2011年7月3日星期日

The importance of trading company to makeup brush manufacturer

All makeup brush manufacturers are eager to establish relationship directly with the end customers like MAC, Lancôme, and BB etc. It is understandable, as they can get more profits than through the trading companies or distributors.

While for some small and inexperience Chinese makeup brush factories, it will be better to sell their makeup brushes through trading companies. The main reason is as following:

1.       The language: for some small factory, they have no ability to employ experienced staff who know English well, which may cause misunderstanding on customer requirements during custom makeup brushes and then cause complaints or conflicts; while many trading companies have experienced staffs who are good at English or other languages, they can better understand customer requirements and express to the factory in local language, therefore, the factory can make the exact brushes according to customer requirements;
2.       the location culture: for example, the factory locates in China while the customer locates in Europe, due to the culture difference, even if they know the meaning of each other, sometimes they can not understand each other and may think the other side is ridiculous and crazy; while the trading companies, have been in international business for many years and with so many countries, they know the thoughts and habits of every country, so that they can get smooth communication with the customers;
3.       the market development: if the trading company locates in the area of the target market, it will be better for market development, they know the exact demand and market situation in that area and can exploit the market accordingly, it is the advantages which the factory can not compete and will greatly help the market development for the makeup brush factory.
4.       The risk taking: doing business with trading companies will reduce the risk of the factory, the factory just need to get payment, arrange production and send brushes to the trading company. They get payment directly from the trading company in their area, it reduces the payment risks; they only need to send shipment to the trading company, it reduces the shipment risks….

The above mentioned trading company is just a generic, it includes the trading company, the distributor, the SOHO etc, as long as they are not the end customer or factory, we can call them trading company.

Of course, if the makeup brush factory is large enough and experienced enough, it is surly better to do business directly with the end customers, after all, they can get more profits.

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