Company size and sales pattern

Most Chinese suppliers are small to mid-sized enterprises (< 100 staff). Around 80 per cent of the respondents reported annual revenue under US$5 mn. Correspondingly, most respondents' export revenue to LMICs is below US$2 mn per year.

Chinese suppliers export to LMICs through three main channels: 1. as Original Equipment Manufacturer (OEM)/Original Design Manufacturer (ODM) for global brands or NGOs; 2. via exporters and distributors (mainly connected via participating in-person EXPOs); and 3. through direct sales, either by responding to tenders or via e-commerce. Branded sales remain limited, with only 9 respondents (17 per cent) registering their own products in LMICs, primarily in Asia. Some larger suppliers have dedicated sales representatives for LMICs, but very few have local offices. Given this, Chinese manufacturers mainly deliver after-sales services either via local LMIC partners or remotely.

Overseas manufacturing in LMICs is also very limited. Out of all manufacturers who participated in the survey or interviews across 5 product categories, only two spectacles manufacturers have set up manufacturing plants in LMICs.

Survey respondents expressed strong interest in increasing their engagement in global public sector sales, and many have attempted to do so. For government tenders, most respondents indicated that they participate through local distributors or partners due to the need for local registration and government relationships. Regarding NGO procurements, suppliers tend to reactively wait for opportunities rather than proactively seek them out, given the fragmented and limited volume of NGO procurement.

For tenders like those from UNICEF Supply Division, while most suppliers are interested in responding, they face several challenges: 1. lack of awareness of such tenders; 2. limited understanding of the global market, leading to uncompetitive pricing; 3. lack of international standards required by UNICEF, such as ISO 7176 wheelchair standards or medical equipment certificates for hearing aids; and 4. inexperience in responding to public tenders directly, including unfamiliarity with the procedure, the level of detail required, the timeline, and the communication methods.

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