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Abstract
We select Zhangjiagang Acoshine Hometextile Corporation for our case study. According to the main differences between selling to Chinese customers and foreign ones,we find that we must create a new department and develop new products if we want to develop the foreign markets. Thus,we need a guideline including shipment,delivery and so on. Finally,a negotiation plan about three simulations is designed by our group.
Contents
i. Factory (3)
ii. Customers (4)
iii. Guideline (6)
iv. Negotiation (9)
Simulation 1 (9)
Simulation 2 (11)
Simulation 3 (12)
v. Limitation (13)
vi. Solution (14)
vii. References (14)
i.Factory
Zhangjiagang Acoshine Hometextile Corporation is a manufacturer and trading company in Jiangsu, China,which is established in 2012. There
are about one hundred employees including five research and development engineers in the company. It has eight production lines and sewing machine,weft knitting machine and embroidery machine for production. Using nearly ten years' development, the company now has its own warp knitting factory for fabric and sewing factory for the products.
The factory is a manufacturer of fleece blanket,baby blanket,throw,bathrobe,pajamas,home clothes,quilt,comforter,bedding set,cushion and pillow. Its customers are supermarkets,bazaars,trade corporations,airways and gift companies. With the reliable quality,competitive price and excellent service,Acoshine successfully gets OEM orders from many famous companies in China.
According to our survey,it has key strengths on trading. The company believes "customer comes first",so it employed five experienced sales staff who are insisting on the tent of “Innovation, Highly Effective” so that each customer has a specialist to consult with. And with the leading technology and services,their products are well sold within China,whose annual value is one
million and eight hundred thousand dollars. Besides,its transportation is extremely convenient because of Zhangjiagang Port and Shanghai Port nearby . Therefore,the company could save the shipping costs and send the goods more quickly,which makes average lead time only forty days.
ii.Customers
If we start our international operations and target foreign markets on January 2016,we will face two main differences between selling to Chinese customers and foreign customers.
1.In China,B2B and B2C are both important but our company supply only B2B for the foreign market since the cost is huge when the products enter the foreign market,no one would like to buy only one or two products directly from Acoshine in a foreign market. They prefer buying its products from a chain supermarket because supermarket always makes a block trade with a little extra cost on every product. But in China,the situation is better because transportation is much easier and faster and there is no need to pay the tariff,so the price would be much cheaper and the extra cost on every product is affordable to those customers who prefer shopping on line to doing that in a physical store.
2.We are not a famous brand both in China and in a foreign market,but