American Companies Eager Yet Cautious about Sourcing Products from China.

Concerns over facilitating transactions holding many back, survey finds; B2X platform can allay fears, provide key to unlocking vast, untapped resources

JERSEY CITY, N.J. -- B2X Corp.'s 1Q 2007 survey of American companies in a variety of businesses and industries shows many to be eager to source products from China -- provided they can find a reliable means of facilitating those transactions.

The study, conducted between January 15 and March 15, 2007 among more than 1,000 wholesalers and retailers in the furniture, textile, clothing, electronics and toy industries, found that much of executives' hesitation to source from China stems from concerns over the ability to manage the process.

For example, 25.7% of companies surveyed who have never been supplied directly by a Chinese manufacturer, or have done it in the past but have now ceased, expressed concern that they might not have the resources or expertise to find reliable manufacturers there.

In addition, 19.8% said they did not have the internal resources, the time or the experience to manage the import process, while 12.7% said the risk of not receiving quality goods within the necessary delivery time was too prohibitive. And 19.6% held to a belief that any savings gained on the actual delivered costs of the products would be out-weighed by the additional in-house costs required to source products directly.

Even given those concerns, however, nearly one-third said they were still "interested" or "very interested" in exploring ways of sourcing products directly from manufacturers in China without the risk and cost of being an importer.

That same one-third admitted to being "interested" or "very interested" in finding Chinese sources for their products quickly and efficiently in a secure, on-line environment from their offices - and that they would like to receive immediate delivered prices for products they might potentially purchase (including all costs right up to delivery to their distribution centers).

In addition, nearly 41% were "interested" or "very interested" in purchasing goods from China if the delivery and quality of the goods were guaranteed.

Among the survey's other findings:

- More than 30% expressed average or greater-than-average interest in learning about how to join a buying group of companies similar to theirs in other geographic areas of the United States in order to benefit from the combined purchasing clout (provided that their own identities and purchases were protected).

- Just under 28% said they would like to learn how to customize products manufactured in China by including their company's name and brand on both the products and packaging.

- More than a third (35.3%) admitted to being interested in purchasing goods from China if they could pay for them as if it were a domestic U.S. sale, with traditional U.S. business terms of payment.

- Virtually the same number (35.4%) are "interested" or "very interested" in having a trusted U.S. company provide all the procurement and logistics management required to deliver purchases from China to their doors with no additional charges or fees.

B2X Opens Markets

For these companies, the key to opening the vast, untapped resources available in China is B2X Corp.

B2X is a global technology company building a revolutionary platform to facilitate international trade. B2X delivers to users vital information needed to market, manage and ship products on a national or international basis.

Leveraging proprietary technology solutions, B2X plans to change the paradigm of international e-commerce by providing a seamless, secure, end-to-end environment to guide and assist buyers and sellers through each step of the complex, heavily regulated process of international import and export.

By establishing partnerships throughout the process chain, B2X will aggregate a simplified, turn-key solution that optimizes the economics of the import/export process, including customer acquisition, shipping, insurance, inspection and payment. The B2X platform will allow users to expand their global market, drive product sales, and securely manage the transaction process and enhance the business fulfillment process.

To request the complete survey, please contact:
Belinda Banks
SSPR
[e-mail]
908-685-2300