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China's Packaging Machinery Market Research Report - PMMI

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0.1 Domestic <strong>Packaging</strong> <strong>Machinery</strong> Vs. Imported <strong>Machinery</strong><br />

The chart illustrates the market proportion of China’s self-made and imported<br />

packaging machines in 1999:<br />

Domestic<br />

Products<br />

67%<br />

1999<br />

4<br />

Imported<br />

Products<br />

33%<br />

In the coming years of 2001~2005, the imported packaging machines are expected to<br />

hold a share of 40%~50%, and the domestic 50%~60%, according to the forecast of<br />

the Association of CPMI and the market research.<br />

At present, there are 1,600 local packaging machinery manufacturers, 25% of them<br />

are considered large with over 1,000 staff, 35% are medium ones with 300~1,000<br />

staff, and 40% are small ones with fewer than 300 employees.<br />

Factors Affecting Chinese End-users’ Purchase<br />

By and large, China’s end users take into account the following factors when<br />

choosing packaging machinery:<br />

• Price<br />

• Quality<br />

• After Sale Service<br />

• Compatibility<br />

• Brand<br />

• Durability<br />

• Easy Operation<br />

• Non-business factors<br />

Sales, Distribution, and Terms of Payment<br />

Seventy-five percent of domestic machines sold in China are done so through direct<br />

sales, with the other twenty-five percent sold during exhibitions, through agencies, to<br />

the government, and a variety of other channels. Conversely, imported equipment<br />

sales are largely completed through agencies and other third party methods. A

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