WKI has been received quite a few inquires asking us to help find distributors. Most of these clients are not presented in China yet, and finding a distributor to sell their product seems like the first step of entry China. However, the case was not that simple, in fact, finding a distributor can be an ultimate goal for those brands among clueless Chinese consumers.
The logic is clear, distributors want products that sell, better quickly. Sometimes they fight each other over favorable endorsement of certain well-known brands as just the name can naturally attract consumers’ attention. As when selling on CBEC platforms with lower taxes and lower prices, the goods can easily just sell themselves. With certain hosts and influencers giving promotion, the sales amount can be impressive. In other words, if you are one of those brands, distributors come to you.
When you are in the position of trying to find one, the situation already states that you are at the low wind.
This is the place you hire someone to gain negotiation power, for starters, by taking WKI Probe Plan. Or, you may do it yourself. It gives you more control over the whole process, but it can be more complicated. As for each steps you must take with the customs, storage, delivery, sales channels, you will have to choose from various suppliers as small quantity and first comers are usually overcharged.
It will sure be much easier if you have a Chinese literate person to handle all that, only this lead to another issue of head-hunting, which can be costly, and with moral hazard issues.
In fact, the importing trading, various players are in the games, there are registered as trading companies with large amount of capital invested, with mature storage and distribution channels, sales person in the field to handle end shelves and develop new channels. There are also larger players who build up B2C platforms to serve as an end channel as well as bring in new brands. There are also countless representatives of overseas brands visiting distributors trying to establish sales channels by themselves.
The issues here is, even if your representatives and products had been exhibited in high profile exhibition such as the China International Import Expo, in which you already had been presented among various buyers, you may still be struggling to find a distributor who would handle your product. Sometimes, even when there might be someone would like to purchase some sample to test in the market, the ordering amount would be too small to even cover the cost of shipping.
Let’s have a sum up and look at the Pros and Cons of each option
DIY by setting up legal entity
When determined to make a presentation, some choose to import by themselves. Setting up a trading company to handle the customs and storage, hiring local staff to make sales with goods in storage is a more straightforward strategy.
Pros:
Cons:
This is also a common approach adopted by many brands. Before the pandemic, many of those representatives are expats. They carry certain amount of samples with them to meet with potential buyers or making direct sales to individuals. This way is often taken by cosmetics which have long shelf life and relatively high unit value and only require small storage space.
Pros:
Cons:
Delegate the ultimate goal to you China Partner WKI
Either way, taking actions in consumer market is way better than waiting around. The market is growing and so is the number of competitors.
Contact us to find out more.
The logic is clear, distributors want products that sell, better quickly. Sometimes they fight each other over favorable endorsement of certain well-known brands as just the name can naturally attract consumers’ attention. As when selling on CBEC platforms with lower taxes and lower prices, the goods can easily just sell themselves. With certain hosts and influencers giving promotion, the sales amount can be impressive. In other words, if you are one of those brands, distributors come to you.
When you are in the position of trying to find one, the situation already states that you are at the low wind.
This is the place you hire someone to gain negotiation power, for starters, by taking WKI Probe Plan. Or, you may do it yourself. It gives you more control over the whole process, but it can be more complicated. As for each steps you must take with the customs, storage, delivery, sales channels, you will have to choose from various suppliers as small quantity and first comers are usually overcharged.
It will sure be much easier if you have a Chinese literate person to handle all that, only this lead to another issue of head-hunting, which can be costly, and with moral hazard issues.
In fact, the importing trading, various players are in the games, there are registered as trading companies with large amount of capital invested, with mature storage and distribution channels, sales person in the field to handle end shelves and develop new channels. There are also larger players who build up B2C platforms to serve as an end channel as well as bring in new brands. There are also countless representatives of overseas brands visiting distributors trying to establish sales channels by themselves.
The issues here is, even if your representatives and products had been exhibited in high profile exhibition such as the China International Import Expo, in which you already had been presented among various buyers, you may still be struggling to find a distributor who would handle your product. Sometimes, even when there might be someone would like to purchase some sample to test in the market, the ordering amount would be too small to even cover the cost of shipping.
Let’s have a sum up and look at the Pros and Cons of each option
DIY by setting up legal entity
When determined to make a presentation, some choose to import by themselves. Setting up a trading company to handle the customs and storage, hiring local staff to make sales with goods in storage is a more straightforward strategy.
Pros:
- Total control of the process
- Able to select suppliers of each step
- Learning by doing
- Easier access to distributors with a legal entity
Cons:
- Running a company in foreign land can be challenging
- High initiative cost of setting up company and hiring local staff
- Potential loss when unable to sell
- Dumping sales at extremely low price may harm the brand reputation
This is also a common approach adopted by many brands. Before the pandemic, many of those representatives are expats. They carry certain amount of samples with them to meet with potential buyers or making direct sales to individuals. This way is often taken by cosmetics which have long shelf life and relatively high unit value and only require small storage space.
Pros:
- Low budget, the worst case you loss the sample value
- Flexible, withdraw the market anytime by simple bear the cost of samples
Cons:
- Selling products to individuals without licenses is not in line with the market regulation
- Marketing approach cannot be controlled
- Moral hazard, you may trust the wrong people
- High cost if you hire expats and provide legalized visa to China
- High risk if you hire local personnel, without a legal entity there is no valid contract to protect your interest
- Your representative may be good at one thing but not others
Delegate the ultimate goal to you China Partner WKI
- We charge by time invested or by service package of clear description
- We prepare your Entry-China presentation and promote among potential buyers
- We demonstrate efforts and communicate feedbacks
- Our performance will be bind with contract within the law as a legal entity
- We are familiar with the tastes of buyers and distributors, minimum effort to make a break through
- You may take over the case any steps you want, we guarantee a clear and professional handover
Either way, taking actions in consumer market is way better than waiting around. The market is growing and so is the number of competitors.
Contact us to find out more.
