mercredi 18 janvier 2023

Sharing experience working with Chinese Dealers

We got you covered here; we have 10 years of experience working with Chinese Dealers, and will avoid you waist too much time in research, sharing you here our top 2 don’ts or problems:

watchin this video maybe first 

NEVER  send emails

Chinese distributors never read emails. NEVER

Emails in China are part of history.

We can see your surprised face from here. How do they communicate if they don’t use emails then?

The magic word: WeChat

WeChat is a social platform launched in 2011 by the Chinese company Tencent. This "super app", which is very popular in China, offers a multitude of functions to its users as well as to companies: instant messaging, exchange of audio and video content, payment by telephone, geolocation services, online store, blog, etc. Thanks to mini programs integrated in WeChat, the user can do everything on the web, without having to leave the application.

It is so integrated into Chinese society, that going out without your phone/WeChat would make your life almost impossible.

Above all, WeChat is the number one way to communicate with you Chinese friends, family, coworkers, Business Partners…everyone in your Chinese life use WECHAT 

 The Super app is always at your best friends for connections between Chinese people easy.

The distribution of WeChat users by age

22.3% of users are under 24,

13.7% of users are between 25 and 30 years old,

22% of users are between 31 and 40 years old,

19.2% of users are between 41 and 50 years old,

22.7% of users are over the age of 51,

98.5% of people aged 50 to 80 who have a smartphone in China use WeChat.

If you come to China and meet new people here, the first reflex for them is not asking for a business card but adding you on WeChat to keep in touch.

You can easily understand that if you don’t have a WeChat, you will be seen as an alien.

Stop using emails now, what you urgently need now is a WeChat account.

Don’t Reply or reply too slow

Chinese distributors expect a fast reply. 

We know that each country/culture has its own conception/vision of what is considered a fast or a slow reply.

No matter your origin, if you ever come to China, you would be amazed at how fast things go here. Not only in terms of development, but also in terms of responsiveness to all kinds of services.

Same with customer support, live chat is everywhere, if you have any questions, you have always an instant reply.

When you communicate on WeChat, people answer instantly as well (unless they are busy).

lundi 26 décembre 2022

How to find and deal with Vietnamese Distributors

 Vietnam is a booming Country 

These are some tips to keep in mind when working with local distributors

Check that your distributor is able to manage your local sales before you sign up for partnership. Before you sign up for a partnership, here are some key points.

Capabilities in the logistical and sales networks

A distributor must have sufficient distribution channels to be able to sell enough products. It is also important to know the retailers to which the distributor sells the products.

These items must be included in the distribution agreement. They include the number of shops they have/sell their brands to, current brands they distribute, typical customers, and the annual sales volume.

You should check if the distributor is active on local eCommerce platform. Also, look at buyer reviews and delivery times. Also, make sure to review the warranty and customer service.

Certain products may require special storage conditions. All products require cold storage. International companies should also make sure that their local distributors are qualified to supply these facilities to end-users.

Geographic coverage

Distributors may be focused on specific regions. This is particularly true for larger countries like China and Vietnam. Before a distributor can be selected, it is necessary to conduct a market analysis.

To plan the most effective market penetration strategy, companies must have a good understanding of the market. This includes an in-depth knowledge of the market, including consumer trends and applicable regulations. This can be done by either accessing public data or consulting a professional market research agency that is familiar with the local market.

It is a smart idea for foreign brands to partner with local distributors if they are looking to establish a Vietnamese presence. This can lead to a lower initial investment, lower compliance risks, and the elimination or creation of your own sales and marketing department.

It is important that you point out the disadvantages of working with distributors. Every additional layer between the manufacturer and consumer reduces profit margins.

Although distributors may have the experience and networks to generate immediate sales, they might not be in your best interests. This could cause problems if the distributor already sells one of your competitors' products.

Before you decide on a distributor, make sure to check their sales and marketing skills. This includes reviewing sales history and creating a waterproof contract.

It is not easy to manage registrations and it can make it difficult for you to sell your products locally. To ensure all paperwork is in order, both the seller and distributor must manage the registration process.

There are some disadvantages to working with local distributors

While there are many advantages to working with Vietnamese distributors, you should be aware of potential disadvantages and risks. Let's take a look at some of the most well-known ones.

It is difficult to control the sales process.

You have no control over marketing, sales, customer support, warranty activities, and partnership with a distributor. You need to be in close contact with your distributor to maximize sales and meet consumer expectations.

Distributors often don't meet their expectations, regardless of whether they are acting intentionally or not. Distributors may demand exclusivity or deliberately keep sales volumes low to benefit other brands. It is important to set minimum sales quotas on a quarterly basis, in order to avoid these situations.

If you only work with local distributors, and don't have a direct relationship to retailers, it can be more difficult. It is easier to assume the role of retailer if the distributor does this. This is especially true for B2B products, as well as non-FMCG products. Manufacturers have greater visibility into sales processes and more negotiation power.

source Gma-Asia

mardi 12 avril 2022

The distribution in Asia, China ahead

 The Asian continent appears in many respects to be the new eldorado of mass distribution. Major global groups such as Walmart, Carrefour, Lidl, or even Auchan and Casino, devote enormous resources to conquering new markets. But the expansion of large retailers is also synonymous with new threats to food security in the region. Concentration and closure of small businesses, farmers supplanted by agribusiness, loss of quality and diversity, sudden change in food patterns and new health risks... According to the Auchan, the massive arrival of supermarkets is leading to a loss of control of Asian populations over their food and agriculture.

Big brands are growing faster in Asia than anywhere else on the planet. And, as supermarkets and their supply chains expand, they capture revenues from traditional food systems and therefore take them away from farmers, small-scale food producers and traders. They are also increasingly influencing what people eat and how food is produced.

"The traditional market has its roots in the community," says Suresh Kadashan of FDI Watch India, who has worked with ... hundreds of street vendors in Bangalore over the past 15 years. “Where are all these people going to go if they lose this place? Shopping centers will be very far from being able to hire all of them as employees. » say

Asia continues to rely on traditional food systems for most of its supply. But over the past decade, the arrival and aggressive development of multinational agribusinesses, beverage companies and supermarket chains have had a significant impact on farmers, food workers, Asian traders and consumers.

New regulations in China 

Relying on various trade and investment regulations, such as food safety regulations, these multinational food retail chains crowd out small-scale food producers and fresh produce traders, and reduce dietary diversity. 

They decided to take a closer look at how changes in food distribution, particularly through the development of supermarkets in Asia, are influencing small-scale producers and traders who depend on fresh produce markets for their means. livelihoods and how these changes affect people's diets and health.

E-Commerce in Asia is booming

Asian markets are showing their potential in terms of e-commerce and s-commerce. And PwC estimates that mobile payments will represent between 20 and 30% of transactions in China by 2016 (8% in 2013). This study, which covers 15 Asian countries, including China and India, analyzes the sectors of food, clothing, luxury goods, electronics and e-commerce.


 The Asia-Pacific region remains the number one destination for many global brands in the retail & consumer goods sectors. Growth in the region will be driven by China and India, despite the slowdown in its economy for the first and the lack of reforms for the second. For Sabine Durand-Hayes, partner at PwC, head of the Retail & Consumer Goods sector: “Asia remains the region where you have to be present, and it will continue to be so in the near future. I don't think any actor can afford to turn away from this region. Its economy is no longer as booming as it once was and China's growth is slowing, but compared to Western economies, its GDP performance remains largely enviable." His advice to major brands in the sector: “Major distributors must work with local partners and develop products that adapt to the tastes of the local population. »


China is today the world's largest market for e-commerce. According to the iResearch Consulting Group, the annual growth of online sales slowed in 2013, but is still expected to reach 42%, or $306 billion. If the opportunities on the e-commerce market in China are numerous, it is difficult for foreign players to seize them in the face of domestic players who are already well established. In 2014, Chinese pure player Alibaba captured industry attention with its record $230 billion IPO.

Moreover, 2022 should be the year when India will reveal its potential in the e-commerce market.

China will be the world's largest market in 2022. Despite slowing growth, China remains a market that players in the global retail & consumer goods sectors cannot resist. Average annual growth in sales volumes was 15.6% in 2022; while it has since fallen, it is expected to remain at 8.7% over the next two years. In 2018, China should therefore be the world's leading market for distribution and consumer goods.


To adapt to a changing economy, players in the sector are rethinking their strategies: more and more traditional players are adopting e-commerce channels. In 2013, China overtook the United States as the world's largest e-commerce market. Mobile payments accounted for 8% of total transactions made in 2013, down from just 1.5% two years earlier. PwC estimates that this figure could reach 20 to 30% by 2016. In India, the lack of reforms slows down the retail & consumer goods marketWith more than 1.2 million inhabitants, India represents the Eldorado of players in the retail & consumer goods sectors. However, the lack of reforms and the lack of will on the part of Indian leaders to open their market to foreign investment is hampering the development of this market. Global retailers are missing out on a market estimated at over $1 trillion in 2022. India's retail sector grew 4% in 2014, and growth is expected to rise to 5.6% this year and 6.6% in 2022. The six promising countries for the retail & consumer goods sectors-


Retail sector sales (in value) in Indonesia are expected to double in 2022 , from $330 billion in 2014 to $639 billion .

- Malaysia: Retail sales in Malaysia are expected to boom as consumers regain confidence in their market and the economy grows rapidly. PwC estimates that the sector's sales volumes should grow by 5% per year between 2014 and 2018.

- Singapore: After a period of rather modest results for the distribution sector, the volume of sales in the very touristic island of Singapore should accelerate over the period 2014-2022, going from 1.2% growth in 2020 to 2.9% in 2021.

- South Korea: South Korea is ranked 5th in Asia for the total value of sales made by the distribution sector, just behind China, Japan, India and Indonesia. Established at 284 billion dollars in 2013, sales should reach 378 billion dollars in 2018.

- Thailand: Despite its economic difficulties, Thailand should witness the growth of its distribution market between 2014 and 2018, due to a strong increase in demand. PwC estimates that sales volumes will return to growth of 0.7% in 2015 and will rise to 4.3% by 2018.

-Vietnam: If the retail & consumer goods sectors are still weak in Vietnam compared to its neighbors – sales should represent 123 billion dollars in 2018, the market should grow very quickly according to PwC. With sales volume growth estimated at 7.5% over the next 5 years, the country is attracting foreign investment.


Luxury: the market is slowing down. After a strong period of growth led by China, the luxury goods market in Asia is showing signs of slowing down. The Chinese anti-corruption campaign is leading companies in the luxury sector to review their expansion plans. The weakness of the yen and the increase in sales taxes in Japan have also dealt a severe blow to this industry.

Food distribution: food security is a growing problem. The Asian food industry is subject to food safety regulations. Thus, Asian producers are looking abroad for expertise and trusted brands to partner with. China, in particular, is increasingly acquiring players in the food and beverage sector. Transactions in these sectors accounted for 17% of total transactions made by Chinese players during the first half of 2014.

Clothing: a rapidly growing market. The clothing and textile industry is expected to grow very rapidly in Asia over the next 5 years, with an average annual increase in expenditure estimated at 9.5%. Due to the demographics and growing middle class in the region, demand for these fashion products is set to intensify. By 2022, Asian consumer spending on apparel is expected to growth

samedi 26 février 2022

cross-border in China logistics problems

The Chinese market is open to global brands looking to sell cross-border. The market is maturing, and it is now more organized and structured than in past years, adhering to a strict set of standards.

According to China Business Intelligence Network News, all these variables have a good impact on the market size, which has experienced remarkable growth of about 20% yearly in both 2020 and 2021. In 2021, the total value of cross-border eCommerce is expected to reach 14.6 trillion yuan (2.3 trillion USD).

But if the Chinese E-Commerce market is getting more and more popular through the development of events such as Double 11 and amazing sales performances, as generated by Alibaba group, the logistic supply chain still remains an important challenge for foreign companies.


dimanche 30 janvier 2022

Apple's market share in China


According to Counterpoint Research, Apple's fourth quarter market share in China was its highest ever. It was also the top-selling seller there for the first six years.

This milestone was achieved with the iPhone 13's release. Despite a stagnant market for handsets, Huawei Technologies' market share fell.

Apple's smartphone market share grew to 23 percent, which is a record for the company. Counterpoint reports that Apple's quarter-end unit sales volume increased by 32 percent year-on-year, while total smartphone sales fell by 9 percentage points in China. source

Mengmeng Zhang, Counterpoint analyst, cited China's lower starting prices and the effect of US sanctions on Huawei, Apple’s main competitor, as contributing factors.

Apple was China's most-sold smartphone brand when it last ranked in the top ten in China in late 2015. This was just after Apple launched its iPhone 6 which attracted Chinese consumers due to its large screens.

Apple was China's third-best-selling smartphone brand in 2021 with 16.3% of the market.

Vivo and Oppo were two Android handset brands that fall under the private BBK Electronics umbrella. They were ranked first and second, respectively, with 22% and 21%, respectively.

Apple's unit sales increased by 47 percent year-on-year, while Huawei's fell 68%. Counterpoint reports that overall smartphone sales in China dropped 2 percent.

Apple know the secret to be successful in China 

As consumers put off purchasing new smartphones, Chinese smartphone manufacturers are faced with a dilemma: extending upgrade cycles.

Global shortages of components and chips have meanwhile roiled the electronics industry, affecting margins and pricing for all manufacturers.

Apple and Huawei are the big leader in China explained a member of the Paris Chinese Club