Best way to find a distributors and Export to China in 2019

Importation to china Landscape

China's importation are growing more than ever 

China is home to one-fifth of the world's population and its GDP is the second largest in the world. Its economy, society and legislative systems are very different from those in the United Kingdom and are evolving at an impressive rate.

Consider these examples: British exports to China have more than doubled since 2010 China's online purchases surpassed the United States in 2013 and is expected to surpass those of the US and the EU by 2018 No patent law before 1984, but now more patents, trademarks and designs than any other country

China will soon become the largest importer of foreign products. In fact, foreign food producers are trying to gain a share of the Chinese market. You have often heard of big companies making decent profits selling food here, but that does not make you a small and medium business owner.

Small businesses have great opportunities to export food products to China, especially as they become more and more online. Many economists remain concerned about China's medium-term growth prospects because of slow economic reforms, its inability to control the level of its debt, and the uncertain external environment. Maintaining politically acceptable economic growth without further aggravating debt accumulation will be a major challenge for Chinese leaders.

source

source

source

US Export to China?

US exports to China in 2018 totaled $ 120.34 billion, up from $ 129.89 billion in 2017. This downward trend continued until this report was written - US Exports from China fell by 20%. April 2019. US exports to China reached $ 58.9 billion in 2018. In 2016, China remained the largest economy in the world, measured by purchasing power parity (PPP) that corrects price differences. The country became the world's largest exporter in 2010 and the largest trading country in 2013. (CIA World Factbook) So, what does China's trade relations with the United States look like today?

 

Australian export is doing well in China

The entry into force of the China-Australia Free Trade Agreement (ChAFTA) in December 2015 has given new impetus to an already strong trade and investment relationship, opening the door for Australian companies to penetrate our largest export market more deeply. . Visit the website of the Ministry of Foreign Affairs and Trade for information on how to reach the agreement, including details of preferential tariff rates for Australian exporters via a portal.
Check out this bloomberg post about chinese growing appetite for marble beef!

Find a distributor in China

Where to find a chinese distributors? 

• Exhibit & fair 

• Online

• Guanxi = contact in english

• Tmall B2D

•  Tmall TOF

What is the context like?

The first question for China is where to start: in Hong Kong, the legal system is more westernized? In Beijing, Shenzhen and Shanghai, the competition is more intense? Or can you find more barriers in second-class cities but reduce foreign competition? Cooperation with local wholesalers, brokers or distribution companies is a prerequisite for exports to China.

The creation of your own subsidiary is often embarrassed by many rules. Because of the size of the country, your agent or distributor in China may be more important than your own company, and you need to take a different approach than you are used to. Keep in mind that chambers of commerce are not professional service providers and lack industry-specific expertise. Therefore, please contact the industry in order to obtain more information and reference materials.

What is your competitor doing?

Another way to find distributors is to search for Chinese distributors with which your competitors cooperate. However, this does not mean that they agree or are willing to cooperate with you. Finding your products and searching for retailers who sell them may be a better bet. For example, if you sell high-end network cables in the computer industry, it might be interesting to know which dealers use high-end server manufacturers.

Don't be Shy

In fact, when you establish your first contact with your potential distributor, the negotiation process does begin. You should constantly determine your value throughout the process. First, prepare a document on business conditions and stipulate general conditions. Agreements must include alliances to achieve the goals of both parties.

Do not accept contracts that do not meet your company's objectives Ensure that you perform your duties in accordance with local laws. Please provide legal advice to ensure that contracts with business partners are effective and fair. Make sure that all your actions are legal in your country. Building your electronic reputation is the cornerstone of any sales activity.

Work on your reputation and awareness

First, you need a high-quality Chinese website, optimized for Baidu (China Google), and displayed by reference technology (search engine optimization). How to Connect with Chinese Distributors There are many ways to reach potential retailers in China. The most common (and most useful) activities include participation in trade fairs and exhibitions held in China, suggestions from other foreign companies and contacts with consulting firms established in China.

Keep in mind, if no one has ever heard of you or your products, there are no reasons to take the risk to lose money to distributes your products. Distributor distributes they do not market. Chinese consumers do not buy products they don't know. 

Be aware of the rules and differences of the market

Before exporting your products to China, you must have a good market entry strategy and a thorough understanding of the customs, regulations and controls of Chinese imports. By researching and interacting with other foreign companies and consulting firms with business in China, you can find distributors suitable for your company and begin to develop in this international market.

Another difference between distribution contracts signed with China and the United States is that distribution contracts signed in China should allow distributors to stamp their companies, because unsealed distribution contracts are not VAL.

Department of Law of China Because China's anti-monopoly law prohibits retail price maintenance, which forces distributors to resell products to third parties at the lowest price, distribution agreements with China should not require distributors to sell their products. At a certain price Once you check the legitimacy of your dealer, you can start signing the contract. If you don't take the necessary precautions, you risk finding a dealer who is not suitable for your company, or worse, an untrustworthy partner.



Develop your Distributions Network

Channels are multiples:

1. you have the choice to work with a big whole seller, that will use its own network to distributes your products
2.  You work with smaller distributors and have a lot of them. The pro is that you can control the distribution a lot more than the options number 1
3. Ecommerce with Tmall Crossboder for instance. Create you own store and control everything.
4. Distribution like ecommerce platforms: Sell your products to a platform such as VIP, Kaola, Jumei and lets the sell your products.