Sample Case Study On Neiman Marcus Case Study

1. Aside from the reasons stated in the cases, why do you think Neiman Marcus decided to ship directly to customers in China, instead of from a warehouse in Shanghai?
Other than the reasons stated in the case, the other reasons why Neiman Marcus decided to ship directly to customers in China instead of from a warehouse in Shanghai is that it is better for the business to concentrate on online marketing. While online shopping has not yet reached its peak among Chinese consumers, Neiman Marcus recognized that the Chinese consumers’ taste for luxury goods would make them likely to shop online from foreign markets rather than spend on local stores. Moreover, while the direct shipment of ordered products from the United States to China will take a longer time and route to reach their destination, the transaction will not have to go through diverse local laws.
2. From your chapter’s reading, were there any unusual documents that Neiman Marcus’ had to fill out in maintaining a substantial inventory in China?
Based on the chapter’s reading, the luxury products of Nieman Marcus fall under the EAR99 category, and since it belongs to this category, the exporter is not required to secure a license to export. However, there are several documents that should be filled by Neiman Marcus other than the basic forms; one of which is the pre-shipment inspection forms, the purpose of which is to provide an assurance as to the value of the goods and for customs duty purposes as well. Moreover, the luxury goods exporter also needs to fill up the electronic export information filing (EEI) for its shipments above $2,500.