BEAUTYDIRECTORY’s founder and managing director, Janet Hayward, recently attended the Win in China conference – a day of hearing about how brands can better its exports and success in the Chinese market.
Speaking on the day was Bo Ji, assistant Dean at CKGSB Europe – which is China's first independent, non-profit business school in London.
Bo Ji has helped many companies from diverse industries to establish a market in China. Although China is currently highly receptive to imported products, there are some easy rules to observe to ensure that companies have more success than even some of the multinationals that have famously tried and failed.
Here are some key learnings to know when dealing with export to China:
- 18–35-year-olds represent 67 per cent of Chinese consumption and this group like to travel and enjoy the western way of living, which makes conditions for export to China ideal.
- Although China is attracted to the quality and safety of western products, make sure your product is localised enough to attract consumers (e.g. package sizes, fragrance/taste are compatible with eastern preferences).
- Develop commercial partnerships in China – local partners help you keep up to date with China's interests and consumers so you can ensure your brand and product/s are relevant to the market; however, even multinational companies entering China have been unsuccessful because they opted to work with the wrong partner. The right partner needs to be really interested in your business and not such a big company that your business becomes unimportant to them.
- Play nice with the Chinese government! If you don't, you will be not be allowed to trade!
- Make sure your business model will work in China. Winning business models in China include:
- Regular free product offers to attract customers and gain their trust.
- Joining an existing trusted platform (e.g. Alibaba) that can offer you access to millions of customers.
- Establishing an 'ecology' model whereby your brand sells companion products or services that will allow you to sell an 'introductory' product or service cheaply to gain trust and momentum for customers to buy the rest of your products/services.
Related Content:
