Structure of international distribution system
When adopting different strategies to enter the international market, enterprises will face different distribution decisions. When enterprises choose different distribution strategies, the transfer of products or services from producers to consumers will go through different marketing intermediaries, thus forming different types of international distribution structures. The international distribution system consists of these marketing intermediaries as well as producers and consumers or users. Marketing intermediaries can be divided into many different types. For example, according to the different functions performed by each marketing intermediary, marketing intermediaries can be divided into distribution intermediaries, agency intermediaries and marketing auxiliary institutions. Marketing auxiliary institutions are those institutions that do not participate in commodity exchange (exchange here refers to the negotiation process in which buyers and sellers reach a deal), but provide support for the realization of commodity exchange, such as management consulting companies, commercial banks, transportation companies, warehousing companies, insurance companies, etc. According to the different countries where the marketing intermediaries used in international market distribution are located, international distribution channel institutions can also be divided into domestic intermediaries and foreign intermediaries.
When an enterprise enters the international market by way of export, its products will go through not only the domestic distribution channels, but also the distribution channels of the importing countries, and finally reach the consumers and users in the target market countries. In this case, the completion of a distribution must go through three links: the first link is the domestic distribution channel; The second link is the distribution channel from the country to the importing country; The third link is the distribution channel of the importing country. The structure of export distribution system is shown in figure 1.
When enterprises engaged in international marketing set up factories abroad to produce and sell locally, the processes and links needed for product or service distribution may be simpler than those needed for export. The most obvious thing is that they do not need to go through domestic middlemen in the country where the parent company is located when they produce abroad.
It can be seen that enterprises engaged in international marketing have a variety of distribution channel models to choose from, which depends on the established international market entry strategy of enterprises. Moreover, when choosing a specific international distribution strategy and designing an international distribution channel structure, enterprises must also fully consider their own resources and the characteristics of their industries, the channel strategies of competitors, the characteristics of the target market, the legal environment of the target market countries, and the lifestyle and buying habits of consumers. In addition, no matter what choice is taken, international marketing enterprises must consider the efficiency and control of channels.
2. Types of international middlemen
(1) Domestic middlemen
Domestic middlemen and international marketing enterprises are located at the border of the same country. Because of the same social and cultural background, it is easy for them to communicate and cooperate. However, because they are far away from the target market countries and have little contact with target customers, there are some shortcomings in providing target market information. Domestic middlemen are generally used when production enterprises lack resources or experience in international marketing, or they think it is not necessary to directly enter one or some international markets. Domestic middlemen can be divided into two categories according to whether they have the ownership of export commodities, namely exporters and export agents. Anyone who owns the ownership of export commodities is called an exporter; An export agent is a person who accepts the commission for buying and selling goods in the name of the principal and does not own the goods.
The basic functions of exporters are the same as those of all-round wholesalers, except that the customers of exporters are foreign buyers. Exporters buy and sell goods in their own names, decide their own colors, varieties and prices, raise their own operating funds, have their own warehouses and bear their own operating risks. Large exporters in some developed countries can also provide financing services to foreign buyers and promote sales in target markets. Most exporters are generally engaged in the export business of a certain industry for a long time, so they have a better understanding of the industry and can provide certain professional services for the production enterprises that need to export goods.
There are two forms for exporters to engage in export business. One is "buy before you sell" and the other is "sell before you buy". There are three main types of common exporters. ?
A. export bank. Some countries call it an "international trading company", some countries call it a comprehensive trading company (such as Japan and South Korea), while China generally calls it a "foreign trade company" or an "import and export company". Because export banks are familiar with export business, have extensive contacts with foreign customers, have more information about the international market, generally enjoy a high reputation in the international market, and have a large number of professionals who are proficient in international business, foreign languages and laws, they are often the ideal choice for some enterprises entering the international market for the first time. For foreign buyers, they are also willing to deal with export banks because they can provide all kinds of goods.
B. indenthouse. Purchasing/ordering banks mainly purchase from domestic production enterprises or order from production enterprises designated by foreign buyers according to foreign orders. They have the ownership of the goods, but they will not hold large stocks for a long time. When the purchase quantity reaches the order quantity, they will deliver the goods directly to foreign buyers. Because the purchasing/ordering company first finds the buyer and then purchases from the production enterprise, it does not reserve a large number of goods, which has low risk, fast capital turnover and low cost.
C. complementary marketing. Complementary marketing is also called "piggy export" (piggy? Back Exporting), or cooperative export, or incidental export, is actually a form of export marketing that uses complementary products of other enterprises to promote themselves. For those small enterprises that cannot directly export, supplementary export is a simple, easy and low-risk way to enter the international market. ?
An export agent is a middleman who accepts the entrustment of an export enterprise and acts as an agent for export business. Unlike exporters, export agents do not sell goods to foreign buyers in their own names, but only accept the entrustment of domestic sellers. In the name of the client, they carry out export business on behalf of the client under the conditions stipulated in the agreement between the two parties. They do not own the ownership of the goods, but charge a certain commission to the client after the goods are sold. The use of export agents can make production enterprises gain several benefits: export agents can provide foreign market information and international marketing technology to production enterprises at any time; As several complementary products are operated at the same time, export agents can realize economies of scale in ocean shipping and overseas market agents; The use of export agents can save the time and cost of establishing your own export department; Export agents can also give manufacturers more control over overseas buyers. Theoretically speaking, it is an ideal way for small and medium-sized enterprises to use export agents to enter the international market when they are engaged in international marketing. But in practice, some of the above advantages may not be realized. However, small and medium-sized enterprises still use export agents in large quantities. In the international market, export agents mainly include comprehensive export managers, sales agents, manufacturers' export agents, export commission agents and international brokers.
A. portfolio export manager. The general export manager provides comprehensive management services for the production enterprises whose products need to be exported, and sells products to foreign buyers in the name of the production enterprises, which is actually equivalent to the export department of the production enterprises. They are generally responsible for financing and document processing, and sometimes they have to bear credit risks. Generally, it is paid in the form of sales commission, and a small service fee is charged every year.
B. the manufacturer's export agent. This is a highly specialized export agent, also known as the export representative of the manufacturer. Their functions are very similar to those of comprehensive export managers, but the difference is that the export agents of manufacturers provide relatively narrow services and operate fewer products, and generally operate non-competitive and complementary products. In international marketing, many small and medium-sized enterprises use manufacturers' export agents. In addition, some enterprises often use manufacturers' export agents when exploring new overseas markets, promoting new products or having little market potential.
C. sales agent. Sales agents can often influence or even decide the price, distribution channels and promotion methods of export commodities, so they are actually equivalent to the sales department of the production enterprise, responsible for the sales of all products of the production enterprise. Sales agents provide more services than exporters, such as advertising planning in the international market, evaluation and optimization of distribution channels in the international market, personnel promotion, ordering meetings, international market research, international marketing consulting, etc.
D. export committee building. An export commission broker is also an export middleman entrusted by a production enterprise to act as an agent for export business. They are engaged in two kinds of business: one is to purchase the required goods in China on behalf of foreign buyers and then export them; The other is acting as an agent for domestic enterprises to sell products abroad. When an export commission agent carries out export business for domestic enterprises, there are usually two ways: one is the so-called consignment, and the other is that the commission agent first looks for customers in the international market and obtains orders, and then the domestic production enterprises supply them. In the second case, the functions and functions of the export commission agent are equivalent to those of the manufacturer.
E. international brokers. An international broker refers to a broker engaged in import and export business. This agent is only responsible for matchmaking between buyers and sellers. It does not own the goods, nor does it actually hold the goods and transport them on their behalf. Generally, there is no long-term fixed relationship with both importers and exporters. The applications of international brokers mainly include: ① enterprises lacking international marketing experience; 2 products with strong seasonality; (3) Small and medium-sized enterprises that cannot set up foreign sales organizations; ④ It is not worthwhile or necessary to set up a foreign sales organization; ⑤ The target market is far, scattered or small.
(2) the manufacturer's export organization.
Enterprises with large export volume often have self-operated export institutions. Manufacturers' self-operated export institutions mainly include the following types:
A. the export department is attached to the sales department. This export department is still subordinate to the sales department of the enterprise. Usually, an export department manager is responsible for foreign sales, while other units and personnel in the sales department are still responsible for domestic sales. Domestic and foreign sales work together, and both are coordinated and controlled by the sales manager.
B. independent export departments or branches. Independent export departments or branches are responsible for the export business of the whole enterprise. Although it has no legal person status, it is different from the affiliated export department. It is no longer subordinate to the sales department, but directly led by the general manager or the deputy general manager in charge of business.
C. export subsidiaries. This is a subsidiary with independent legal personality established by a large enterprise with the right to operate import and export to further expand exports and occupy more international markets. Because this subsidiary specializes in the export business of the parent company's products and is familiar with the products and customers, it is easy to accumulate experience. At the same time, due to its legal person status, it also has greater autonomy and flexibility and strong adaptability to the international market.
D. overseas sales branches. Some enterprises not only set up export agencies in China, but also set up branches overseas to directly display and sell products to overseas customers and expand overseas markets. In addition to overseas distribution of products, overseas sales branches can also undertake market research, warehousing, promotion, product display, customer service and other functions.
(3) Import middlemen
Similar to export middlemen, import middlemen can be divided into two categories according to whether they have the ownership of goods, namely import dealers and import agents, and those who have the ownership of goods are called "import dealers"; Anyone who accepts the entrustment, does not own the ownership of the goods and gets paid in the form of commission is called an "import agent".
A. import dealers. There are four main types of import dealers: importers, distributors, wholesalers and retailers. Among them, importers are also called "import banks". Any commercial enterprise that imports goods from abroad and sells them to the domestic market can be called an importer. Importers can "sell before buying" or "buy before selling". According to its business scope, it can be generally divided into three types: ① professional importers; ② Importers in specific regions; ③ Importers who widely purchase goods from the international market. Importers are familiar with their products and target international markets, and have a set of processing techniques and sales skills such as commodity selection, grading and packaging. It is difficult for domestic middlemen to replace importers.
B. import agent. An import agent is a trading enterprise that accepts the entrustment of the seller in the exporting country, acts as an import agent and collects commission. They do not bear credit, exchange and market risks, and do not own the ownership of imported goods. Its functions mainly include: first, handling import on behalf of domestic buyers; The second is to sell consignment goods on behalf of foreign exporters; The third is to act as the representative of foreign exporters or manufacturers to sell products. Import agents mainly include the following categories: foreign manufacturers' agents, import commission agents, international brokers and financing brokers. In addition to all the functions of a general broker, a financing broker can also provide financing for all stages of sales and manufacturers' production, and share risks for buyers or sellers.
(4) the organizational structure of international retailers' channels
The structure of retailers in various countries generally changes with the level of economic development in that country. In developed countries, the retail format structure is relatively reasonable, there are many specialty stores, supermarkets, shopping centers and convenience stores, and the retail industry is also highly concentrated, so the open-air market has little effect. In developing countries, retailers are usually small in scale and relatively simple in format. Emerging formats are developing slowly and immature, and traditional formats such as grocery stores and department stores still dominate the retail industry. Of course, there are exceptions to the retail structure in some developed countries. The size of retailers in these countries is similar to that in most developing countries. There are also great differences among developed countries.
Generally speaking, the structure of global retailers is constantly changing. Many developing countries and newly industrialized countries are working hard to improve the retail format structure and improve the scale level and efficiency of retailers. The retail industry in developed countries is also constantly developing and changing. A new trend of retail development is internationalization. The influence of this trend on the international market layout should attract the attention of international marketing enterprises. Another trend of retail development is scale and chain operation. The scale is mainly achieved through chain operation. The basic principle of chain operation is to distinguish the two retail functions of purchasing and selling. Headquarters carries out a large number of centralized purchases, and many scattered stores realize a large number of sales, thus overcoming the inherent shortcomings of small-scale decentralization of retail industry.