The ongoing trade conflict can lead Chinese government to give more space to the foreign companies selling their products in China. Grabbing the Chinese market could be a gamechanger for your business. The earning capacity of Chinese citizens has skyrocketed over the years. China’s economic development has lifted hundreds of millions of Chinese out of poverty and resulted in a burgeoning middle class.
China’s economic boom over the last 40 years helped create today’s Chinese middle class. The growth of China’s domestic retail market is luring everyone from electronics to clothing brands to set up a business over here. With a population of 1.3 billion, China is the world’s second largest economy and in terms of buying power, Chinese are getting stronger and stranger with every passing year.
As a business owner, you cannot overlook the enormous business possibilities that China offers. The US and European companies can sell their services in China, sell and import their goods into China and have their products manufactured in China. Selling your products over here becomes relatively easy once you know steps to follow.
Explaining 3 Steps that can Help you Sell Product in China
STEP 1- Set up a WFOE in China–
Chinese market significantly differs from the Western market. The quickly you realize this fact will help you conduct your business in a seamless way. The Wholly Foreign Owned Enterprise (WFOE or WOFE) is a Limited liability company wholly owned by the foreign investor(s). How to set up a company in China is an immediate concern for any business looking to open or expand into the country. Businesses penetrating the Chinese market WFOE has great potential. On average, a WFOE set-up takes up three to six months. However, the length of the registration process varies depending on the choice of WFOE. If you don’t want to set up a WFOE, you can still import your product in China via a distributor or via your client whom has the relevant certification to import the specific category of products into China.
STEP 2- Find a product that has unique US or European features
Although Chinese love foreign products, do keep in mind not all types of products will get the same acceptability among the Chinese consumers. Chinese customers are extremely brand-conscious. If you are not a renowned clothing brand in the USA, chances are less that Chinese will trust your products. But that doesn’t mean you have no room in the Chinese market. The point is the product should has unique US or European features. For example, the style, design and shape of US and European made ties have their unique features and Chinese love this. The success rate of your product is relatively high compared to jeans, as most of the branded jeans are manufactured in China and have no real difference in terms of style, design and pattern. Here is a list of goods export to China from the US-
- Milk powder & other baby products
- miscellaneous grains
- Watches and other jewelry
- Niche fashion brands
- Agricultural products (soybeans – cotton – meats )
STEP 3– Pick a location-
China is a huge country, but you can’t set your business down just anywhere and expect to be a success. There are so many things you need to keep in mind while picking up the locations for setting up your business in China.
- The business culture
- Local Government
The vast bulk of business in China is centered on the major cities and economic zones. Beijing, Guangzhou, Shenzhen, Hangzhou, Wuhan and Shanghai are the major business, government, and industrial centers.
China’s fast-growing economy attracts thousands of foreign companies every year. The first step in setting a business in China is to check whether the same has been allowed or not and the same can be done very easily.