Chapter 49 4. Looking forward to 2020: a circulation system

For China, the value of a smooth commercial society is even far beyond factors such as technology and capital. A future worth looking forward to is when we have a sound social security mechanism, a business environment that eliminates fraud, and a fair and efficient In the circulation link, it is tantamount to creating a circulation society. Low friction and low loss in this society are what China's commercial operations need most. Topic introduction: Why China is so expensive - the unspeakable secret - creating a circulation system In many people's minds, as the world's first-class developed country, the price of goods in the United States must be the highest in the world.

This view makes sense, because on paper, China's per capita GDP was $3,315 in 2008, while the US's per capita GDP was $46,859.Aside from such broad numbers, Americans make roughly 12 times more than we do, even in the same jobs. What does this ratio mean?For example, an ordinary white-collar worker with an annual salary of 40,000 yuan can earn nearly 500,000 yuan in the United States, while a senior white-collar worker with an annual salary of 100,000 yuan in China can earn a million yuan in annual income in the United States. If we earn more, things will naturally sell more expensively, and if we earn less, the price of goods will naturally be relatively cheap. Because of the previous comparison, it is reasonable to have such an idea.

However, what is the real situation? Let’s compare it with the most frequently encountered items in our lives. In the United States, the price of gasoline is $1.7 a gallon. If it is converted into liters, it is about 3.15 yuan per liter, which is almost half cheaper than the domestic price. In terms of food, the price of a gallon of skimmed milk is 4.4 yuan per liter in RMB, while the price of a liter of similar milk in China is actually 7 yuan. In addition to milk, the prices of foods such as meat and vegetables are Also generally much cheaper than China. Let’s look at clothes again. Many clothes that are regarded as high-end brands in China are much cheaper in the United States. For example, a pair of LEVIS jeans can only cost 19 dollars when they are discounted. Sell ​​for thousands of dollars.

What is even more puzzling is that many of the common products on the market are made in China, so this begs a question. Why is it that the final price of native Chinese products is much cheaper than that in China after a period of transportation and sales, and after several price increases? To reveal this mystery, we must start with the circulation of commodities and conduct a detailed investigation. For the same product, there is such a huge difference between China and the United States. In fact, there is only one reason for this situation—Chinese producers are willing to export the product.

Such a cause is puzzling to us. In fact, it is the existence of this mentality that has triggered a series of changes in the situation. Behind this mentality, there are factors that we can see through at a glance, and factors that cannot be understood by outsiders. "Unspoken rules". Let's talk about the former first. It is a well-known fact that in China's business environment, there is a huge amount of fraud, which means that many traders would rather pay the price of their reputation than pay in arrears in exchange for greater capital turnover space, which often leads to A situation where manufacturers lose all their money.

As a result, manufacturers have to be cautious when choosing traders, lest they fall into the trap of fraud, and such bad behaviors abound. In desperation, manufacturers can only mention the price again and again. It is hoped that through higher profits, the possible risk factors can be compensated. Conversely, exporting goods means a completely different situation.After the manufacturer signs the contract with the foreign businessman, it will never worry about the risk in this regard. With the letter of credit provided by the foreign importer, the manufacturer can directly go to the mortgage loan, and start production after the funds are in place. When the goods arrive, the accounts receivable will enter the financial account at the same time, and there is no need to bear such risks. Therefore, the manufacturer would rather sell the goods at a lower price, and is also willing to cooperate with a trustworthy and honest partner. cooperate.

The second reason for the price difference is efficiency. In China, due to the lack of public facilities, the logistics and transportation are greatly affected. In the transportation link, the highway tolls, gasoline fees, road maintenance fees, car repair fees, and fines are added together, and the high amount is enough Many low-profit commodities lost their money, so the helpless manufacturers and sellers had to increase the price of commodities in exchange for this part of the lost profits. If the inefficiency in the transportation link alone is enough to bear, in the warehousing link of logistics, the profit wear caused by the backlog, loss and high sales cost is even more clever. The existence of this status quo also makes The final selling price of the commodity is substantially higher than its actual value.

After talking about the dominant factors, the next thing is the unspoken rules of the merchants. In China, the same commodity is treated completely differently when exported and sold domestically.If the merchant chooses to export the goods, in addition to enjoying the preferential policy, he can also receive the export tax rebate given by the state. Therefore, many shrewd merchants make a big fuss here, selling products that should have been sold domestically. Commodities are labeled for export, and after being exported abroad for a round or more, they are then sold in the domestic market in the form of domestic sales. Before they go out and go in, they not only earn the difference in taxes, but also increase the price. Reached an unattainable new height.

Because of the existence of these three factors, it is not surprising that the price of the same commodity varies greatly. When we understand the reality, it means that we have found what we were looking forward to. Due to the existence of the above-mentioned three factors, in the past ten years, China's market has been overwhelmed with barriers, and the cost caused by the system and national conditions is extremely high. When we were suffering from sluggish domestic demand, we never thought about it. such a reality. Our people are consuming high-priced goods produced by ourselves with meager income.

From this, we believe that for China, the value of a smooth commercial society is even far higher than technology, capital and other factors. If we can automatically bridge the gap, the stimulating effect on the economy will be extremely huge of.And when the economy is in recession and domestic demand is insufficient, the value brought by circulation becomes even more precious. A future worth looking forward to is that when we have a sound social security mechanism, a business environment that eliminates fraud, and a fair and efficient circulation link, it is tantamount to creating a circulation society where low friction and low loss , is what China's commercial operations need most.