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China E-Site Goes Live Boosting Members' Access To China Market
How It All Began
Using a $180,000 grant from the U.S. Commerce Department, matched by $360,000 in association commitments, NPES The Association for Suppliers of Printing, Publishing and Converting Technologies has announced plans to develop the world's first online, multimedia, dual-language E-Commerce Distribution Network to serve the greater China marketplace.
Linda Conlin, Assistant Secretary of Commerce for Trade Development, joined NPES President Regis J. Delmontagne at a news conference in Chicago during GRAPH EXPO® and CONVERTING EXPO® 2002 to announce the grant. She noted that "NPES is exactly the type of organization government should invest in. NPES members represent the best in innovation and technology, exactly the sort of partner we want to work with. It's programs like these that allow small businesses to expand and enable others to enter foreign markets for the first time."
Delmontagne said the new system could boost the market share of U.S. companies in China by 10 percent over the next five years, generating up to $80 million annually in additional sales revenue.
"We believe the government-controlled sales and distribution channels which have dominated the Chinese market in the past have been a major obstacle to U.S. suppliers increasing their export sales in this huge market, which is potentially worth $1 billion a year," Delmontagne said. "Our research shows that e-commerce is experiencing significant expansion in China and promises to spur new private enterprise economic activity, so we feel that this is an excellent time to undertake this new venture." Delmontagne said NPES International Trade programs have consistently found that the most urgent need of small and medium sized businesses trying to enter the China market is for access to independent, reliable commercial agents and distributors.
"We're also convinced that China's transition from government mandated purchasing to free market commerce through open distribution channels will be slow and difficult," Delmontagne said, "unless United States private enterprise players, in partnership with our government, take strong initiatives to drive free market economic activity in China and assure Chinese compliance with the World Trade Organization trade agreement." NPES Greater China Project Director Ya-Ping Zhou reviewed the progress of Chinese trade and tariff reforms, noting "we believe conditions for international trade will be greatly improved within the next two years, and expect that the Chinese market for imported products will be fully ready within five to six years."
Based in Shanghai, the E-distribution system will strengthen links among U.S. suppliers of graphic media communications technologies and Chinese dealers, agents and distributors, as well as supporting dissemination of product information, technical training and product support, and flexible e-communication among those involved in marketing U.S. products in China.
The new project will include a new high-speed, broadband Internet platform based at its home office in Shanghai. The E-Distribution System will identify, collect, analyze and maintain information about Chinese agents, dealers and distributors and establish an e-channel of communications between these industry participants and U.S. suppliers. It will also adapt and translate product information of U.S. suppliers into Chinese, and entering this data into the new system. The E-Distribution Network will support online conferencing, training and demonstrations, and will provide ongoing centralized technical support and services online for established dealer networks. In addition, the system will be used to set up "e-dealer networks" and facilitate e-communication between Chinese distributors and U.S. suppliers, including networked meet-and-deal gatherings at both Chinese and U.S. trade shows.
The grant was awarded through the Commerce Department's Market Development Cooperator Program (MDCP), the same agency that provided startup funding for the launch of the NPES-sponsored U.S.-Sino Printing, Publishing and Converting Technologies Training Center in Shanghai in 1997. Ya-Ping Zhou's Power Point presentation of the E-Distribution System delivered at the Spring Board Meeting can be viewed here. For further details on the NPES presence in China contact the International Trade Department at 703/264-7200 or e-mail mhurley@npes.org
Photos
NPES Director of International Trade Mike Hurley pays a visit to Director of Shanghai Press and Publication Administration Director Mr. Sun to thank him for his support of NPES e-commerce distribution network and training center projects, and to discuss the future directions of the Chinese printing, publishing and paper converting industry.
