ServiceUpdated on 26 September 2025

Struggling with rising competition and fixed costs in your sales-subsidiary? We turn overhead into variable costs – and help you stay competitive.

Geschäftsführer at Silkroad24 GmbH

Braunschweig, Germany

About

Check out detailed article in attachment (German).

Many European industrial companies in China face the “involution” price war: shrinking margins, rising price sensitivity, and local competitors catching up. With only a sales subsidiary, you remain tied to German production costs and high fixed overheads in your sales subsidiary – an expensive model that relies on large margins, which are increasingly unsustainable.

Our solution: Transform fixed costs into variable costs.
Instead of carrying the full expense of offices, staff, warehousing, and back-office functions, these operational elements can be handled by an import partner. This model shifts the burden from fixed expenses to transparent, per-order processing fees, while the subsidiary focuses on its real strengths:

  • Strategic customer management

  • Technical pre-sales and after-sales support

  • Brand and market positioning

The benefits:

  • Lower overall costs: expensive overheads become lean, scalable, and tied to actual business volume.

  • Increased competitiveness: prices in China become more attractive without sacrificing quality or brand integrity.

  • Clear role distribution: subsidiaries focus on knowledge and brand work, while import partners handle logistics, payment, and standard inquiries efficiently.

  • No sacrifices in EXW-prices: We understand the challenges in material, energy, and staff expenses at the German HQ. So we cut costs by transforming outdated sales structures, not by cutting corners in quality, production or innovation.

This system shift doesn’t mean loss of control – it brings clarity. Subsidiaries retain pricing authority and strategic direction, while the operational workload moves to a leaner platform.

👉 With this model, European brands can remain competitive in China’s tough price environment – not by cutting corners, but by making their sales structure fit for the future.

Type

  • Manufacturing

Applies to

  • Building & Construction
  • Chemical
  • Environmental Technology
  • Healthcare and Pharmaceutical
  • Machinery & Engineering
  • Mobility
  • Mining & Natural Resources
  • Trade & Logistics

Organisation

Silkroad24 GmbH

Company

Braunschweig, Germany

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