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).

https://find-distributors.asia/7-mistakes-brands-do-when-dealing-with-chinese-distributors/

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 Find-distributors.asia

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 DRIVING GLOBAL GROWTH FROM E-COMMERCE

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-

Indonesia

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.

SECTOR FOCUS

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

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.

READ MORE

China -Taiwan's “Pineapple War” distribution

 In Asia, China and Taiwan have for several weeks been in a silent political-commercial standoff, one of the latest consequences of which is what one might call "the pineapple war".

In fact, last February, Beijing decided to ban imports of Taiwanese pineapples into its territory, from March 1. A sudden ban deemed unfair, and not meeting the standards of international trade rules, by Wang Mei-Hua, Taiwanese Minister of Economic Affairs.

For the Island, this ban is above all a political act, while China claims to have taken this decision for biosecurity reasons (Chinese customs officials have found parasites in pineapples, according to Chinese media Xinhua).

“This is not the first time that China has used agricultural exports to other countries as political threats,” the island's ruling Democratic Progressive Party (DPP) said in a statement reported by Reuters. In this regard, we will recall the ban on imports of coal and Australian lobsters last year. For once, if the bulk of Taiwanese pineapples are consumed locally, China alone absorbs more than 90% of exports.

The "Pineapples of Liberty"

In the process, the leaders of Taiwan urged their citizens to consume more pineapples, to minimize the impact on farmers cut off from their large Chinese clientele.

Thus, while waiting to "reflect and discuss with China on this issue", "we will try to diversify and sell our excellent products in markets other than China", added the Minister.

For Taiwan, the strategy seems to have paid off, because Prime Minister Su Tseng-Chang recently said domestic demand for pineapples has exceeded total exports expected this year to China.

And as might be expected, the Americans were quick to jump at the opportunity to support Taiwan against China. This is also the case for Canada, somewhat at odds with China.

source: 

https://www.bbc.com/news/business-56353963

Read also target China

Read also 

• http://distribution-in-china.blogspot.com/2020/09/china-probes-australian-wine-imports.html
• http://distribution-in-china.blogspot.com/2020/09/guide-to-distribute-your-product-in.html

China probes Australian wine imports

 Canberra 'sided with the United States' leads it into trap, says observer

China launched an anti-subsidy investigation into Australian wines on Monday, less than two weeks after launching an anti-dumping investigation against the same product, signaling a continued cooling in economic relations in the face of what the country describes as growing hostility from the administration Morrison to China.

China’s anti-dumping investigation into Australian wine is politically motivated, industry figures say

China's Ministry of Commerce on Monday announced it was launching an anti-subsidy investigation into Australian wines sold in containers of two liters or less. The investigation is expected to conclude on August 31, 2021 under normal circumstances, but it could be extended until February 28, 2022, according to the ministry statement.

China had already launched an anti-dumping investigation against Australian wine on August 18.

"China has launched investigations after it discovered problems with Australian wines exported to China," Li Guoxiang, an agricultural researcher at the Chinese Academy of Social Sciences, said Monday.

“Based on my study of the Australian agricultural sector in 2013-14, it is hardly conceivable that the cost of Australian wine would be lower than that of Chinese domestic wine, so Canberra is probably giving subsidies to its farmers. This is one of the reasons why China has launched its anti-subsidy investigation, ”Li said, indicating that simultaneously conducting anti-dumping and anti-subsidy investigations is a standard trade investigation process under World Organization rules. trade (WTO).

As an economy that relies heavily on trade with China, Australia has seen its wine exports to China increase since 2019, when a free trade agreement came into effect and allowed Australian wines to d 'be imported into China without customs duties.

In 2019, Australia's wine exports to China increased 12% from the previous year to A $ 1.28 billion (US $ 943 million), becoming the largest supplier of wine from China with 37% of the country's annual wine imports

Australia's wine exports could be severely affected if surveys reveal problems, analysts say.

"The Morrison administration itself should be blamed if Australian exports to China drop, because it should have known that its unreasonable actions would have adverse effects on China-Australia economic relations," Zhao Gancheng, director of the Center for Asia-Pacific Studies at the Shanghai Institute for International Studies.

"China has done nothing wrong with Australia, while Australia - in its decision to side with the United States - continues to accuse and attack China unreasonably," he said. Zhao said, noting that this seriously undermined bilateral political confidence.

Australia, which has followed the policies of the US administration, was the first Western country to not allow Huawei's 5G equipment, while calling for an independent investigation into the epidemic situation in China.

"Many hawks in Australia - who are aware of the complementary nature of trade between China and Australia - are playing a game of political provocation against China while trying to reap huge economic benefits from relations with China." Ruan Zongze, executive vice president of the Chinese Institute of International Studies, said Monday.

According to him, Australia's pro-US foreign policy aimed at strengthening diplomatic relations with Washington has put Australia in a "trap", which has led many people to believe that Australia cannot take a stand. decisions by itself. "This is not in line with Australia's interests or international principles," he said.

Products that China imports from Australia can be purchased from other countries, Zhao said, noting that if the Australian government does not care about its economic interests, China can certainly import from other sources. .

Read also 

https://www.forbes.com/sites/timtreadgold/2020/09/24/china-says-it-wants-less-aussie-wine-but-drinkers-say-more-please/#de6bb5e6684a

https://www.bluebiz.com/en/BizClubs/Club-China-News/wine-in-china-from-niche-into-mainstream

https://www.scmp.com/economy/china-economy/article/3099247/chinas-anti-dumping-investigation-australian-wine-politically

Amid deteriorating bilateral relations, China's merchandise imports from Australia fell 4.4 percent year-on-year in the first seven months of 2020 to reach $ 66.92 billion, according to data from the Chinese General Administration of Customs.

Guide to distribute your product in China

Rapid urbanization combined with a growing and changing Chinese economy paves the way for great opportunities and threats for Western businesses. While some jobs are outsourced to the United States and Europe, they can indeed also take advantage of China's new purchasing power by offering to sell to China, a population of around 1.3 billion people.

Basically, the types of products you decide to sell in China should be attractive to Chinese customers to get their attention and engage them. Agricultural products, food and drinks, baby and maternity products, health and wellness products. In addition, there is an increasing emphasis on sporting, leisure and lifestyle items.

What can I sell in China?

With a middle class of over 300 million people, which is growing every year, there are certainly plenty of opportunities to sell products to Chinese consumers. But some products are more in demand than others.

Makeup & fashion

Beauty and Makeup is a major product in the most popular categories for Chinese buyers, especially those who use Tmall. Beauty accessories are in the beauty niche, some accessories like makeup brushes are popular in China. An international brand can find great success selling its products on Tmall in China.

Selling to China Skin care products like moisturizers and sunscreens are also popular among Chinese consumers. Especially if you offer products made with natural ingredients, you might have a good chance of attracting health-conscious Chinese consumers.

They also regularly buy everyday products like cleaning products online. Thus, international companies could potentially sell natural products, especially those containing natural ingredients to appeal to families and health-conscious consumers.

Fresh products are popular in China

You can also attract Chinese customers by selling fresh produce like fruits and vegetables. Natural juice is also a popular product among health-conscious consumers in China. And some types of fruit juice, like cranberry juice, have just been introduced to the Chinese market.

There is also an increasing demand for seafood in China, both due to the growing health concerns regarding local Chinese seafood and the westerners have access to certain types of seafood that cannot be found in China. China.

Food supplements in China

Chinese consumers are also increasingly health conscious, so health products such as vitamins and supplements are gaining more and more attention on e-commerce platforms such as Tmall, JD.com. Selling in China via Crossborder is a good option.

Dietary supplement & vitamins 

Category of food imported on Tmall Global

Healthy packaged foods in China

You can also woo Chinese consumers with healthy foods that are a little easier to ship. Think about packaged foods that contain healthy ingredients like dried fruits and whole grains. Chinese consumers, especially young people, are more interested in food trends. Sometimes Chinese consumers cannot get these trendy food products from local Chinese sellers.

Sell wine in China

Wineries and small wine brands can attract Chinese consumers as imported brands. Especially for brands that operate in desirable regions, selling in China can generate a lot of growth opportunities. To sell in China, you need to localize your content.

Business in China & strategy

Align content with business goals and brand positioning. A global provider of corporate information security services has contacted us to receive information to support their content marketing and public relations efforts. Global business information security spending had grown rapidly since the start of the decade, and the complex nature of modern computer security threats meant that companies were spending more and more of their overall IT budgets on improvement. of security.

In response to these trends and the opportunity presented, our client wanted to develop a growing range of information security services and link these services to the security challenges that may arise for clients within the client's core offerings. To support communications around these expanding capabilities and build a “thought leadership” positioning on the topic, our client commissioned research to support marketing and public relations efforts.

Our social listening tools help you harness the voices of your customers and prospects across online and social channels, giving you critical feedback and insight into what the market thinks about your customer experience and your Mark. Listening closely and reacting quickly to these social signals in real time can help companies gain and maintain a competitive advantage.

B2B

 B2B research, we are always looking to find readily available information and data to help provide insight and solutions, so you imagine social media platforms like Twitter would be a gold mine for b2b brands. They sure are, but only with the right tools at your disposal.

social listening in China the key to success

We use sophisticated tools, which analyze the information and the social media landscape for information relevant to the market and research needs of each client.

These tools help us identify and analyze the network of influencers talking about a topic or brand, whether on social media, online communities or specific industry sources.

Horizon Scanning can also be used to understand what the future may have in store for you in your market, by listening to information on growth drivers, challenges, threat of disruption or macro / micro trends.

We consolidate content quickly, sorting out the “noise” that can often prevent businesses from seeing the big picture. The tools we use are sensitive to the existence of unreliable or misleading content, filtering information so that we can provide solid and reliable information to our customers.

source of this article ecommercechinaagency.com

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 JD.com 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 JD.com 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.

Find this distributor Website

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 JD.com 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

1. https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/China/Industries/Food-and-beverage
2. http://distribution-in-china.blogspot.com/2018/10/guide-to-effectively-distribute-your.html
3. http://distribution-in-china.blogspot.com/2018/05/wechat-new-way-to-distribute-your.html

Importation of Gold in China!

Importation of Gold in China! 

Net imports Golden China from Hong Kong fell slightly in September but overall are considered strong , with an investment bank citing as an example of the ongoing transition to a higher demand in the country the East than in the West. Shipments to China from Hong Kong were 116.3 tonnes in September , exports to Hong Kong 6.9. That left net imports of 109.4 metric tons, down 0.7% from 110.2 the previous month, according to press reports . " Month after month data show that small changes are not really significant . What matters is the trend over a long period ... ," said Jeffrey Nichols , Managing Director of American Precious Metals Advisors and Advisor main economic to Rosland Capital. China " has become in recent years may be the major factor in the physical market and is likely to remain or become even more - . In the years to come"

 Beijing government

The Chinese government does not release the actual statistics for imports in mainland China. As a result , analysts monitor Census Hong Kong and statistics in order to measure the flow of gold in China. "It was ... the fifth consecutive show net imports of more than 100 tons " month, said Commerzbank . reports peg net imports to 826 tonnes so far this year , double the first nine months of 2012. Commerzbank said Chinese imports far exceeded the output of products traded in global stock market gold , it lists, in a little less than 703 metric tons in the first nine months of the year. "This is further evidence that the demand for gold is moving from West to East ," said Commerzbank  source


 Many analysts believe that the data support the idea that China will overtake India as the world 's largest consumer of gold in 2013. While Chinese demand has been strong for most of the year, imports from India have been reported softer in response to government efforts to limit the input of metal to reduce the large current account deficit . "With what is happening in India right now , China is by far the largest importer ," said Afshin Nabavi , head of trading with MKS (Switzerland) SA . " Remember, they ( the Chinese) are also production themselves inside that is consumed by them. " Traders will be watching closely the October data when it is released to see if a slowdown in Chinese imports is observed. The Chinese market was closed for a week stretch during the Golden Week holiday , Nabavi said. In addition, many analysts believe that the activity in China was duller at the end of October, with softer premiums earlier this year. " It will be interesting to see what the numbers we have in October ," said Nabavi . Nichols pointed out, however, that lower premiums are not necessarily an indicator of the decline in domestic demand in China .
source http://machine-technologie.blogspot.com/2013/11/lor-en-chine-en-2013.html

 The government has taken measures

 "The government has taken measures , in a sense, to provide more supply on the domestic market, increasing the number of banks and financial companies that are authorized to import gold," he said . "They somehow grease the wheels a little more to improve the possibility of large bonuses again. " He said Chinese supplies are probably rising, mine production and scrap metal . This means that consumption especially strong if the country imports metal at the same time . In addition, it is likely that more metal than reported circulating in the country via smuggling across the major border " porous ", especially when premiums are high, Nichols said. And , he said , the central bank countries is thought to be adding to its gold reserves , and this result can be held in deposits with other central banks and therefore not included in the import statistics . Nichols suggested that the government may try to encourage the demand for private investment while minimizing the impact of energy prices on the world market . " He wants to buy cheap gold rather than prices that would certainly be higher if people gave adequate recognition to strong demand from China ," said Nichols . He added : " Intuitively, I feel that Chinese demand is very strong, will remain strong over the long term and become a factor more important in setting the prices on world markets. "

source
http://www.kitco.com/