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Entering retail market :
Anyone visiting Shanghai or Beijing on regular basis is amazed by the speed of development of new department stores, malls and retail places. And the trend is now spreading to many other cities in most provinces, including the central and western parts of the country.
Still, selecting the right retail spot is critical, not all retailers are equally successful, the segmentation has to be well understood.
Convincing and motivating local distributors to take a new brand is becoming increasingly difficult. And it comes with rising expectations on the Chinese side in terms of pricing, marketing support, rights of licensing,…
The entry on the market has to be extremely well prepared, even if it takes some extra time. A failure of a first attempt will be noticed by the people in the trade and could block the way to future opportunities.
Most Chinese distributors have limited knowledge on the foreign brands, apart from the main big names. They are exposed to a mix of true international brands, Asian brands with a Western image (from Hong Kong, Korea,…), local brands and many ‘me-too brands’ and copycats. It takes times and efforts to bring the necessary knowledge on the brand to the local partners. A close relationship is essential to this communication and to build up confidence and motivation.
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