vendredi 28 décembre 2018

3main challenges for Food Distribution in China

It is particularly advisable for food companies to sell their food and beverage products in China through distributors and resellers. China's food safety regulations, import laws, and food and beverage distribution systems can be extremely complex, and someone like will probably be better able to navigate these countries in China.

2 very nice video about Food Distribution in China 

E-Commerce for food e Distribution in China

But it's more than just saying "yes" to a company like to sell your food or drinks in China. Even if you end up using an established Chinese food or beverage distributor for your products, you must at least do the following:

A Chinese Food Distributor 

With a portfolio of over 60 International leading brands from 10 countries, we supply international and local retail chains, Supermarket, Specialized imported Store Chains, and online e-Commerce platforms, top hotels, restaurants. We are an agent for importing goods to China.

Food Distribution 

Make sure your agreement with your distributor / reseller protects your reputation in China and elsewhere. Make sure your contract does not bind you to your distributor or reseller if sales are poor. Be sure to protect your intellectual property (especially your trademarks) from both your distributor / reseller and from China and elsewhere. For many US food and beverage companies, relationships with companies such as are perfectly logical, as long as they are well done. Many people wonder why food imports have increased significantly in China in recent years.

Many know that the middle class is growing rapidly. With a population of about 1.4 billion people, it is natural for a large part of the population to tend to appreciate foreign products over time, along with the increase in wealth.

Food Problems in China 

Food Safety

Add to that the food scandals that China has experienced in recent years, even deaths. With (almost) everyone walking around with 24/7 internet access, this information is spreading rapidly.

In simple terms: Chinese people have become more critical and suspicious, which has led more people to look for products to buy abroad.

The Chinese younger generation takes over imported Food 

In addition, young and middle-aged people have begun to appreciate foreign food. If you go for Friday dinner, your friends may ask you if you're ready to dine at the nearby Yakiniku Japanese restaurant, or if you have American mini-burgers.

The trend is changing in China, offering great opportunities for foreign exporters.

Read also


lundi 12 novembre 2018

Jd is the New Etail that win the double 11 with 23Billion Sales

Although Alibaba achieved more than $ 30.8 billion in sales for the Double 11 event of November 11, 2018, the real winner was According to their website, they spent about $ 23 billion.
JD and Alibaba have made the biggest retail event now a retail show in Asia. The volume of transactions on reached a record 159.8 billion RMB (about 23 billion US dollars) from November 1 to 11. While Alibaba focuses on the Single Day, JD organizes an event of days on and reaches almost the same level. source 

While the press reports Alibaba's success with its "New Retail", including technologies ranging from artificial intelligence to data center cooling, to automatic reading, blockchain and the impressive number of physical stores JD shows all its potential to evolve in the long term globally. In time, in the world of trade, the delivery of the final kilometer is one of the insights of consumer consent. Amazon understands this, offering free delivery to non-core members in this holiday season. notes This year, the global brands as Apple, Dell, Dyson, L'Oreal, SK-II, Pampers and many others have recorded impressive sales performance. JD has partnered with companies such as Walmart and Tencent, allowing it to focus now on global growth and even create a sales funnel in America. It's good that you've never heard of JD, but it's the second largest e-commerce retailer in China, where it matters most. source seoagent
JD saw single-day sales increase 27 percent year-over-year. The last two years, which impressed me the most, is the growth of JD, which has doubled its number 11. Alibaba was sort of a given, with sales about six times higher than the event Amazon's "Prime Day" held every July. Alibaba has a long history and Asia is a denser part of the world in terms of consumption. But JD, nobody really saw that coming. If Amazon is to be associated with Walmart and Target, but Google, the largest market in the e-commerce market even more in China. This is pushing Chinese technology companies to innovate.
So where are the JD numbers? Well, the 2018 figures are up 26% from last year, with 127.1 billion RMB registered at GMV, worth more than $ 19.14 billion. To make it clear, he increased sales by almost $ 4 billion. Even with a weaker Chinese yuan, a trade war, Chinese consumers are still pretty confident. I am quite doubtful that Western consumers were using the optimistic holiday season. At least Amazon and Apple project different stories.
Read more 

samedi 13 octobre 2018

Guide To Effectively Distribute Your Products In China

in recent years, China has liberalized its distribution system to provide full foreign trade and distribution rights to foreign companies in most industrial sectors. The new laws removed previous restrictions on size requirements for commercial and distribution companies, opening the door for competition for small businesses.

Tips To Distribute Your Products In China

 The outright ban on foreign-invested enterprises importing, exporting and distributing goods in China has improved, but the licensing and approval process remains difficult, time consuming and is extremely opaque. A standard commercial license is usually issued by the municipal administrations of industry and commerce.

The distribution rights of these industries are often approved by a higher authority, such as a municipal or provincial trade commission. This effectively adds another layer of bureaucratic hurdles to US companies.

Special trade zones, such as the China Pilot Shanghai Free Zone, launched in 2013, and the Tianjin, Fujian and Guangdong Free Trade Zones, are currently experimenting with regulatory reform and sectoral pilot projects that could increase market opportunities.

distribution and sales channels for international companies. In principle, all free zones are supposed to have the same rules, each with its own specialty (Guangdong, support trade with Hong Kong and Macao, Fujian, promote trade with Taiwan, Tianjin, strengthen economic integration in the north between Tianjin / Beijing / Hebei and Shanghai - focus on innovation).

International companies expressed disappointment with the speed and scope of regulatory reforms, but congratulated the Free Zone's administrators for their increased responsiveness and communication in certain industrial sectors, particularly with regard to customs clearance. Sales channels available to foreign companies selling in China include trading companies, distributors and local agents. Commercial companies holding import / export rights facilitate customs formalities; distributors establish sales channels and manage inventories and inventories; and local agents sell products to consumers

Sales and distribution networks in China evolve

With the increasing privatization of distribution channels, sales in China have increased exponentially. Retail sales alone increased from 4.3 billion yen ($ 520 billion) in 2001 to 12.5 billion yen ($ 1.8 trillion) in 2009, with annual growth of about 12, 5%. Last year, retail sales grew 16.9% over 2008, despite the global economic slowdown, according to the PRC's National Bureau of Statistics. A PRC Ministry of Commerce official (MOFCOM) said in November 2009 that China's retail sector is expected to grow by 16 percent in 2010. A report published in April 2010 by the Boston Consulting Group indicated that "Increasing the number of middle-class and wealthy households would double consumer purchasing power in nearly a quarter of China's cities and counties over the next decade." to reach 70% of this segment, it must be present in nearly 240 sites, and in more than 400 by 2020.

Many companies are marketing their brands beyond the big cities to meet growing demand. More than 160 cities in China have at least one million inhabitants. Some companies, such as Adidas-Salomon AG and Nike, Inc., have already implemented strategies to enter small towns. These developments and forecasts imply that Chinese companies will have to significantly expand and strengthen their distribution and logistics capabilities, either on their own or through third party suppliers. In addition, the Chinese government's efforts to boost consumption will reinforce these trends.

Logistics is changing

In recent years, the Chinese government has invested heavily in the country's logistics infrastructure. China has spent nearly 40 percent of its 2008 economic stimulus package (1.5 trillion yen [$ 219 billion]) on developing public infrastructure. In 2009, China built or upgraded 156,000 rural stores and 1,100 distribution centers across the country, according to China. China now has 420,000 rural stores that cover 75% of communes and 50% of administrative villages.

Over the past decade, China has invested in improving infrastructure in the cities of the interior, with a focus on building large cities within major logistics and distribution centers. For example, Wuhan in Hubei becomes the multimodal logistics center of central China. The city has one of China's largest inland ports, carrying up to 40 million tons of cargo a year, with shipping routes serving 14 countries. National highways and railway lines connect Wuhan to other major Chinese cities. In May 2010, the Wuhan government announced an investment of 14.6 billion yen ($ 2.1 billion) in Wuhan Tianhe International Airport, which will increase the airport's cargo capacity to 400,000 tons per year. Many large multinational companies, such as Coca-Cola Co. and Kimberly-Clark Corp., have made the city a key strategic distribution center. Other inland cities developing similar centers include Anhui, Chengdu, Sichuan; Heilongjiang, Chongqing; Xian, Shaanxi; YUnnan and Zhengzhou, Henan.

Tips for connect with Distributors 

Alibaba can change the distribution in China. 

The development of effective sales and distribution channels is essential for companies targeting the Chinese market. When developing sales and distribution channels, companies must take into account Guanxi Networks and personal relationships are an important part of a successful distribution strategy in China (see Marketing and Sales to Chinese Enterprises). Chinese "networks" are often small and exclusive, especially at the local level, where they can only be composed of a handful of decision-makers.
Developing personal relationships with these people is particularly important for the development of distribution channels. Distribution Partners Businesses need to analyze potential distribution partners, paying particular attention to significant material movements in China, as poor inventory positioning and stockouts can damage the brand's reputation.
Effectiveness In many cases, responsibility for distribution operations initially lies with the distributor without identifying clear procedures or objectives. Companies that use material flow mapping, particularly in rural China, with relatively sophisticated logistics, inventory-in-transit and distribution capabilities, are likely to be more efficient and able to deliver the materials themselves. goods on time and with a minimum of loss or damage. Mapping helps identify each part of the supply chain and which actor is responsible for what.
By graphically mapping material flows, companies can more accurately assess metrics that directly affect service levels and costs.
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samedi 26 mai 2018

WeChat , a new way to distribute your Product in China

WeChat , a new way to distribute your Product in China

You want to sell in China, WeChat is the New Taobao, and help Brand to sell in China...

China , a Changing Tech Country 

In China, the country's technology giants cut the industry down according to their respective strengths: Tencent claimed gambling and social networking, while Alibaba made e-commerce its a smart way to do Business. explain nic working in Tencent China

But as Tencent's Superapp WeChat is considering the growth of payments and offline services, the company is venturing into the retail business - traditionally Alibaba turf.

WeChat E-Commerce ..

In particular, WeChat mini-programs offer stores new ways to sell products, such as bundles that are facilitated by newsgroups. Integrated within WeChat, the mini-programs are lightweight applications that do not need to be installed, and can range from attraction and food delivery to livestreaming and shopping. And thanks to the massive social network of the app, brands and shops on WeChat can potentially tap into its 980 million monthly active users.
Since their launch last year, 580,000 mini-programs have been launched on WeChat. They have a total of 170 million active users a day, according to Tencent.

“Following WeChat’s big push for mini programs, you can see that more and more stores, brands, and platforms are setting up shop on WeChat, because they benefit from WeChat’s large user base and social sharing functions,” Mo Jia, an analyst at market research firm Canalys, tells Tech in Asia.

Social Commerce in China

Although Tencent's first attempt at e-commerce - an online bazaar called Paipai - was closed in 2015, the Shenzhen-based technology giant remained an active investor, choosing to support e-commerce companies instead of engaging directly. Today, many of these investments have become important e-commerce centers within the WeChat ecosystem.
For example, Pinduoduo, backed by Tencent, has integrated its entire e-commerce platform into WeChat. Start-up benefits from each user's social network by offering discounts for group purchases. A box of diapers can cost US $ 6 if you buy it alone - the price drops to around US $ 4 if you tie up with other friends.

WeChat Advertising & Mini PRogram 

WeChat advertising is pretty expensive and not sure about ROI, you can find a Guide here

You will notice that the mini-programs that suit WeChat [...] will be able to quickly expand their customer base, "said Chen Qi, CEO of online fashion company Meili United Group, at WeChat's annual conference. Monday. For example, group buying and livestreaming - where influential bloggers or celebrities talk about products they like - can bring new traffic, he explained.
Tencent is also an investor in Meili United Group, a company created from the 2016 merger of start-up ecommerce companies Meilishuo and Mogujie. According to Meili, the company has attracted 20 million new customers since the launch of its mini-program last summer

New WeChat plan 2018