The development direction of trading companies

With the popularization of Internet technology and artificial intelligence. Any business model can be quickly replicated, which means that the development cycle of each enterprise becomes more flattened, and for buyers from different countries and regions, the cost of obtaining suppliers is more efficient and lower. This also makes more and more importers and even international buyers prefer to cooperate directly with factories and eliminate intermediaries and traders. So the outcome for traders will become increasingly difficult

The answer is not so. The market environment only requires traders to be more specialized and focused on pain point solutions in a certain product field.

The past traders only existed because they had the advantage of information asymmetry. This includes time differences for a particular product and regional differences. For now, this advantage no longer exists. The means for traders to survive are the integration and reconfiguration of resources. The current development trend is that traders should pay more attention to service awareness. Whether it is pre-sales service or after-sales service to increase customer experience, this is the essential difference between factories and traders. Because the development center of the factory is in product research and development and how to reduce production costs. This is also because the service spirit and awareness of factories are generally worse than those of traders. Traders generally outperform factories in terms of service awareness, including deep communication with customers and marketing.

Therefore, our conclusion is that trading companies should be more deeply involved in marketing, including communicating with different types of purchasers or company roles. Deeply participate in the development and promotion of new products. Simultaneously, conduct in-depth optimization of the supply chain. Be a steadfast market driver

Traditional advantages of trading companies:

1. Service awareness and fulfillment ability

2. Ability to handle diverse and complex orders and MOQ requirements

3. Flexible payment methods, factories usually pay more attention to payment risk issues. Due to the more extensive experience of trading companies in global trade

Compared to some enterprises that do not have offices or branches in China or other regions. Trading companies can better handle local interactions