China has emerged on top of the list of countries for whoever wants to expand and invest internationally.
In the past China’s economic growth was first based on the export of highly competitively priced goods. However, in recent years China has turned into a major importer of a wide variety of western products.
China offers now any international company access to one of the world’s most important markets for an immense variety of services and goods.
Emerging markets such as China are understandably very attractive to many companies; but while the opportunities are very tempting, it is crucial to understand that having just a great product is far from enough to succeed in a large market like China.
- Know your market
It is vital to understand the economic model for a successful wholesale distributor structure which will allow you to work with your chosen distributor. Due to the historical and cultural factors, it is important to be very clear with the guidelines you give to your distributor.
- Create a reporting system
Compared to Australia, China hasn’t got a structured reporting systems between wholesale distributors, local distributors, and producers. This means that there is no cross information which will be passed on like how much was sold and at what price. It is advisable to create your own reporting system for each wholesale distributor, local distributor and producers.
- Build long lasting relationships
Ensure that your sales force develops a very deep relationship with your distributors. Given the speed of China’s economic growth, it is essential to have an active sale force to understand the difficulties of the day-to-day work of the local distributors.
- Size up the risks
One province of China has the size of Europe. There are approximately 150 cities in China with over one million people. Due to that you should anticipate and evaluate economically possible risks. Consequently, if you are planning to stop working with a particular distributor in a particular region, you must be very clear on how you will make up for this loss. Be prepared that for some time sales will suffer before you can see growth again.
- China vs Australia
Compared to Australia, China’s regions are very different from each other. Each region has a different socio demographic as well as consumption. Compared to Australia one pilot roadmap will not work in China combine that with the pace of implantation which again depends on the regions market maturity.
- Before you expand into China
Establish a myriad of variables (geographic & socioeconomic) and be prepared to work on different adaptations for each region and at different times.
Are you ready to expand into China? Why not save yourself time & money and engage an experienced business consulting firm like Synergy Consulting Australia to take the stress out of the entire business growth process. We provide a large range of business consulting services which includes Legal, Accounting, Marketing, Project Management & Migration services. This also includes a full market research and feasibility report before investing. www.synergyaustralia.com.au
Synergy Consulting Australia is led by Ilona Solinska. Ilona has over 15 years’ national and international business consulting experience. She has coached hundreds of businesses in the area of Marketing, Finance, Legal, Compliance, Operation, Change & Project Management and is a highly sought after presenter on a wide variety of business topics.