The paper "China’ s Online Retail Marketing " is a perfect example of a marketing case study. China is one of the largest world’ s export thrust in the arena of business. China’ s online retail marketing is swiftly developing although highly fragmented. The online retail stores in China offer such prospects as e-commerce as well as drug retailing. There is a recent radical change towards the lines of growth in trade between China and other countries of the world including Australia and the US. Apart from this growth, China is also creating regional trading partners like Japan and Singapore.
These countries consume billions of Chinese’ s products every year. Over the past decade, the Australian retail market has been aggravated by this anticipated cost-benefit on importation from China which takes priority over local procurement. Definitely, due to open policies in China trade unions, there will be an extensive entry of other global traders into the World Trade Organization (WTO) thus it will, in turn, boost foreign trade investment of china. However, Australian firms are faced by logistical problems that affect the flow of information which will, in turn, affect procurement activities. 140 000 retail businesses as stated by the Australian government report reflect a significant 4.2% Gross Domestic Product of the country and has been declining over the past time reflecting slower growth of the Australian economy.
The products received from China by retail industries are diverse. It covers several departments including furniture, electrical and electronic products, attires and foot wares. The supply chain management for these products has not been well managed since there is an emergent of harsh trading environment for the retail industry that is formed by the inefficient logistical methods which bring structural changes in the economy at the same time affects consumer behavior.
As argued by Graham Earnshaw (2006), strategic sourcing that develops long term affiliation with suppliers is very important in enhancing the firm’ s performance. The strategic sourcing choices should not only base operational activities such as cost, quality and delivery but also it is very vital to incorporate different aspects of management like quality management practices, cost reduction capabilities as well as management practices. These attributes will develop key elements that will enhance long term strategic relationship among the suppliers in supply chain management (Graham Earnshaw, 2006 ).
Supplier selection depends on either an existing relationship or a developed relationship in the supply chain. Analytical hierarchy process (AHP) model is used to describe the relative importance of each criterion in ranking the suppliers in the two countries (China and Australia). The model (AHP) considers political, social, economic and environmental heights in the related countries. It also checks on changes in exchange rates, international trade policies and cultural differences that may exist in the related countries. Several literature studies cite benefits of internationalization in supplier selection as it reduces cost prices hence gaining better access to goods and services (Monczka and Trent, 2010), advancing to new markets, optimizing financial benefits and improving communication infrastructure (transportation) (Neureiterand Nunnenkamp, 2010).
Australia retail traders thus use the analytical hierarchy model in procuring at the seam time sourcing a long-term international relationship from China enterprises.
Andrew, V., Y., Chang, Y. & Andrew, T. (2010). A legal guide to doing business in the Asia-Pacific. Australia: American Bar Association.
Balassa, A., B. (1965). Economic Development and Integration. Brazil: Centro de Estudios Monetarios Latinoamericanos.
Chopra, S. and Meindl, P. (2001). Supply Chain Management: Strategy, Planning and
Operation. New Jersey: Prentice-Hall.
Graham, E. (2006). China Business Guide. China: China Economic Review Publishing.
Jack, W., P. (2007). Plunkett's Transportation, Supply Chain and Logistics Industry Almanac. United States: Plunkett Research, Ltd.
Monczka, R., M., Handfield, R., B., Guinipero, L., C. & Patterson, J., L. (2010). Purchasing and Supply Chain Management. United Kingdom: Cengage Learning EMEA.
Neureiterand, M. & Nunnenkamp, P. (2010). Modes of International Sourcing and the Competitiveness of Firms: An Analysis of European Survey Data (1558).Vol. 64 Iss 3. Pennsylvania State University: Wiley publishers.
Patricia, J., D. (1990). Organizational structure and logistics service innovation; International Journal of Logistics Management. Vol. 22 Iss: 1, pp 26-51. United States: Emerald Group Publishing Limited.
Horsburgh, R., AM. (2011). Toll 2011 Annual Report, Australia: Toll Holdings Limited.