For a lot of products working with a local sales agent or with a dedicated sales representative can be a good solution.
Especially if you have a customized product or service, or you want to work with a number of resellers in the country, an agent can be the one connecting these parties to your organization abroad.
Agents can be individuals, but I often recommend to work with established companies who already have a good network and where you are not dependent on just one person.
Our local consultant will help you find the agents or representatives or for limited target groups we can be your agent!
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.
In the past decade, Chinese companies have evolved to cater to the demand of the global market. In order to do this, they have rapidly grown in all aspects of business, especially product distribution.
Entrepreneurs that are new to China may find the Chinese market challenging, albeit the vast opportunities waiting for them. If you intend to introduce a brand into China, then what are the methods to successfully penetrate their market? How can you start product distribution with as little blunder as possible?
The competition within the Chinese market is stiff due to the continuous development of their business industry. However, local Chinese businesses are more open to newer and more innovative business strategies which may be introduced by foreign players, making it easier for international businessmen to participate.
The Chinese have a slightly different approach to their marketing practices. Western companies that employ multinational staff have greater awareness about the power of marketing than Chinese local offices that often employ student returnees and expatriates.
Out of the 4 P’s (Product, Price, Place and Promotion) of marketing; most Chinese businesses consider promotion as the only element necessary in marketing. Western entrepreneurs have the edge since they are accustomed to all.
Westerners place more emphasis on pricing and believe in indulging in comparative studies to identify the best pricing strategies for their products. However in China, products that are promoted well tend to sell better. Hence, for a western businessman to succeed in the Chinese market, it would be beneficial for him to develop a local sales team that is proficient in promotional aspects of the business as suited to the Chinese consumer base. Networking and local alliances can be helpful as well.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
With Trip.com you can compare flights and also book your hotel.
Hotellook compares different hotel sites so you always have the best rate.
Localrent connects you to national rental car providers per country.
If you don’t want to work with agents, you can always set up a local office yourself or try to sell your product from abroad. This all depends on the product or service and the ease to reach the right buyers. Be careful with the contracts that you close with agents. In many countries their status is well protected and you can’t take their recurring income easily away from them.
I always 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.
