Brother establishes wholesale subsidiary in China

Brother Industries, Ltd. has announced that it has received an official permit from the Ministry of Commerce of the People’s Republic of China to establish a wholesale company – Brother (China) Ltd. – as a wholly owned subsidiary of Brother.  The wholesale company will be given the entitlement of import and export as well as the distributorship of the goods procured in China.

 

In China, it became possible for wholesale companies to be fully funded by a foreign company on 11^th December 2004 with the elimination of restrictions on foreign investment under “Measures for the Administration on Foreign Investment in Commercial Sector”, which were promulgated on April 16, 2004. Aiming for the earliest possible establishment of a wholesale company, Brother filed its application on December 11, 2004, the opening day when the Chinese government started to accept applications, with the process having been completed as quickly as possible.  As the result of thorough preparation, the Ministry of Commerce issued the permit on February 17, 2005, only two months after our application, and the official certificate was issued on February 25, 2005. 

 

Brother has so far been selling products in China through various channels such as licensed distributors and its own manufacturing subsidiaries.  However, as the new wholesale subsidiary, Brother (China), Ltd., will be given the entitlement of import and export as well as the distributorship of the goods procured in China, it will be able to centrally control sales of Brother products in the country.  By organising sales activities under the new company, Brother aims to enhance its distribution network, customer service and brand image in China in order to expand sales in rapidly growing information and communications products market and also in industrial sewing machines, of which China is the largest market in the world.  Brother (China) Ltd. will also handle external affairs, intellectual property, environmental issues and public relations and carry out our sales strategy in China.