China Strategy

China is the world's most important developing consumer market. If your company has a competitive product, this is the place to sell it.

Due to the immense economical growth from exports and trade, China's population has become wealthier. Especially the middle class income has grown, and with it the demand for higher quality- and luxury goods. China's interest in imported goods, especially from the United States and Europe has always been strong, but is unparalleled now.


Market Entry Services

Our consulting model is aimed at small-, medium- to large sized companies, who plan to enter the Chinese Market.

We, at Asia Trading, have been working with various European companies for five years. From our experience we know that the existing market entry approaches have limited advantages.

Starting a wholly foreign owned company in China requires an initial investment of about $150 000 and at least $65 000 annually for office rent and wages. However, the second approach, a distributor will always decrease margins and only provide limited growth beyond his existing customer base. Continuously all control over the product will be give away, and although product will be sold to a foreign market, no market expertise can be gathered during that time.

This is why we provide a third option, called ‘assisted market entry’. It enables you to keep full control over your China operations at reasonable cost.

Assisted market entry means providing you with a full range of services directly in China and allows you to focus on your core business at a fraction of the typical cost.

We are aware that every company has unique requirements. Should you be interested in special infrastructure or tailored services, we are glad to assist you. Our services cover every aspect a business requires when entering a new market. The services we can offer range from simple infrastructural tasks to complex marketing strategy and also managed sales operations. It is our priority to help our customers to avoid classic mistakes made when entering a new market. After many years of trading and operating in China, we have gathered experience in various fields an built strong relationships with partners and operations, that will help us successfully manage a market entry for a new company.

Market entry phases

If you should decide to work with us, we suggest the following stages to minimize risk and maximize opportunities:

In this initial step we will assess the potential of your product in the Chinese market. You will find out how the market is structured and who your potential customers are. We will use focus groups, interviews with industry experts and desk research to give an honest overview of your options.

Once this initial phase has revealed the opportunities and challenges, it's time to tailor your product to the Chinese market. This includes pricing strategies, market segmentation and product adaption.

Now it's time to get serious. In this phase we will make the necessary preparations for the sale of your goods. We organize the supply chain, decide on inventory levels and stock your show room. This is also a good time to notify your existing Chinese customers about your local presence and improved delivery times.

In this phase the main goal is to sell your product by using the new processes and infrastructure. We will organize local sales agents, prepare and online presence or exhibit on trade fairs. Building on your experience in other markets, you can decide on the most appropriate marketing mix for your product. After all your company is the primary marketing expert. You know best what customers appreciate about your product and how to sell it.

After about two years you know what works well and how high the demand for your product is. You have the option to seamlessly consolidate your operations in your own company without losing any market potential or clients.

FAQs

When can my company start doing business in China?
If your company has a good product and / or a strong brand it is time to move to China, and take advantage of the fast growing Chinese consumer goods market. The growing demand for foreign products is a key factor why companies decide to strategically look at a market entry in China. After a detailed market research risks and chances can be assessed and further steps can be taken.
When can I expect results?
It is hard to set up an exact timeframe, as each product and category as well as each way of entering a foreign market is different. It is also one of our aims, not to move as much product possible as fast as possible, but focusing on sustainability and long term growth and success. During the first months mainly research will be made because gathering experience in the distinct market is a key component in being successful in a new field of business. As soon as the market is examined and the infrastructural steps are taken, a company can expect first sales.