Are Distributors the Best Way to Enter the Chinese Market at Low Costs

Recently updated on April 15th, 2021 at 03:00 am

See what expats say about entering Chinese market
See what expats say about entering Chinese market

Orange Chen(Promotional product supply for reward | incentive | loyalty marketing program, Indoor marketing, Retail POP marketing, China): What kind of product you are running? Personally, it depends on the product and the market intelligence. Prices do matters in the Chinese market. Which regions do you target?

Bruce Bernstein(Director of Licensing, Marketing & Sales at Ninety Nine Inc, China): Hi Louis…. That is a tough question… It is kind of asking is the best way to enter the USA market by distributors or the EU through distributors. China is a huge market in both geographic size and by type of consumer.

My answer to you would be…. it depends…. what is your product… where is your geographic target… are you planning on selling to all China at once… or start in a certain area and expand over years… who in China is your target market… do you know about China business etiquette…inventory…. and there are many more questions to get answers to before you can determine if distributor/wholesalers are the cheapest way to go…

Bernhard Wessling(Owner at BWSI GmbH): What I would add to the previous comments, is:

even if you try to enter with the help of a distributor, you (or other managers of your company) need to be personally present and develop your own view/opinion about the market, and about your distributor’s performance; if not, you might easily get lost (your distributor may tell you all kind of stories, that was not only my experience, and – by the way – this is not unique to China!)

Qi Wu(Attended Auckland University of Technology): 1. It really depends on the product: for some of the products, you have to find local distributors, or they just come together and kick you away.

2. For some products, like high-class products, I believe “Stores in Main City+internet” will do better. Those stores were set up not for profits, but for brand image. You do not need too many of them.

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