Global sources-viewed by me as an expert in export for noble enterprises in China has slowed down its pace. How can the splendent moments be renewed?
1. Global sources went too far in obeying “American rules”. With its identity as an expert, all the rules and regulations are trivial and boring. If not the right products allowed to appear in their business field, nothing else can be put in. If you want to creat a product here, just keep waiting. However, are you still willing to have a try when your rivals compete for the market with you with the same product? Anyway, get down to developing the special industry part as soon as possible. It’s high time that we should consider about Chinese suppliers’ appetite properly when catering for the buyers’ habits.
2. Too confident about the power of its brand. Though with buyers of the first-class in both quantity and quality, global sources fail to see that all buyers are “playboys” and global sources is never the only purchasing channel for them. What’s more, big buyers usually have already-made purchasing plans and purchase in large quantity for only several times a year. Yet many of them have their own special purchasing departments and channels. Thus share for Chinese suppliers is much less. As both the number of enterprises and the population in China are large, it’s necessary for global sources to reserve space for small and medium-sized enterprises.
3. “Fixed barracks, floating soldiers”-the present situation of the management and sales team. Top managers mainly consist of Europeans and Americans,then Taiwanese and Hong Kong people,while China mainlanders are few. This is partly caused by the buyer-oriented idea. However, it is not worth advocating for the boss’ lack of confidence in mainlanders depresses the whole team. In fact, there has been quite a lot of excellent mainlanders who have even surpasses their TW or HK bosses. But the top managers will not be replaced,as if they and the foreigners know better about Chinese than Chinese themselves. Actually, what needs to be done to know well about Chinese market and the habits of European and American buyers, is to send some excellent Chinese managers to work overseas for a year or two. This will also help cheer up the whole sales team.
4. The cooperation is not very effective. Though cooperating with eBay in introducing Global Sources Direct, global sources doesn’t gain much from it. EBAY did so well that it could lead to the loss of customers. eBay spent $2.6 billion purchasing Skype while global sources launched an internet phone project “FREE PHONE” which is not free to Chinese suppliers which shows that the cooperation between them is not very good. Otherwise with the service from SKYPE,why do Chinese suppliers still have to pay for it? Moreover, the fact proves that the free service is not ideal. In addition, global sources lacks cooperation of real significance with other enterprises such as DHL althoug they may have close business relationship with each other. Imagine that if global sources cooperated deeply with DHL, the low cost transportation problem of Chinese suppliers catering service company would partly be solved and the information exchange between them would increase mutual portfolio. Anyway, the premise is to cooperate well with each other. However, there are always no smart attackers at present.
5. Price of magazine must be cut down. Starting from magazine industry, global sources has been taking magazine as its professional representative with no one comparable to it. But the price still keeps high. With the birth of network and the improvement of printing technology, the cost of magazine can be cut down. In addition, as new rivals are competing for the market, a lot of magazines are available to buyers for free. Also, the renewal of purchasers and the notebook becoming portable lead to some decrease in the reading quantity. The value of magazine is of less point to buyers than ever. So the price must be cut down. Moreover, many suppliers are only willing to select the website and refuse the invitation to promote on the global sources. Whether the buffet style service will be taken into consideration is still unknown.
6. Simplify the professional exhibition sales personnel. Exhibitions held by global sources are very gorgeous and popular. However, sales staff not only cause internal contradictions, but also decrease the sales quantity. In fact, it is not difficult to sell global sources’ exhibition booths. So once a salesman joins a company, if being selective, it’ll be easier for SALES and suppliers to make choices and cooperate quickly. It may be said that the exhibitions carefully developed by global sources have been mature already, excessive sales investment is unnecessary.
7. Set up special overseas sales team. As more and more Chinese pursue life of high quality, foreign brands enter Chinese market at a very fast speed. Considering that both magazine and website of have a certain amount of readers, there is large space in developing this part of the market. However, English version hasn’t been started, never has the advertisement part in European and American market. So Merle is always providing various kinds of service to European and American buyers. Why not take a sum of money from them here? Why not let those who want to build their brands in China do some investments?
8. Gain more earnings from the training organization. Nowadays, the training organizations come out like mushrooms because of the great market potential. Global sources owns the best resources, top-class office buildings in the center of Shenzhen, agencies all around the world and experienced foreigners. To set up training organizations not only attracts customers but also work well as a way to improve the popularity and deepen the brand effect.
9. Assist Chinese enterprises to hold “PSE”. Global sources held a lot of “Buyers’ special purchasing exhibition” for overseas buyers and provide “Chinese buyers’ import exhibition” to overseas suppliers as well. Or it provides Chinese enterprises with some special service. If only global sources is willing to change its service rival, it can do more and do better. Because with enough foundation and details here, global sources never needs to walk on so hard and slowly as now.