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In recent years, the rapid development of cross-border e-commerce platforms has significantly lowered the barriers for products entering international markets. This has brought new opportunities and challenges to the Chinese watch manufacturing industry. This article explores the impact of cross-border e-commerce on export products, analyzes the operational differences between product-based and sales-based companies, and offers practical advice for watch wholesalers on selecting suppliers.
Cross-Border E-Commerce Platforms Lower Barriers for Chinese Manufacturing
In the past three years, the rapid growth of cross-border e-commerce platforms has drastically reduced the barriers for products to enter international markets. Previously, Chinese export products and domestic products operated in two separate systems, with factories and traders needing strict qualifications to handle foreign orders and exports. Foreign trade factories obtained various international certifications through rigorous inspections, ensuring their products met high standards in both design and quality, creating significant export barriers.
However, the emergence of cross-border e-commerce has quickly broken down these trade barriers, allowing products that previously did not meet export standards to reach global markets. This has led to some businesses facing fines due to substandard product quality. Such incidents result from platforms that do not adhere to international trade rules, causing businesses to pay a high price for their mistakes. Consequently, the reputation of Chinese manufacturing, built over many years, has suffered.
The operating model of cross-border e-commerce platforms negatively affects merchants' profits and development. High fees and strict rules imposed by platforms reduce profit margins, making it difficult for merchants to invest in product design and manufacturing improvements. This hinders the progress of Chinese products toward becoming branded and high-quality, creating a three-way loss for buyers, merchants, and the supply chain. Therefore, international watch wholesalers must find reliable suppliers in this mixed market environment.
Why You Should Choose Product-Based Watch Factories for Cooperation
Small and medium-sized enterprises generally fall into two categories—product-based and sales-based. To capture market share, these watch companies often allocate resources to maximize benefits and enhance their core competitiveness, resulting in either a product-based or sales-based style. What resource allocation strategies lead to these differences?
Differences in Resource Allocation Between Product-Based and Sales-Based Watch Factories:
As shown in the diagram, both product-based and sales-based companies view new products as essential for attracting and retaining customers. Unlike globally renowned watch styles, which have longer product update cycles, product-based companies that produce high-quality mid-range watches frequently invest significant resources in product research and innovation to ensure their products remain cutting-edge and unique. For instance, NAVIFORCE releases 7-8 new watch models every month to the global market, each with a distinctive NAVIFORCE design style.
[NAVIFORCE R&D team image]
In contrast, sales-based companies allocate their resources to marketing strategies, focusing more on customer relationship management, advertising, promotions, and brand building. This results in lower investment in research and development. To continuously offer competitive new products with minimal investment in development, sales-based companies often neglect intellectual property and compromise on product quality. NAVIFORCE, as an original watch design factory, has frequently encountered cases where sales-based manufacturers have copied its designs. Recently, Chinese customs intercepted a batch of counterfeit NAVIFORCE watches, and we are actively seeking to protect our rights.
Now that we understand the operational differences between product-based and sales-based watch factories, how can watch wholesalers determine if a watch supplier is a product-based manufacturer?
How to Choose Reliable Watch Suppliers: Tips for Wholesalers
Many watch wholesalers feel confused when choosing Chinese watch manufacturers because almost every company claims to have "the best products at the best prices" or "the highest quality at the lowest price for the same price." Even attending trade shows makes it difficult to make a quick judgment. However, there are practical methods to help:
1. Clarify Your Needs: Determine the product type, quality standards, and price range based on your target market and consumer demands.
2. Conduct Broad Searches: Look for potential suppliers through the internet, trade shows, and wholesale markets.
3. Perform In-Depth Evaluations: Review samples, and quality certifications, and conduct factory visits to assess the supplier's production capabilities and after-sales service.
4. Seek Long-Term Partnerships: Choose trustworthy suppliers to ensure a stable, long-term cooperative relationship.
By following these methods, watch wholesalers can find the most suitable partners among numerous suppliers, ensuring product quality and stable supply.
[NAVIFORCE factory quality inspection picture]
In addition to the common methods mentioned above, you can also assess product quality by checking whether a watch supplier fulfills its after-sales promises. Sales-focused watch manufacturers often prioritize low prices, which can lead to issues like copyright infringement and poor quality. These suppliers may ignore after-sales requests or send more subpar watches instead of addressing complaints. Their one-year after-sales service promises are often not fulfilled, indicating a lack of integrity and making them unsuitable for long-term business relationships.
On the other hand, NAVIFORCE, as a product-oriented watch supplier, stands by the principle that “no after-sales service means the best after-sales service.” Over the years, our product return rate has been below 1%. If any issues arise with a small number of items, our professional sales team responds promptly and handles customer concerns effectively.
Post time: Sep-03-2024
