How to find customers in China?
China seems like a perfect market for ambitious manufacturers pursuing an expansion strategy. This idealized view largely stems from the allure of impressive numbers. The population of China, combined with the size and economic strength of its middle class, often drives decisions to enter this market. While we’ve mastered importing from China, selling to the country beyond the Great Wall remains much more challenging. Here, we’ll provide guidance on how to find customers in China.
Finding Customers in China
The approach to finding customers in China depends on the product you want to sell and whether the manufacturer plans to establish a local distribution or sales and marketing company to support local operations.
Consumer Products
Manufacturers of consumer products (food, cosmetics, clothing, fashion accessories, dietary supplements, toys, etc.) who do not plan to open a company in China should focus on finding an importer. This importer can either sell the product directly through their own online store(s) or distribute it via a network of sub-distributors. A popular model involves importers handling both sales channels simultaneously. Non-industrial technical products can also follow a similar sales strategy.
B2B and Industrial Products
Selling B2B products to industrial sectors requires a different approach. Marketing and sales efforts should target the specific audience for the product.
For example, let’s consider steel cables for elevators or cranes. Manufacturers of these devices should be included in the market activity plans. Conversely, selling complete elevator systems requires a different strategy. If the elevators are intended for installation by a private developer in a new office building, multiple stakeholders are involved. One key stakeholder is the building’s designer, who, if they find the elevator suitable, will recommend it in the project. Of course, the ultimate decision lies with the developer, who must not be overlooked in the sales process.
Industrial Solutions for the Public Sector
For industrial solutions targeting the public sector, manufacturers should focus on specialized companies that participate in public tenders.
How to find such companies in China?
Finding customers in China can be done in several ways. While trade fairs are the most popular avenue, they are not the only option. Below are some effective strategies:
Exhibiting or Attending Trade Fairs
Participating in trade fairs, where many individuals and companies from a specific industry gather in one place, is an excellent opportunity to establish business connections. Chinese trade fairs, such as SIAL, China Beauty Expo, or China International Import Expo, attract thousands of exhibitors and visitors. These events provide a unique chance to meet your future clients, provided you use the opportunity effectively. Many of these events also organize scheduled meetings between interested parties. Preparing a strong company presentation and a well-crafted offer in Chinese is essential to make the most of your “five minutes.”
Economic Missions
Economic missions are another tool that allows entrepreneurs to gain insight into the Chinese market and have direct meetings with key players in their sector. Organized by chambers of commerce or government agencies, these missions provide opportunities to visit manufacturing facilities, converse with potential clients, and understand local business realities.
Conferences and Networking
Conferences and networking events are invaluable for gaining knowledge and making connections. However, these are typically reserved for individuals residing in China who represent companies planning to expand in the country.
Direct Contact with a Curated Database
It’s also worth considering hiring local specialists or consulting firms, such as Salvane, to assist in identifying and reaching the right contacts. The Chinese market is characterized by a complex structure, and local expertise can be invaluable in establishing business relationships.
However, even a seemingly positive and friendly meeting does not always result in a business partnership. It’s quite common for entrepreneurs to feel optimistic after trade show discussions, only to later realize their enthusiasm was premature. Selling to China is a highly complex process. The key to success lies in the product itself as well as the manufacturer’s overall preparation and approach to the business.
Samo spotkanie, nawet pozornie wydawałoby się dobre, przyjazne nie musi zaowocować rozpoczęciem współpracy. Dość powszechne jest wielkie zadowolenie przedsiębiorców po rozmowach na targach, które jednak z czasem okazuje się przedwczesne. Sprzedaż do Chin bardzo skomplikowany proces. Klucz do sukcesu leży w produkcie oraz całościowym przygotowaniu i podejściu producenta do biznesu.
Trademark registration in China your first task
When attending trade fairs in China, India, Indonesia, or any other country, make sure to protect your trademark. Otherwise, you might find that you can’t sell your product there because your brand has already been registered. Of course, you can try to get it back it, but this process is time-consuming, expensive, and, worst of all, not always successful.