Have you ignored private label business opportunities in China?

Entering the Chinese market is not an easy task and requires investment as well. Cost of entry varies per industry, which depends on regulation requirements and the competitive environment.

For instance, health food products, such as nutritional supplements and pharmaceutical products, or cosmetic products, such as antiaging cream and lip gloss, are all subject to import regulation by the Chinese Food and Drug Administration. Application is lengthy and costly, and many US companies are unwilling to invest in regulatory compliance before being able to sell.

Is there an alternative for US companies to achieve fast growth in this highly regulated industry? Yes. The secret is selling as a private label business to Chinese buyers.

Characteristics of Chinese buyers:
1. They have a very strong brand in China
2. Their main business is selling their products domestically
3. Their business grows rapidly, and they regularly launch new products
4. They have the know-how to deal with regulation compliance of China’s FDA
5. Their research and development performance cannot keep up with market demand
6. They buy market-tested products and formulation as private label from such developed countries as the USA and Canada
7. Their staff does not always speak English well or know how to reach out to companies with leading products in North America

Private label business is a best-kept secret. From our point of view, many Western companies have ignored this type of business as a way to capture market opportunities in China.