Exporting products to China and preparing for the Chinese market

More and more Western companies decide to start exporting their products to China. Many of them produce and export foods such as dairy products, sweets, or alcohol. When doing so, it is essential to know that the exported food needs to have the right certificates. Besides making sure the product fulfills all formal requirements, it is crucial to adjust it to Chinese consumers. In this article, you will find useful marketing methods that will help you sell products, especially foods, on the Chinese market.

Exporting products to China
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Tmall – how to sell on Tmall?

The dynamic development and openness to cross-border sales have made Chinese e-commerce dominate. Europeans are buying on a large scale from Chinese e-commerce platforms, and the Chinese are increasingly willing to open up to cross-border shopping. Selling on Tmall, the largest e-commerce platform in China, can be a hit for those interested in exporting to China. By 2018, more than 14,500 international brands from 63 countries were selling their products on Tmall Global. 80% of them were introduced to the Chinese market for the first time.

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Global brands in China

The Chinese market is still opening up for foreign products. The development of global brands in China is gaining momentum. Leading companies have plans to open a large number of branches in China in the upcoming years. Foreign brands are popular especially among the Chinese middle class and the young generation. The Chinese are craving for American lifestyle which results in the popularity of such brands as Starbucks, Apple and KFC. Purchasing American products is an indication of social status and high life.

The infographic below shows the most popular global brands in China. Among the foreign companies with the most significant number of branches in China, we can find examples of the American chains (KFC, McDonald’s, Starbucks), the European chains (H&M, Carrefour, Sephora), as well as Japanese ones (Uniqlo, Lawson).

global brands in China

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Big Order Scam

A Big Order Scam is a common type of business fraud. It has been used by scammers in China ever since China opened its borders to foreign trade. Surprisingly, despite many warnings and raised awareness of these scammers, a lot of naive entrepreneurs, blinded by a vision of big profit, still fall for this old trick. If you don’t want to be one of them, read how Big Order Scam works and you won’t get fooled.

Big Order Scam

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Chinese alcoholic beverages – market possibilities

China is the world’s biggest consumer of alcoholic beverages. For many years, the Chinese people preferred the products of their national industry, but recently the structure of demand changed rapidly. While the shelves of Chinese supermarkets are still filled with expensive ceramic jars with baijiu, nation’s most revered high-alcohol rice vodka, more and more Chinese are learning how to enjoy red wine or imported beer.

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Import from China – Cargo train connections Europe-China

Till recently, the Western buyers of Chinese merchandise had two different transportation options. They could have chosen fast, but deliberately expensive air transport, or stick to good old maritime transport. Worth mentioning, the providers of the latter also decided to raise prices in order to recover loses inflicted by the global recession. But the third option appeared: transcontinental cargo railway transport.

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Export to China – types of business presence in China

Registering a company in China is still a relatively complicated procedure, despite the fact that the People’s Republic of China authorities are struggling to make those procedures easier for foreign businessmen. In China, there are four basic types of business presence. We need to keep in mind that every province has its own distinctive features which should be analyzed before choosing the place for our business. Every potential investor should evaluate his time and financial capabilities before making such decisions. As the opening business in China may take a lot of time, we present some basic modes of operation accompanied with the short description. While registering the company in China, we should seek help of the professional companies and institutions which already have the experience in this field; they will help us to choose the most suitable type of business presence.

Representantive Offices, RO

The main advantage of this type of business presence is the low cost, this type is the most popular among the foreign entrepreneurs. It enables them to obtain residence permits. There are several disadvantages though: ROs do not have legal personality, they cannot issue invoices, the personnel must be employed through the governmental agencies. This type is chosen mostly by companies which are performing market surveys or are overseeing the Chinese contracting party (ie. factory) while importing from China.

Types of Business Companies

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