China's Low-end Manufacturing, International Sales Channels

The low cost manufacturing enterprises are the main force of the manufacturing industry, as well as an extremely important economic sector in China. However, most low cost manufacturing enterprises in China mainly focus on the manufacturing itself and have no channel of distribution in international trade, so that they have razor-thin profits. China manufacturing industry is making great effort to realize the upgrade the industry and industry transition, and to improve the technological innovative capabilities of the enterprises. At the same time, it is necessary for the low cost manufacturing enterprises to build up and modified their channel of distribution in international trade to increase the profits and competitiveness.Firstly, the study analyzes the distribution channel of the low cost manufacturing enterprises at present, and summarizes two main characteristics of the existing distribution channels (direct marketing channel and indirect marketing channel) in the international marketing. The study also has an analysis on the relationship between the profit and distribution channels for China low cost manufacturing enterprises. Then, a case study on the"Vuvuzela"will be given to show how the profits be distributed between the manufacturers and the middle men.Secondly, on the basis of the"6C"model for deciding the distribution channel, the study makes an analysis in detail about the problems in building and improving the distribution channels for China low cost manufacturing enterprises, the resource limitation to the enterprises and the capability to control the distribution channel. Then, the study explores how Japanese vehicle manufacturers achieve success in the U.S, market. In the end of this part, some suggestions will be given according to the analysis above.Thirdly, the study clearly indicates three objects for building and improving the distribution channels for China the low cost manufacturing enterprises: the profit, the safety and the control of the distribution channel. Then, proposals will be illustrated for China low cost manufacturing enterprises taking both external and internal environment into account. The improvement of the external environment refers to enhancing their awareness of channel-optimizing, breaking the constraints of lacking talents and abundant market research. The internal environment refers to establishing strategic alliance, vertical integration of the channel and alliance among the low cost manufacturing enterprises.