subject: What Lessons can We Learn From the Chinese Drop Shipping Model? [print this page] What Lessons can We Learn From the Chinese Drop Shipping Model?
People in Western Europe and North America keep complaining that the Chinese are taking over their markets. This situation has not arisen as a result of magic. There are definite patterns that have brought us to this point. We have to understand those patterns if we are to have any chance of penetrating the market in any meaningful sense. We also have to be patient as we learn lessons from the famous "China dropshipper". It is not good enough to merely complain about the unfairness of international trade. European investors have to learn the necessary lessons.
The reasons for Chinese success in drop shipping:
The major competitive advantage that Chinese products have is price. They are simply capable of producing all our products at significantly lower costs of production. Even more worrying for Western employees, is the fact that many organisations are catching the bug for outsourcing all their services to the East. They wish to compete on the global market through reduced costs. The bloated and unionized labour force in the affluent countries is facing extinction unless they completely learn the lessons that China has been subtly delivering to them.
Often workers in France will take to the streets to the streets to protest a minimal increase in their retirement age. In China and India, you retire when you are no longer capable of the physical demands of the job. People in these communities understand the value of money. They are prepared to work very long hours with few health benefits and minimal rates of absenteeism. We can sit back in the Western world and say: "That is not how we do things here!" Unfortunately for the Western hemisphere, China is taking over the world. India is a close second and Japan is already a leading exporter of technology.
Accessing products through China:
Given the vibrancy of Chinese export markets, it is inevitable that they would become the leading exporters of various products including consumer electronics. When merchants are given the opportunity to deal with a wholesale from China, the first thing that they will be pleased about is the fact that their profits are likely to rise. Recently there has been a realisation that some of the products from these emerging economies are of inferior quality. Nevertheless the market has been able to tolerate these inconsistencies. On the other side, the Chinese suppliers have responded to the criticisms by raising their game accordingly.
