China : US cotton traders launch ‘charm offensive' to attract enterprises

After landing in China’s market, US cotton traders exploit their advantages of price, quality, marketing and other strategies clearly aimed at consolidating their position for future.

From such an advantageous position, China may not be able to compete with US, and a heavy overstock of cotton is very likely, again, fear industry insiders.

Leading US cotton companies are establishing or have set up offices in several main cities in eastern China recruiting local sales and even relocating overseas personnel, there.

In order to reduce delivery periods for Chinese enterprises and ensure spot goods selection prior to buying, since the end last year, the US cotton companies have quietly modified their cotton marketing strategy.

Cotton exports to China earlier, was a complicated processes (preparing a quotation, seeing sample, signing contract, making shipment, receiving goods etc.) that has now moved on to directly shipping to the warehouses in port bonded areas located at Qingdao, Shanghai, Tianjin, thus eliminating the cumbersome transaction process.

So now, it is more convenient to get imported US cotton than buying domestic produce.

After the initial hardsell, the US cotton companies began relying on their skilled marketing services and persuaded Chinese enterprises to use cotton produced by them.
Faced with such a US cotton industry's ‘charm offensive', some local experts point out at the emerging trends clearly demonstrate their success of strategy to suppress, control and gradually nibble in to China’s cotton markets.

Domestic cotton industry feels that local produce may not be able to withstand competition offered by imported cotton in terms of price, quality and marketing advantages that US cotton has. Thus, if Chinese cotton consumers discount on the time and quantity of cotton import quotas, a heavy overstock situation may emerge again, they fear.
 
Fibre2fashion, News Desk - China