Distribution and Logistics of Skiing Equipment in the Chinese Market

This report provides an in-depth analysis of the supply chain and distribution of skiing equipment in the Chinese market. It begins with an executive summary outlining the key challenges and opportunities. The introduction emphasizes the importance of supply chain and logistics management in ensuring profitability. The report then delves into the skiing industry in China, highlighting market trends, the influence of equipment functionality, and the growing consumer demand. It examines the political, legal, and cultural factors affecting the market, including business regulations, product certification, labeling, and packaging requirements. The report also details the logistics rationale, including customer satisfaction and cost-saving measures. Furthermore, the report includes discussions on critical documents like pro forma invoices, commercial invoices, certificates of origin, and packaging lists. The conclusion summarizes the key findings and provides a memo to the stakeholders. The paper also includes references to support the research.

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Global supply Chain Management 2
Executive summary
In the modern dynamic market, consumer demands are highly fluctuating as consumers are
getting more educated which has led to discriminatory strategies while buying products. Product
manufacturers are faced with the challenge of ensuring correct quality and quantity are produced
and made readily available to the consumers at the right place and at the correct price. Failure to
attain these provisions, it will lead to the company losing revenue to the competitors. Costs
incurred for moving products to the market is a complicated calculation that can be used to
derive a competitive advantage in the market when it is optimized.
For skiing equipment, supply chain and distribution activities form an integral form in ensuring
the profitability of the manufacturing firms. This paper has evaluated the distribution and
logistical processes in supplying skiing sports equipment to the Chinese market. The market is
currently experiencing the influence of equipment functionality and the trends in the sports
industry. The trends in the market have placed more emphasis on the manufacturers' ability to
supply the equipment to the market at the right time and at the correct price. Skiing products are
highly profitable during the on-season, particularly in the winter.
The paper will critically analyze the product market in China, legal, political and the cultural
functionalities that affect the market. The paper will also delve into highlighting the regulatory
requirements as well as the logistics rationale required during the distribution process.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................5
Skiing industry.............................................................................................................................5
China................................................................................................................................................6
Political impact............................................................................................................................7
Legal impact................................................................................................................................7
Culture.........................................................................................................................................8
Business regulation..........................................................................................................................9
Product certification.....................................................................................................................9
Product labeling...........................................................................................................................9
Product packaging.....................................................................................................................10
Pro forma invoice......................................................................................................................10
Commercial invoice...................................................................................................................10
Certificate of origin....................................................................................................................10
Packaging list.............................................................................................................................11
Logistics rationale..........................................................................................................................11
Increase in customer satisfaction levels.....................................................................................11
Saving costs...............................................................................................................................11
Conclusion.....................................................................................................................................12

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Memo.............................................................................................................................................13
References......................................................................................................................................14

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Introduction
Supply chain management and logistics management highly influence the profitability and
survival of firms while mismanagement may lead to losses and can lead firms to close down. It is
no different to the firm producing skiing equipment because of the distribution balance required
in the distribution of the equipment and monitoring the on season so as to ensure productivity in
the market. A properly managed supply chain and logistics channels lead to the reduction of the
amount of cash used in the supply chain. The supply chain will encapsulate all activities that are
involved in supplying activities of the skiing equipment, (Waters & Rinsler, 2014). To the
Chinese market, there are numerous variables that affect supply chain management and the
distribution process. the government has laid down numerous regulations to govern the booming
market of skiing equipment. With a skiing population of 13 million people, China is among the
largest markets in the world.
Skiing industry
The skiing sports gear market is a vast market covering both professional athletics and customers
buying the equipment for leisure. In China, there are a few firms occupying the bulk market
share. They mainly derive their market competitive advantage from the brand name they have
built over time and the revered they have obtained from the popular culture of the skiing
activities in the country, (Hayashi, Nemoto, & Nakaharai, 2014). The popularity of the skiing
sport on its own has offered a vast market potential for the firms. The industry has offered
platforms for the firms to obtain large profit margins, however, the profitability of the firm is
dependent on its brand and market share, economies of scale and the overall market penetration.

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The firms normally pay close attention to supply and logistics functions such as product
promotion, R&D, product distribution, and overall merchandising of the product.
In the 19th century, the industry gained popularity around the world. This was mainly due to the
affordability of the skiing equipotent which led to a large population to start experiencing various
sporting activities and become involved with skiing for leisure. Cross-country and downhill
skiing led to the formation of a segment resort within the market.in china, there are nearly 250
resorts involved in skiing activities. They are the main players in the market in china
commanding nearly 70% of the total market. Most of the resorts are located in the northern part
of the equator near the Liang province. This is due to their closeness to the skiing places mostly
in the nearby snowed mountain.
The winter sports pioneers created an industry that they viewed to be composed of various
functions such as production and product retailing, and the resort development and enhancing
tourism in the place the sport is being practiced, (Yu, Wang, Zhong, & Huang, 2016). They also
understood that the skiing business was involved closely with the mother nature due to the
success of the business dependence on the quality of snow as well as the overall quality of the
industry in a particular season. Snow levels are highly influential in determining the business
conducted in a ski resort and if it can stay open.
China
There are 250 ski resorts across the country and the long-term market expansion potential is
extremely robust although the market has not fully developed and there is difficulty in accessing
the resorts using the public transportation system. the largest resort is the Haarbin Yabuli Ski
Resort, it is 75 miles from an airport which is a 2-hour flight from Shanghai. The resort has

Global supply Chain Management 7
hosted third Asian Winter games. Foreign resorts are venturing into market share in the Chinese
market, (Mangan & Lalwani 2016). These resorts offer a vast market opportunity to the firms
producing the skiing equipment. This has been exponentially expanding due to the higher
number of customers buying equipment after gaining necessary experience skiing on the nearby
hills and the4 opening of accessible resorts.
Chinese athletes first participated in international winter games held at Lake Placid, New York in
1980. Since then, there has been a positive trajectory in the growth of the skiing industry in
china. In the 1990s, the country experienced 300 skiing tourists, at the turn of 2000, the country
received over 300,000 tourists with a high number experienced in 2006 with 3 million tourists
visiting the country, (Connelly, Ketchen, & Hult, 2013). However, the country did not witness
growth in the purchase of equipment with only 10,000 sporting equipment sold in 2006.
Political impact
Political stability and market activities, as well as economic growth, are closely related. An
unsteady political atmosphere may highly decrease the overall economic development as well as
hinder market accessibility. Furthermore, weak economic developments contribute to the
weakening of the government which may fail and ultimately leads to political instability.
Political protests experienced in the Asian continent over the years has greatly affected the
democratic progress in the continent. China is still dogged by political protests with a current
Hong Kong protest highly affecting the skiing market in china. This has led to a disastrous
business activity in the Hong Kong market. However, with its strong economic development
with stable political stability in most parts of the country, firms are able to enjoy a conducive
working environment.

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Legal impact
The skiing industry is closely dependent on mother nature. All activities involved with the skiing
and sporting activities are dependent on the provisions of mother earth. The chines government
has strong policies and regulations that monitor environmental degradation and highly encourage
the conservation of the environment. This calls for firms to ensure the production of high-quality
products and adopt supply chain processes that will be gentle with the environment, (Seuring &
Goldbach, Eds. 2013). In the recent past, the government of China has penalized nearly 30, 000
firms during an environment conservation campaign against any form of environmental
violation. The federal government departments have partnered with other local government
agencies in running the campaign across all 30 provinces. The ministry of environment has
formulated a regulation that will run the campaign every two years in its efforts to conserve the
environment. This has led to business to strategize and come up with ways to conduct their
supply chain and distribution processes while conserving the environment.
Logistics and the distribution process will be highly affected by market compliance regulations.
This is essential in order to avoid the financial and possible legal penalties that will be imposed
by the government, (Quanyu, Tong & Leonard 2013) It is imperative to follow the compliance
provisions in the country which is essential in eliminating the compliance risks that most
companies face. Firms producing the skiing equipment, involve third parties in the form of
retailers in order to reach to their customers. China has set out numerous contractual
requirements regarding the terms in the contract.
Culture
China is just emerging from a communistic rule with the society rooted in filial piety, skiing and
various other sporting activities such as yoga has encouraged the large population to take deep

Global supply Chain Management 9
interest in their health. However, the high prices of skiing equipment have limited the number of
people taking part in it as a sporting activity or for leisure purposes. Nonetheless, the rising
emphasis on self-care among the youth has encouraged them to take active part in the skiing
activities and other sports that improve their overall health. Skiing keeps people engaged in
outside activities and keeps them moving which provides a life balance and has encouraged
internal tourism from the conservative population.
Business regulation
China has classified the importation of products according to its good harmonization system. the
importers are required to a clear and complete description of the products for proper decisions to
be made while imposing the tariffs and regulations regarding the product. however, some of the
tariffs can be challenged in the Chinese international trade tribunal court.
Most of the sporting apparels imported to china are favored by the tariff imposed although goods
from given countries having interstate business agreements with the Chinese government receive
tariff exemption. Other firms can navigate tariff exemptions by ensuring proper certification of
the goods being shipped to China and also meet the direct shipment criteria, (Zhao, Huo, Sun, &
Zhao, 2013). The government requires clear labeling of the country of origin for all goods.
Failure to meet this specification might see the goods refused from entering the Chinese market.
The government is levying tariffs on freight on board value of the imported goods which can be
ad valorem or specific tariffs.
Product certification
The standardization council of china offers advice to the firms on the required product testing
and the organizations accredited by the government to conduct the services.

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Product labeling
With the population of china becoming bilingual, product packaging and labeling requirements
are critical to all goods allowed onto the market. Products are required to be labeled in mandarin
language and English. The labeling on the product should reflect the following information; net
quantity, identification of the product, the name of the product dealer and the principal place the
business will be conducted, (Copacino 2019). The label should also indicate the minimum
quantity required of the product.
Product packaging
The use of canvas, sacks, bags and similar packaging materials are prohibited in some of the
provinces in China. Products from one shipment are required to be indicated on the package and
its number indicated on the outside.
Pro forma invoice
The pro forma invoice is utilized in the absence of a commercial invoice required during all
importation processes. The pro forma invoice is usually used when the goods involved are less
than $1000
Commercial invoice
The invoice is used for all goods with a freight on board value going beyond $1000. The
commercial invoice must include all information required to successfully carry out the
importation practices, (Meindl 2016). The invoice can be prepared by custom broker, goods
supplier or the importer of the goods.

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Certificate of origin
This is required for tariff treatment that can be claimed in the custom coding form
Packaging list
This is optional. It does not have a standardized format; however, the form should contain
content of the shipment- product dimension, net gross of the products, number of items,
quantities, and the model number.
Logistics rationale
Increase in demand and market expansion for skiing products has made the transportation of the
apparels to become increasingly complicated. This has led to the call to have a robust and
efficient logistics management. in order to witness success in the Chinese market, it is important
for the firm to have optimum logistics management which directly impacts its bottom-line,
(Schönsleben, 2018). Moreover, meeting varied customer demands and the provision of high-
quality goods and services are among the aims of proper logistics management. Proper logistics
management is beneficial to the firm through the following ways
Increase in customer satisfaction levels
In the modern business environment, it highly crucial to establish visibility in the company’s
supply chain, (Fernie & Sparks, Eds. 2018). Proper logistics management can be used to process
distribution data in order to help the firm optimize its operations and avoid disruption of the
distribution process. logistics enable the products to be moved efficiently with the firm gaining
operational insight.

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Saving costs
Proper management of logistics practices will enable the firm to have control over its inbound
freights, monitor inventory levels an keep it at optimal levels, have a proper organization of the
reverse flow of goods and effectively organize utilize the shipping moves of the mode of
transportation, (Bing, Bloemhof, Ramos, Barbosa-Povoa, Wong, & van der Vorst, 2016).
Conclusion
Overall, this paper has addressed supply chain management and logistics management that is
required in supplying skiing apparel to the Chinese market. The paper has critically analyzed the
skiing industry and its market in china having the potential for expansion. The paper has
addressed political, legal and cultural practices and their general impacts on the supply chain
management and product distribution in the country. Available regulations and market
requirements set by the government as well as other regulatory bodies have been discussed
especially the tariffs and the rules that have been set to manage the market.

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Memo
Importing is among the effective way a firm can acquire cheaper supplies in the market which
reduces the overall costs increasing the competitiveness of the business. It can lead to the firm
producing large quantities of canned paint at affordable prices to increase the possible profit
margin. However, there are a myriad of issues and risks that are involved during the importation
process. the firm needs to avoid these issues as much as it can.
Importing products from the outer market is always associated with risks or regulations that the
CEO is not aware of. The risk of confusion that can be derived from the misunderstanding can
highly affect the business making the firm incur extra cost. There is also an issue of a country
introducing regulations that can affect the importation of the cans. However, the firm can
manage these risks are manageable through proper market research.

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