Opportunities & challenges in engaging China domestic markets : logistics issues in various distribution modes

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Opportunities & challenges in engaging China domestic markets : logistics issues in various distribution modes

 

Author: Ng, Siu-wai Sharon
Title: Opportunities & challenges in engaging China domestic markets : logistics issues in various distribution modes
Year: 2004
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics
Physical distribution of goods
Marketing -- China
Department: Graduate School of Business
Pages: x, 121, xxxvii leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1781761
URI: http://theses.lib.polyu.edu.hk/handle/200/1799
Abstract: In recent years, China becomes the dragon head of economic growth in Asia. China becomes a member of the World Trade Organization (WTO) in 2000. Restriction on distribution of most products will be phased out over the next few years after 2000. Foreign firms will be able to distribute imported products as well as those made in China. In view of improving business environment in China, many companies in Hong Kong may have interest in entering the China domestic market and they will begin seek for the suitable arm of distributing their goods to China domestic market. This paper had taken a survey targeting two groups of companies in Hong Kong which are distributing physical products, the companies who have already engaged in China domestic markets (Foreign Invested Enterprises or FIEs) and the companies who have not entered into China market yet. The paper aimed to study differences priority and severity of eight logistics problems, Documentation/Ordering Processing (Information Technology), Import/Export Services, Inventory Control, Partner selection in strategies alliance, Purchasing, Trade Regulatory Environment, Transportation Services and Warehousing Services among FIEs with offices in Hong Kong. It was found how the importance and severity of logistics problems various among distribution modes (Wholly-owned Manufacturers, Joint Venture Wholesalers, Joint Venture Retailers, Companies operating in Free Trade Zone, Import through state-owned/domestic importers) and between two target groups. It is concluded that FIEs should review and tailors their logistics planning in different regions according to their corporate objectives, products, target market, company's competitive advantages, etc., they should also solve the most critical logistics problems at the first priority and enhance their usage of various strategies actions. Also, FIEs who are intending to enter China domestics market can apply Porter's Five Forces Models to design its best logistics network and most efficient distribution modes in China. Finally, recommendation was made to Chinese government that they should improve their logistics environment by accreting the liberation of trade, keeping the rules and regulation open, centralizing logistics or infrastructure planning, improving IT infrastructure and legal system for e-commerce, etc. as well as seek for help from foreign logistics intelligent national logistics development so as to attract more FIEs to invest in China.

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