enterprises, this channel will become one of the mainstream ways of exporting Chinese products. one. They set up a procurement center in China in a certain form, and determine the procurement plan in China according to the cross-border chain sales arrangement. The characteristics of this type of channel are: the order quantity is large and relatively stable, but the price is low, and the style and packaging of the goods are frequently updated and adjusted. For example, the cast iron parts of the Chicago Valve Manufacturing Company, a subsidiary of ITT Corporation, one of the top 500 companies in the United States, contacted nearly 10 iron foundries in Shenyang, Dalian, Sunan and other places in China through its import department in China for unified and bulk purchase. Wal-Mart has a strong purchasing department in my country, which integrates American market information, new products and packaging design capabilities, global logistics system and smooth domestic purchasing channels. Scale ships to the US.

Issues and suggestions that should be paid attention to in the selection of export channels to the United States:

The first and second channels are traditionally used by Chinese import and export companies. Due to the limited professional quality of importers and exporters of such channels, The market demand is slow to respond, the scale advantage is small, and the transaction cost is high. There is a tendency to be gradually replaced by the third and fourth types of channels. There are often payment methods in specific trade procedures, and transaction methods are not standardized. Therefore, it is suggested that domestic enterprises should raise their risk awareness when choosing the first and second types of channels for export.

The third and fourth types of channels are trade methods developed in recent years. At present, it has become the main way of China's export trade. It is suggested that relevant domestic enterprises make full use of this approach to expand exports, so that Chinese export commodities can more effectively meet the aesthetic standards of American consumers and enter the mainstream sales market in the United States. Our company can contact relevant merchants through professional fairs held in the United States, and can also make contact through domestic branches and agents of these companies.

In a word, all kinds of companies should choose appropriate channels according to the current channel characteristics of US imports of goods from my country, as well as the company's scale, operating conditions and position in the complex and volatile market, and make full use of existing US companies. channels and formulate export channel strategies.