China Wholesales Industry Indepth Research and Development Strategic Research Report, 2013-2017

As a very important link in commodity circulation, the wholesales industry plays a vital role in saving total social cost, reducing transaction cost, improving marketing efficiency, as well as promoting the growth of economy. However, with the acceleration of integration process of manufacturers and retailer toward to wholesales link, the whole circulation system shows a basic pattern of "two heads active while the middle shrinking", and the "useless theory of wholesales" begins to be prevalent. According to developmental experience in foreign wholesales industries, the overall ratio of wholesales and retail trade shows a declined trend, while the wholesales product volume still keeps a upward trend and the wholesales industry occupies a very important role in commodity circulation link.

As a very important link in commodity circulation, the wholesales industry plays a vital role in saving total social cost, reducing transaction cost, improving marketing efficiency, as well as promoting the growth of economy. However, with the acceleration of integration process of manufacturers and retailer toward to wholesales link, the whole circulation system shows a basic pattern of "two heads active while the middle shrinking", and the "useless theory of wholesales" begins to be prevalent. According to developmental experience in foreign wholesales industries, the overall ratio of wholesale and retail trade shows a declined trend, while the wholesales product volume still keeps a upward trend and the wholesales industry occupies a very important role in commodity circulation link.

According to a new division standard of mini, small, medium and large-sized enterprises, in 2010, there were 19,482 medium and large-sized enterprises in China, with 2.748 million employees at the end of 2010, which achieved 15.76 trillion Yuan of purchased commodities, 17.43 trillion Yuan of commodity sales revenue, and 1.21 trillion Yuan of the ending inventory volume. From the perspective of economic benefits, the large and medium-sized enterprises achieved 15.72 trillion Yuan of main business revenue, creating 485.43 billion Yuan of total profits, with a 7.7% of main business gross rate.

From the perspective of commodity structure, the main business revenues in the fields of China mining product, construction materials and chemical product; food, drinks and tobacco product; textile product, clothing and daily necessities account for the largest proportion of wholesales business, while the gross rate of some wholesales business is relatively higher, such as the fields of drinks and tea, tobacco product, clothing, shoe and hat, sports product, book, Chinese medicine, Chinese patent drug, communication and broadcasting equipments, which all maintain the growth of over 10%.

Globally, independent wholesaler has gone through a tortuous development process, with a characteristic of "damping first and rising later", and the wholesales industry finally finds consolidate its position in social production and circulation processes. China wholesales industry can not only follow the general principles of wholesales development, but also makes changes according to Chinese characteristics, so it's development trend tends to be more complex. With the depth development of commodity circulation reform, the shrinking of wholesales has seriously restrained the efficiency of circulation, which has vetoed the judgement of "useless theory of wholesales". The efficiency and cost will finally replace link quantity, and they will become core yarsticks to judge whether the commodity circulation link is reasonable or not. China wholesales industry shoulders a mission to revitalize itself and form a cooperation system with a goal of working efficiently for production and retail links. The wholesales enterprises need to emancipate their mind, transform positively and utilize modern information technology and logistics equipment to better serve for manufacturers and retailers, so as to improve the overall circulation efficiency. Meanwhile, related departments of the government should correct the traditional policies toward wholesale structure adjustment, as well as positively guide the new development of reform and renovation in wholesales industry.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, China Customs, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Wholesales Industry