How to reach buyers in China

It’s possible to reach buyers in China without doing a joint venture or opening a subsidiary. Nevertheless you must decide how you want to sell your products or services to China. 

Selling through a distributor

A small business should find a Chinese distributor for many reasons:

A distributor have an already-established network of retailers, can order larger volumes, the required importing licenses and storage facilities. This allows you to focus on making great services or products instead of building a network of retailers from cero.

Advantages of selling through a distributor

• Larger volumes, enabling a lower freight cost per unit
• Established network of retailers in China and the ability for further expansion
• Import licenses that are required to import anything into China

Disadvantages of selling through a distributor

• Efficient and easy communication cannot be assured
• Distributors are not charities and need to take a cut on the profit as well
• You lack control over where your products are sold

Where you can find Chinese distributors

• By contacting the embassy in Beijing or any of the consulates in Shanghai, Chongqing, Guangzhou or Hong Kong
• Alibaba.com and hktdc.com
• Trade Fairs
• Google and Baidu (China’s number one search engine)

Selling directly to local retailers

It’s possible to export directly to stores in China. However, many, if not most stores have no previous experience of importing products and proper licensing is required. Another disadvantage is the lower volumes individual retailers can order. The freight cost per unit is much higher when shipping individual LCL (Less than Container Load) cargo to various buyers, compared to a larger shipment to a single distributor.

Advantages of selling directly to retailers

• Gives you complete control over pricing and which stores are selling your products

Disadvantages of selling directly to retailers

• Building a network of retailers is time consuming, especially considering the language and cultural barriers. Expect to spend a lot of time in China.
• Most retailers are not importers and are thus lacking the required licenses for importing products to China
• Individual retailers requires individual shipments. LCL shipping is much more expensive per shipped unit compared to FCL [Full Container Load] shipping

Where you can find Chinese retailers

•  Trade fairs
• Google and Baidu

Freelancer Agents

The main problem is that freelance agents don’t have the required licenses to import products to China.

Advantages of hiring a freelance agent

An agent “on site” in China can still act as your representative and manage communication between you and your Chinese buyers. An agent can help you with sourcing and auditing of prospective buyers and partners.

Disadvantages of hiring a freelance agent

A freelance agent is a good complement to your overall supply chain, but should not be considered as a substitute for a proper distributor.