What Are Chinese Importers and Distributors Looking For? – A message to foreign companies looking for China distribution

When companies have talked to us about distributing their products in China, the most common request has been to find someone there who will buy their products and who will also take care of sales and other operations within the country.

There is nothing wrong with this request, but few companies understand what it takes to get someone to buy your product. I often find that companies looking for an export opportunity to China tend to focus on getting someone to buy in the short term, while Chinese distributors tend to think long term, asking if you are a good partner for them.

Let’s take a look at what a Chinese distributor is thinking about. Understanding their thought process will help you determine ways to approach and engage them.

When a Chinese distributor is presented with a brand and product line from a foreign country, the following questions are likely to be asked:

1. How well do you do in the domestic market?
2. Do you have brand recognition in the domestic market, and what markets are you selling to?
3. What is your market share?
4. Who are your customers and main distribution channels?
5. Do you sell to other countries, and how well do you do?
6. Has your business been growing?
7. What makes your product different from others seen in China?
8. Are you visible online?
9. What kind of initial and ongoing support can you provide?
10. Most importantly, is your company committed to doing business in China? For instance, are you able to customize your product to suit Chinese consumers? Are you able to respond to any unique Chinese demands? and more.

These preliminary questions have to be addressed quickly before both parties can decide if they can form a partnership. Distinguished Chinese distributors today have the opportunity to see many products presented to them by manufacturers from all over the world. You must be very well prepared and at the top of your game, from initial contact to each step of negotiation with your potential partner.

Although Chinese distributors are interested in established brands and market-tested products, this does not mean you won’t be able to attract viable Chinese distributors if you are not Coca-Cola. You may want to differentiate yourself in such areas as product innovation, company history, and flexibility in product customization.

Now you know what is on the mind of a Chinese distributor. In my next blog post, I will shed light on how to find and qualify a Chinese distributor. Please come back.