The operating characteristics of wholesale business

1. Bulk transactions and bulk pricing. Wholesale transactions generally have to reach a certain transaction size can be carried out, usually have a minimum transaction volume requirements, retail transactions do not have this limitation. As a result, wholesale transactions, compared with retail transactions, the average volume of each transaction is much larger. Wholesale transaction volume regulations have its economic significance, that is, the price of wholesale transactions is often inversely proportional to the volume of transactions. That is, the wholesale transaction volume is large and the wholesale transaction price tends to be relatively low. Wholesale transactions per transaction volume can be relatively large because wholesale transactions are aimed at various types of users, rather than a broad and dispersed final consumer.

2. Wholesale commercial transactions of goods still remain in circulation. Because the object of wholesale trade is all kinds of users, especially commercial users (or re-consumers) and industrial users, they buy goods not for their own final consumption, but for further resale or processing. Therefore, through wholesale trading activities, commodities have not yet finally entered the field of consumption, but mainly remain in the field of circulation. This is the essential difference between it and retail trading.

3. Wholesale business transactions between the two sides of the purchase and sale relationship is relatively stable. This is so, because the object of wholesale transactions are relatively fixed, less change. They are some specialized operators and users, unlike the object of retail transactions as consumers, the purchase of random behavior, emotional or impulsive purchase accounted for a large proportion. Therefore, it is easy to stabilize the relationship between the two sides in wholesale transactions.

4. The scope of wholesale business transactions is relatively wide. Here are two main reasons: First, the object of wholesale transactions from a wide range of sources, it has a "commercial users", "industrial users" and "business users" 3 types of buyers, unlike retail transactions, only one type of purchase. Unlike retail transactions, there is only one type of buyer, the final consumer. Secondly, the number of wholesale trading organizations is relatively small, unlike retail outlets which are located everywhere. Such a small number of wholesale organizations often means a large coverage of services.

5. Wholesale business towards specialization. Throughout the world the status quo of wholesale transactions, wholesale transactions in the direction of specialization has become a major trend. The reason for this is mainly due to the modern society, a wide range of commodities, the purchaser's selectivity is becoming more and more obvious, in order to adapt to and meet the needs of various types of user purchases, wholesale traders must have sufficient supplies, that is, the business of the product items are more, color, specifications, models and so on, in order to select the purchase of the use of the more complete. As a result, the wholesale specialization is becoming increasingly obvious. In the WTO accession five years in the market competition, the wholesale of commodity circulation function and the role of the trend is more and more obvious, mainly manifested as follows:

One of the reasonable circulation of commodities distribution function and commodity demand for information transfer function is irreplaceable, almost all the wholesale enterprises will be the transmission of information as a key element of the development of corporate survival, because the wholesale industry has to promote the upstream production link product structure of the effective adjustment and downstream retail business varieties. Adjustment and downstream retail business variety of structural adjustment of the function and role of any other links can not be replaced;

The second is the small and medium-sized retailers to provide low-cost, complete commodities and distribution services to support the role of irreplaceable;

The third is on the production, modern logistics or distribution, to take the road to a new type of industrialization, employment and other related industries, the driving force of the development of irreplaceable. To small and medium-sized wholesale enterprises in the most active place - commodity exchange market as an example: first of all, the larger commodity exchange market with its more varieties, lower circulation costs, higher circulation efficiency, should be the majority of small and medium-sized enterprises and individual, private enterprise business activities, by the small and medium-sized wholesale enterprises, such as small commodities known as Yiwu, by 2005, the number of small and medium-sized enterprises in Yiwu, the market has increased by more than 20% in the past year. Yiwu, to 2005, in Yiwu commodity trading market engaged in wholesale transactions of more than 500,000 people, driving the Yiwu City, more than 20,000 small commodity manufacturing industry, driving the Yiwu surrounding areas of small commodity manufacturing enterprises more than 40,000, driven by industrial employment of more than 1 million people, not only reflects the function of distribution of the commodity trading market and the interaction of the small commodity manufacturing enterprises, but also fully reflects the circulation of the industry to drive the economic development of the vitality. The vigor of the market is also fully reflected in the economic development of circulation-led industries.

Secondly, large-scale commodity markets with distribution functions have become China's unique new form of circulation organization with their industrial cluster effect, undertaking many functions such as market information feedback, price discovery, commodity display, procurement and distribution, technology research and development, domestic and foreign trade, etc.

These markets have become China's unique new form of circulation organization.

Once again, the interactive development of commodity trading market and industrial clusters has not only led to the development of various modern business modes and diversified circulation organizations in the market economy, but also combined with the characteristics of China's economic structure during the period of transition and the requirements of the development, cultivated a large number of wholesale business professional managers and professional management personnel who know how to operate in the market economy, who are actively practicing and exploring new circulation modes with the characteristics of low-cost and high-efficiency, and have become the unique new form of circulation organizations in China, These people are actively practicing and exploring new circulation methods with low cost and high efficiency, and at the same time, they are creating conditions for establishing national industrial brands. Although the role of wholesale business in economic development cannot be replaced, it is not without problems in the process of development. At present, the wholesale business in the development of the main problems are:

1, wholesale business infrastructure lagging behind; wholesale transactions, most wholesale industry is still inherited from the traditional high-cost trading methods, trading supply and demand information feedback lagging behind the low utilization rate of the market forecast;

2, wholesale trading operations and management, the application of modern marketing technology lagging behind the lack of modern wholesale business operations and management professionals, the lack of a unified wholesale business operations and management. Management professionals, the lack of a unified industrial chain planning layout;

3, wholesale business in the circulation of the social status and function of the economy has not been due attention, and even mistakenly believe that all the wholesale link is the main factor leading to the rise in circulation costs, and then the phenomenon of heavy retail, light wholesale.