China being the fastest growing B2B market on earth is inherently different from her neighbor Japan which she wants to emulate. Any experienced multinational purchasing manager or a global sourcing agent would vouch to say that whereas Japan’s B2B market is characterized by stress on automobile and electronics, China’s B2B market is, however fragmented without one dominant player characterized by toys, garments, electronics, telecom etc.
-Global Sourcing and Multinational Purchasing Companies for B2B Market
The opening up of industries and fast growth in sectors like automobile, insurance, logistics, finance and telecom has coupled with strong government procurement and are pushing China B2B market for both consumer and industrial products. On the other hand, global sourcing agents and multinational purchasing companies have expressed concerns about problems to be solved ahead of this.
Be that as it may, one scholastic reason for the unrelenting push forward in B2b market in China is the same as it is everywhere. From the point of investment opportunities, the B2B market is larger than the B2C opportunities and apparently so in China. Several studies forecast higher domestic as well as international B2B market boom in favor of China, which is endorsed by leading multinational purchasing and global sourcing firms. The size of Chinese B2B market stands at roughly 2/3rds of its entire export earning which is proven in more ways than one.
-Global Sourcing, Multinational Purchasing and B2B Market
Global sourcing and multinational companies are unison in their opinion that for China to reach out importers around the globe, it naturally takes convincing efforts about how Chinese manufacturers are different or better and how dealing with B2B market is easier for Global sourcing and multinational companies compared to dealing with individual suppliers or manufacturers. Global Sourcing community has been open hearted in its assistance to Chinese manufacturers in terms of dealing with customers (not multinational purchasing companies) looking to source through an integrated approach.
-Global Sourcing, Multinational Purchasing Companies and B2B Market Problems
Not that China B2B isn’t without its share of teething problems, which it is learning to face, however, how and how fast the B2B market picks up the tricks of the trade matters more. Global sourcing and multinational purchasing companies point out that in most of the cases; it’s the global giants that end up on the winning side. In the present integrated B2B market, players like Alibaba, Global Sources and hc360and have been competing with experienced global sourcing and multinational purchasing companies as effectively as they can which is a good first step.