Abstract
This chapter examines the changes that have recently been introduced in the distribution channels for industrial products in the People’s Republic of China (PRC), and assesses their overall impact on organizational buyer—seller relationships in this environment. Data for the study were collected during the months of May through July 1996. The sample comprises 72 organizations (local and jointventure distributors/wholesalers) drawn from the Tianjin and Beijing areas, the sources of which were the following directories: Zhong Guo Zhi Ming Qi Ye Lu (A Shortlist of Companies in China), and Tianjin Zhi Ming Qi Ye Lu (A Shortlist of Companies in Tianjin). Industrial products handled by these distributors included the following: machines, materials, capital equipment, office equipment, parts, and hand/power tools. The study addressed itself to the following specific issues: the nature and degree of competition between private distributors and state-owned purchasing agencies, the extent to which private distributors have equal access to foreign exchange relative to the state-owned purchasing agencies, the extent to which industrial distribution channels can now be said to be shorter and more efficiently run as compared to the situation before the reforms, import licences, the degree of freedom foreign suppliers have in choosing distributors, and the degree of government control over the running of the channels. Analysis of this nature is important and has significant implications for industrial marketing strategy in this environment.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Chang, K. and Ding, C.G. “The Influence of Culture on Industrial Buying Selection Criteria in Taiwan and Mainland China”, Industrial Marketing Management, 24 (1995).
Davies, H. et al. “The Benefits of ‘Guanzi’: The Value of Relationships in Developing the Chinese Market”, Industrial Marketing Management, 24 (1995).
Deng, S. and Wortzel, L.H. “Import Purchase Behaviour: Guidelines for Asian exporters”, Journal of Business Research, 32 (1995).
Dzever, S. “Industrial Procurement Practices of Taiwanese Firms in the Chinese Market”, in S. Dzever and J. Jaussaud (eds) Perspectives on Economic Integration and Business Strategy in the Asia Pacific Region (Basingstoke: Macmillan, 1997).
Kaynak, E. and Kucukemiroglu, O. “Sourcing of Industrial Products: Regiocentric Orientation of Chinese Organizational Buyers”, European Journal of Marketing, 26 (1992).
Kwan, P. et al. “Distribution of Consumer Products in China”, Paper presented at the conference “The Future of China”, INSEAD (Fontainbleau, France: 1994).
Lambin, J.J. Strategic Marketing. A European Perspective (London: McGraw-Hill, 1993).
Mummalaneni, V. et al. “Chinese Purchasing Managers’ Preferences and Trade-offs in Supplier Selection and Evaluation”, Industrial Marketing Management, 25 (1996).
New Star Publishing, China’s State-owned Enterprises Enter Market (Beijing, 1993).
Walter, P.G.P. and Mingxia, Zhu “International Marketing in Chinese Enterprises: Some Evidence from the PRC”, Management International Review. 35 (1995).
Warner, M. “Economic Reform, Industrial Relations and Human Resources Management in the People’s Republic of China in the Early 1990s”, Paper presented at the conference “The Future of China”, INSEAD (Fontainebleau, France: 1994).
Yadong, L. “Business Strategy, Market Structure, and Performance of International Joint Ventures: The Case of Joint Ventures in China”, Management International Review, 35 (1995).
Editor information
Editors and Affiliations
Copyright information
© 1999 Sam Dzever and Wang Zhengyi
About this chapter
Cite this chapter
Dzever, S., Zhengyi, W. (1999). Industrial Distribution Channels in the People’s Republic of China Market. In: Dzever, S., Jaussaud, J. (eds) China and India. Palgrave Macmillan, London. https://doi.org/10.1007/978-0-333-99508-2_7
Download citation
DOI: https://doi.org/10.1007/978-0-333-99508-2_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-27043-9
Online ISBN: 978-0-333-99508-2
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)