Chinese supermarkets for dummies?

I used to own a store here in Buenos Aires, and while it wasn't a supermarket, I carried a lot of the products that Chinese Supermarkets do (Arcor). The markup on these items is an average of 30%, however once you pay ingresos brutos, IVA and ganancias, that profit rounds to about 20%. Chinese supermarkets generall have a lower markup on their goods than other stores so if they make money it's based on volume, of which most have plenty. It's VERY tough running a small business here, between the robberies, bribes you have to pay city government inspectors, constant price changing, bank fees, taxes, its not for the faint hearted and the Chinese are a brave and hard working group thats why they can stand it.
 
Bajo_cero2 said:
They come from Fuqing mainly

esllou said:
I think that's how most of us got here.

laughing.gif
 
bradlyhale said:
So, let's do-away with this notion that they come here, just work their tails off, and end up having a successful supermarket. It's such a (American) fairy tale, which is ironically really not even applicable in the U.S. As it turns out, the Chinese community in Argentina gets a lot of assistance from other Chinese residents in Argentina, their own government, and even the Argentine authorities. Just sounds so socialisticky though...

You are missinformated.

1. The local authorities prosecute them. The brand new immigration decreerthas a fine of 95.000 pesos per employed who is irregular. And as soon as they fine them, the deportation procedure starts. After 3 months the deportation order is enacted and they send police to arrest the "illegal" for deportation. I am defending many people under this situation.

2. Many stated has enacted laws that says that you need to be a citizen for open a supermarket.

3. They own government do nothing.

4. Chinese mafia is killing them every day if they don t pay 50.000 uSs, their own government doesn t help them even providing translators to the argentine justice.

They are new richs because they work like hell.

I only agree with you about the american dream is over in the US but it is still possible here.

Regards
 
steveinbsas said:
Is the profit margin in a supermarket in Argentina 40%?

To this former retailer that is unfathomable. Please elaborate

Yes, the prices are inflated, that s why the credit cards can give you discounts.

Chinese instead give you a good price. They are organizated and they buy like one. Remember the tomato crisis some years ago when farmers just wanted to get rich wothout working and they rise the price of tomato from 2 pesos up to 20? All Chinese supermarket rejected the tomatoes and the price falled to the real one.

For real prices you can go to Central Market.

Regards
 
Ashley said:
The brand of cat food I currently buy is 88 pesos for 2 kilos. The pet store only pays the supplier 40 pesos. That seems like a big mark up to me...

That s normal: Argentina is a small market with consumers who don t buy compulsively.

However, I thing that in the US is the same or worst. There they import everything from china, they don t pay custom taxes but they sell at American prices not at Chinese prices plus 5%. Am I wrong?

esllou said:
I think that's how most of us got here.

Ja ja ja

By the way, this is a map I used in a case to explain this subject:
MapadeFujian.jpg


Regards
 
Bajo_cero2 said:
The local authorities prosecute them. The brand new immigration decreerthas a fine of 95.000 pesos per employed who is irregular. And as soon as they fine them, the deportation procedure starts. After 3 months the deportation order is enacted and they send police to arrest the "illegal" for deportation. I am defending many people under this situation.


I'm not sure who is fined $95,000 pesos, the employer or the employee?

What can happen to a non resident foreigner who operates an unlicensed business and "employs lots of expats" (en negro)? What can happen to the employees?
 
Bajo_cero2 said:
You are missinformated.

1. The local authorities prosecute them. The brand new immigration decreerthas a fine of 95.000 pesos per employed who is irregular. And as soon as they fine them, the deportation procedure starts. After 3 months the deportation order is enacted and they send police to arrest the "illegal" for deportation. I am defending many people under this situation.

2. Many stated has enacted laws that says that you need to be a citizen for open a supermarket.

3. They own government do nothing.

4. Chinese mafia is killing them every day if they don t pay 50.000 uSs, their own government doesn t help them even providing translators to the argentine justice.

They are new richs because they work like hell.

I only agree with you about the american dream is over in the US but it is still possible here.

Regards

First, I never referred to illegal workers; Second, I never said Chinese citizens were breaking any laws; Third, "They own government" does care, as it has sent representatives to meetings regarding the so-called "Chinese mafia" and their attacks on owners of supermarkets.

And, as I said above, the Chinese government does provide loans to some of its citizens here. My partner is in frequent contact with an importer here who is Chinese and told him as much in the past.

My point was that no one in any country gets ahead solely on her/his own accord. We get helped along the way, whether it be in the form of the public education, our parents, our friends, or even government loans.
 
steveinbsas said:
I'm not sure who is fined $95,000 pesos, the employer or the employee?

What can happen to a non resident foreigner who operates an unlicensed business and "employs lots of expats" (en negro)? What can happen to the employees?

The employes get an ultimatum to reguralize in 30 days or the deportation process begings. After 3 months the deportation order is enacted. I am not at the office right now but i can scan one tomorrow and upload here.

The employer get the fine of 95.000 pesos per employed. However they offer some kind of plea bargaining for 14.000.

Both situations can be solved because this decree is against the national constitution but it has to be litigated at Federal Court.

Regarding employeds, my strategy is to go for citizenship because then they are under federal jurisdiction and the Immigration Office can t do anything.

Regards
 
bradlyhale said:
First, I never referred to illegal workers; Second, I never said Chinese citizens were breaking any laws; Third, "They own government" does care, as it has sent representatives to meetings regarding the so-called "Chinese mafia" and their attacks on owners of supermarkets.

And, as I said above, the Chinese government does provide loans to some of its citizens here. My partner is in frequent contact with an importer here who is Chinese and told him as much in the past.

My point was that no one in any country gets ahead solely on her/his own accord. We get helped along the way, whether it be in the form of the public education, our parents, our friends, or even government loans.

My idea wasn t to offend you.

Well, the thread was about chinese supermarkets. They don t have official help.

There are about 120.000 chinese and 100.000 of them are in an irregular immigration situation.

I am attorney of the chinese comunity, so the info i posted is first hand.

China for sure supports importing companies because they buy all the food they can.

They help each others inside the family, they have huge families.

The dificulty about the chinese mafia is that it is different than italian. Mainly, they are people who just arrived with no family and no money, so they do crime until they have enough money for buying supermarket/s and then they continue working legally. I had many consultations about people that did that and after they got enough money they just settle down and now they have family.

So, it is complex and it is a mistake to talk about chinese, there are huge differences among people from Fujian, Taiwan, Shangai, etc.

They point is that in this country almost everybody has to do it by their own because the access to credit is too difficult and risky. Argentine managers assert very proud that they have zero leans with banks.
Regards
 
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