China's Packaging Machinery Market Research Report - PMMI

Multinational
16%
I&E Company
4%
Offices
12%
Exhibition
3%
Factory
3% Tender
1%
58
Agency
61%
Note: Exhibition accounted for a higher percentage of 10%-15% in the 1980’s. This
was due to fewer contacts between the end users and manufacturers resulting from
the difficulty in communication. The number of the transactions over the exhibitions
decreases in the 1990’s when the users were able to contact the manufacturers both
at home and abroad through much more diversified channels. Despite the decline
exhibition is still useful in collecting information and advertising.
11.2 Terms of Payment and Delivery
11.2.1 Domestic Suppliers
(1) Terms of Payment
The usually acceptable ratio for domestic manufacturers is 30%: 60%: 10%, 30% as
deposit from the customer, 60% after delivery, and 10% paid after the satisfactory
testing.
Customers request postponement of the larger part of the payment until after the
installment and testing for fear of quality problems. Manufacturers hold an opposite
desire for the sake of profit.
(2) Delivery
On the whole, delivery by domestic manufacturers is within 1-2 months in the case
of a complete assembly line. With regard to part of the assembly line with
comparatively smaller value, delivery is expected to be quicker, and most probably,
the manufacturers have ready stock.