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Exporting to China

 

 

 

 

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As the global financial crisis continues to bite, China is  one of the world’s only markets that offers stable growth.  Partly as a result of inherent economic strength, and partly as a result of the successful stimulus package, China offers a large and growing market for sales to the public sector, corporations and consumers. 

 

There are huge opportunities for export to China from your home country.  In some cases, this may be a stepping stone on the way to developing a manufacturing presence within China; in many cases, though, your home country may have competitive advantages that make imported products more attractive to the Chinese market. 

 

Imported products and services are very attractive to Chinese consumers, companies and government organisations.  Some of the areas in which imports are especially attractive include the following:

 

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Food: Paranoia over the quality of Chinese food has made imports particularly attractive.  Countries with an image of trustworthiness are popular sources of packaged food; countries with an image of cleanliness and purity are popular for both fresh and processed food.  Exotic foreign food is also gaining popularity. 

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Wine: Imported wines carry a cachet that foreign wine cannot match.

 

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Luxury goods: from food to handbags to luxury cars, foreign brands still have an image that no Chinese brand can match. 

 

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IT equipment: while China is strong in the manufacture of computers and some networking equipment, manufacturers of high-end IT equipment still have a major competitive advantage.

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IT services: Advanced IT implementation and consulting services are usually bought from the best companies in the industry, many of which are foreign.

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Medical equipment: a limited number of foreign companies have the necessary expertise to build and service high-end medical equipment, from PET and MRI scanners to healthcare information systems. 

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Architecture: As cities compete to develop flagship buildings, the best foreign architecture firms are in a great position to benefit.

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Specialist construction: Global firms that specialise in particular areas of construction – such as nuclear power stations, railways, airports, specialist factories, stadia, and other buildings and infrastructure – are valued for their expertise.

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Specialist consulting services:From business process management to change management, through to industry-specialist services, Chinese firms are keen to buy the services of the best companies, and recognise that many of these companies are foreign.

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Education: China is sending more and more of its students overseas: education is one of the most lucrative industries for several countries in their trade with China.  

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Tourism: As China’s economy continues to grow, more Chinese tourists are spreading their wings: they are eager to experience foreign cultures, and keen to spend their money abroad 

 

Obviously, this is not an exclusive list.  But it demonstrates just a few of the export opportunities that exist for foreign firms. 

 

If you do choose to export to China, you will need to understand the local market; tailor your products to fit; identify local customers; find importers and distributors; and develop a sales strategy.  Sinogie can help you through every part of this process.

 

Is there a market for your product?

 

Sinogie’s market research services can help you establish whether people in China would like to buy your product or service. 

 

Our industry research services can help you establish which of your competitors are already in China, what strategies they have used, and whether and why they are succeeding or failing in China. 

 

How should you tailor your product for China?

 

Our market research services can help you decide whether you should leave your product as it is, or make changes to increase its appeal to Chinese consumers. 

 

We can also work to establish how you should price your product; how you should package it; and how you should promote it. 

 

How do you get your product into China?

 

Our industry research and government policy analysis services will establish whether you product or service must comply with specific regulations; whether it can be imported, advertised and sold in China; what duties and taxes it will be subject to; how long it will take to gain import and sales approvals; and what you can do to smooth the process. 

 

How should you import and distribute your product?

 

If you wish to work with a local importer and distributor, Sinogie’s partner search services can help you find the company that best suits your needs.  With the findings of our market research and industry research services, we’ll already know which market you should be targeting, and how your goods should be sold.  We will then work to find distributors which can provide you with the most effective access to the right sales outlets, and which have the qualities you need.  

 

How is your brand perceived in China?

 

As you develop your sales in China – and elsewhere in Asia – our media monitoring services can help you keep track of how your brand and those of your rivals are covered in the local press.  Ongoing market research can help you keep track of consumers’ perceptions of your product, and to decide whether to maintain or change your strategy. 

 

Is your product safe from counterfeiting?

 

Sinogie can help you develop strategies to protect your intellectual property: by implementing effective legal, retail and promotional strategies, is it possible to protect yourself.  Sinogie’s intellectual property unit can also help track down, close and punish counterfeiters. 

 

Could you sell to the government?

 

A subscription to Sinogie’s China Tender Bulletin service gives you access to invitations to tender from local governments across China, many of which are keen to buy foreign products and services. 

 

Australian exporters

 

Australian companies which plan to export to China can benefit from the Export Market Development Grant.  Many of Sinogie’s services, including market research, media monitoring, industry research, partner searches and subscription to China Tender Bulletin, are eligible for the EMDG: you may be able to claim back a significant portion of our fees from Austrade.  To find out more, click here.  

 

 

 

 

For more information on how Sinogie’s services can help you export to China, please e-mail us,

or call our Sydney sales office on

+61 2 8705 5435.

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