Identifying the top retail chains in China where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.
It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
China is the world’s most populous country, with over 1.4 billion people as of 2023. Known for its long history, rich culture, and rapid economic growth, China is a major global power.
With a GDP per capita of approximately $10,500 USD in 2023, China’s economy is one of the largest in the world. It has transformed from a primarily agrarian society to an industrial powerhouse. Manufacturing, particularly electronics and consumer goods, is a key sector. Services and technology are also growing rapidly.
China’s main imports include electrical and other machinery, oil and mineral fuels, optical and medical equipment, and metal ores, supporting its massive manufacturing industry.
Major cities include Beijing, the capital and cultural center; Shanghai, the largest city and financial hub; Shenzhen, a technology and manufacturing powerhouse; Guangzhou, a major trade and industrial city; and Chengdu, known for its technology sector and cultural heritage.
As of 2023, the top supermarkets in China are led by Walmart China, which ranked first with a total sales volume of 109.31 billion yuan in 2022. Following closely are Yonghui Superstores and Kangcheng Investment (China), with sales volumes of 97.987 billion yuan and 92.012 billion yuan, respectively. These supermarkets are among the leaders in the Chinese retail market, contributing significantly to the industry’s growth and evolution.
In China, the online grocery shopping market is dominated by significant players like Alibaba’s Freshippo and JD.com. These platforms have revolutionized grocery shopping by integrating online and offline experiences. Freshippo, for instance, offers a unique model where customers can shop in-store or online with rapid delivery options. Similarly, JD.com provides a wide range of grocery items with efficient online ordering and quick delivery services. These companies have adapted to the growing consumer demand for convenience, variety, and digital shopping solutions, making them leaders in the Chinese online grocery market.
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If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
You should put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others: