from CGCC

According to a report released by the China General Chamber of Commerce (CGCC) in May,louboutin pas cher, a total of 188.5 billion yuan in commercial losses, including those from theft, were reported in China in 2010. That amount is close to the cost of building the Three Gorges Dam. Theft accounted for 68 percent of commercial losses in 2010.
Cao Xiaonin, from CGCC, said the huge loss works against efforts to contain rising prices in China. "Theft loss will be calculated into retail prices," Cao said.

Suppliers send promotions representatives to stores and sell products directly to consumers. Peng said stores make a profit from this business method by charging suppliers 20 to 30 percent of the sales revenue generated in stores.

A supermarket in Fuzhou,louboutin chaussure pas cher, Fujian province. A total of 188.5 billion yuan in commercial loss,polo ralph lauren, including from theft, was reported in China in 2010. [Photo / China Daily]
"Retailers might ask suppliers to provide extra products for free or require discounts during the negotiation stage to cover the potential loss," said Peng Jianzhen,franklin marshall pas cher, vice-secretary general of the China Chain Store and Franchise Association. "Suppliers are forced to pay. They factor theft loss into wholesale prices. Ultimately, consumers will end up paying,ralph lauren pas cher," Peng added.
"Under the current method, retail stores will not take theft loss seriously because it does not cost them,christian louboutin pas cher," said Peng. "Companies will pay more attention to preventing shoplifters if they buy products from suppliers. They know that they will pay for the loss."

Industry sources say most of the cost would be transferred to suppliers and ultimately to end users. The effect of theft is much higher on suppliers compared with retailers. The CGCC report said that 42 percent of suppliers consider it a "hidden rule" of the industry.
According to the report, the average loss from employee theft was higher than that caused by external theft.
To reduce the loss from theft, Peng said Chinese companies should adopt a Western-style business model, which would make stores take theft loss more seriously. Unlike chain stores in foreign countries,franklin and marshall, most Chinese stores do not buy goods from suppliers.
According to Peng, some famous international companies are spared from sharing the costs. "The companies with strong market presence ask the stores to buy their products, and the stores sell them," said Peng. Some chain stores deny transferring their loss to suppliers.

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SHANGHAI - Businesses in China suffered losses of 128.4 billion yuan ($19.78 billion) from theft in 2010 and industry experts said that suppliers and consumers will end up footing some of the bill.

Vincent Ying, a spokesman for RT-Mart,franklin & marshall, said losses from theft are a part of the operating costs of the company. Theft loss accounted for 0.07 percent of RT-Mart's revenue in 2010.
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