Exporting to China – distribution options and choosing a partner
http://ibprairies.org/?page=where-can-i-buy-optivar Finding an agent to distribute your export goods in China can be hard. Depending on which industry you are in there are a number of product distribution models to choose from.
follow site Some of these include;
1. Choosing an agent or distributor (multi-later regional agents, regional sole distributers or direct sales agents);
2. Direct supply to retailers;
3. Setting up a retail outlet;
4. Online sales;
5. Franchise operations; and
6. Setting up a wholesale or retail mart
As an exporter of new products to China, you will need to select a model that suites your business by weighing up the pros and cons of each. You will also need to consider factors such as your brand exposure, China coverage, associated costs, marketing, risks and logistics challenges.
Online shopping is certainly becoming very popular in China in more recent times, and is an important consideration for any brand owner in the China market. There are many advantages to an online distribution model but it cannot replace traditional sales channels entirely as Chinese consumers are particularly skeptical about new products, especially when they cannot see them before purchasing.
Once you understand your route to market, the next challenge is finding a partner or buyer. Some exporters may have experienced a scenario whereby they have been approached by a potential Chinese distributer at a trade fair or via email. Understanding this distributers potential is a difficult process and some exporters make the mistake of thinking this opportunity will give them exposure to the 1.3 billion people living in China – a highly unlikely scenario. Choosing a distributor must include a back ground check on their business, their potential and with consideration as to whether or not the represent the best route to market.
The China market is where all the big brands go to compete! Competing without breaking the budget is the challenge. Spending the budget and yet not being noticed is highly likely if you don’t do your research.