Supply Chain Relationships Behind Various Import Companies

In the foreign trade supply chain, the relationship structure of different company types is included. For example,in the field of foreign trade B2B, Chinese suppliers will supply directly to foreign importers, brands, manufacturers, supermarkets, wholesalers, etc., most of them are containers; while in the field of B2C, there will be some scattered small orders, some Chinese suppliers will also supply these orders. For example, foreign retailers will place orders from Ali Express on the Alibaba platform, mainly by express little bags and parcels.

From the types of import companies, we can understand where the goods and products on the foreign market come from, and what constitutes the sales and distribution channels? What is the relationship between various types of foreign trade companies?

Let's take a look at pure importers. After the import, where will the products be sold? Their general customer is a retailer, and like a large wholesaler customer, they can pick up the entire container. That is to say, the main customer group of a pure importer is a wholesaler and retailer, and they do not sell goods directly to consumers. Next, let's take a look at brands and manufacturers. Under normal circumstances, such customers only want to concentrate on product development and production, do not want to spend too much time and energy on sales, and do not want to bear the pressure and risk of selling goods. Considering this situation, they usually go to the distributor.

Supply chain is a kind of connection between customers and suppliers through purchasing, storage, distribution, service and other activities. We can see that one of the important links is distribution.

What is distribution? Why don't manufacturers sell it themselves? First of all, we said above that it will take a lot of time and energy. Secondly, manufacturers need sales teams to carry out sales, which requires labor and material costs, and the process of sales will be accompanied by the risk of slow sales and accumulation of products. Therefore, many manufacturers authorize distributors and wholesalers in the market to let them sell their goods. In fact, there was no concept of distributors in the early days. Generally, wholesalers take goods directly from manufacturers and supply them to downstream retailers. Later, due to the development of supply chain, logistics, and commerce, distributors appeared. Manufacturers can take advantage of distributors' market accumulation, relationships and existing channels to quickly infiltrate goods into cities across the country. In other words, for the distributor, both the wholesaler and the retailer are his customer groups.

Finally, let's talk about customers like supermarket who import from Chinese suppliers, and local consumers abroad can buy these imported products directly from supermarket. As far as the local market is concerned, there is no other intermediate link between the consumer and the commercial supermarket.

To sum up, the first customer type of Chinese exporters is importers who can export to pure trade, and pure importers will sell goods to wholesalers and retailers; the second customer type is export to brand owners or manufacturers, and the imported goods will be sold to downstream wholesalers and retailers through the distribution channels of their distributors. The third type of customer is the supermarket. After the supplier, consumers can buy goods directly from the supermarket. Finally, the fourth customer type is the middle wholesaler and distributor who will also import from Chinese suppliers according to their needs.

We can see that the network chain structure of the supply chain, the types of various import companies, and the relationships between them are still relatively complicated. However, mastering the types of various import companies and the supply chain behind them can make us more clear about the composition of our customer groups and help us develop our customers.

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