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The purpose of this paper is a conceptualization of the identification and motivational methods for top distributors in the Chinese market for frequency converters. An examination of the market size, participants and segments is provided. Further the benefits for the manufacturer and distributor that occurring from a partnership are elaborated on and the term top distributor is defined.
Based on marketing channel literature a conclusive multidimensional model for the top distributor selection has been developed. The basic dimensions for distributor selection were determined as Sales/Market, Product/Service and Risk/Uncertainty factors. Those dimensions are supplemented by the China specific factors Guanxi and Human Capital. With special focus been given on the aspects that businesses might encounter when operating in China the reginal factors in distributor evaluation are also being discussed.
IN order to determine the value of different rewards two surveys were conducted. For the identification of the most valuable motivators a rewards portfolio was developed and applied on the data gathered in this surveys. The rewards portfolio was based on the portfolio analysis first developed by the Boston Consulting Group. The rewards determined as most valuable from both the manufacturers and distributor sides were “additional marketing and customer acquisition support”, “extended payment terms” and “market intelligence from manufacturer”. An explanation for the importance of those rewards is additionally provided.
In recent times, China’s role in the clothing industry has been threatened. China’s ability to compete on a cost basis is diminishing and urges the country to find a new means of competition. The aim of this study is to assess China’s future role in the industry with special regards to European apparel manufactures. This is done by taking a closer look at several factors that have an impact on the industry. The analysis of published data, conducted studies and expert opinions brought to light how the government is actively involved in the pursue of maintaining China’s leading role in the textile and clothing industries as these are important contributors to China’s economic well-being. Two strategies have been emphasized. Firstly, the upgrading of the industry as a means of differentiation that allows China’s clothing industry to compete on other factors than costs. Secondly, the boost of China’s domestic market in order to mitigate against the risk arising from the volatility of markets and increased need for speed in the industry. While China’s role is undoubtedly changing, it seems like the country has found opportunities to maintain an important position in the future of the clothing industry.