The internet has changed the business world
In is happening daily all over the world
Like the printing press over 650 years go
The printing press enable commutations to towns and cities. The internet enables commutations world wide.
Many buiness are not see the changes
Is your internet present support your trading or point in which you start trading?
The race is on world-wide to control and profit from internet explanation.
Given the indepenant deveopment of the internet in China there are two countries running the internet: USA and China
The internet is merging markets world-wide.
With a little time and knowlodge you can see the opportunity
Your local market in now available internationality
You no longer need to leave your office to trade overside your local market.

Want to grow your business in Chinese market?

The Chinese market is not just trading in China and in the past.

Your local market now has access to Chinese market.

This is due to;

  • Chinese international trading over the internet,
  • Chinese delegations traveling world-wide for trade and education,
  • Chinese people on holiday exporting the world and returning to China with gifts of expletive banded products,

You on longer need to visit China to trade with China.

If you are serious about China, you need to be visible on the Internet in China!

Most overseas websites cannot be seen in China. It is a straight forward process to correct this using Access to China products and services.

We have a unique understanding of the practical and legal web issues, restrictions and requirements in China and how to help companies have optimum web visibility there. We have over 16 years’ experience serving international companies working in China.

Our company was founded to help business be seen in China on the internet and to give software companies access to the Chinese market.

This year we see the start of our own Cloud Hosting Services in China. We believe this is a first for an overseas company in China.

Our knowledge and advice is free. Our Chinese platforms is available when you want to make a start in the Chinese market.

For your consideration

In working with businesses in North America, Asia and Europe I feel the importance of the internet has been lost on many companies trading locally and world-wide trading.

The internet is often seen as something your business needs a presence on and not the main point in which to start trading. Maybe we saw it as something that was important in the 90’s but we have move on, that was yesterday idea!

This is not the case; the birth of the internet was as important as the birth of the printing press. Like the printing press, the internet is finding different uses very quickly given that the internet, like the printing press, enables faster commutation of information. If the printing press gave access to towns and cities., the internet gives us access to the world.   

There has been a world-wide change in the use of the internet which has been developing over the last 10 years.

The USA has leads the way, “if you are not online you not trading”. This is followed by China, not Europe, with number of users over 800 million and growing. The developing markets of Africa and South America will follow soon.

There has been a growing and changing use of the internet driven by the youth of the world over. 20 years ago, TV, books, newspapers were the main sources of information. Today the growing demands for information, educations and purchases is supplied by the internet.

There is now a generation which grew up with the internet and is working in business. They are changing the way in which we trade locally and international. This change is so great that your local market now has direct access to the international market.

This change is not a “Big Bang” but the changes are happening daily and are often missed by business.

Based on our company extensive knowledge we suggest the following key issues need to be considered;

  • Be seen on the internet world-wide. What services on the internet have been developed recently? Can new services help to grow your business or are they going to take control away from your business?
  • The amount of information being collected has given birth to the term “Big Data”. How can you put this information to use for our business?
  • With each passing generation the world-wide knowledge grows. The world-wide demand for education and training is growing fast along with the growing populations. Is your business seen as a source for information?
  • The world-wide control of distribution channels. The use of the internet enables people to access products and services faster. New big businesses are keen to manage and control access to products and services. Do these new businesses create new business opportunities or effect your current trading?

Web page last modified: May 2018

 

 

Routes to the Chinese markets

routes to the chinese markets

There are different trading methods for Chinese businesses (B2B) and Chinese consumers (B2C) within both mainland China and in your local market as either Chinese internet purchase or visitors from China.

Before you start please look at your business and product / service branding in China. If your business branding is not registered in China, we recommended you correct this ASAP. All your Chinese marketing can be undermined by another company; either Chinese or overseas, by registering your business brand(s) in China and reproducing your products /services locally.

In addition, if you are selling goods inside China your product(s) may require local certification, e.g. power supplier need CCC certification. While it the responsibility of the Chinese importer to check and apply for any required certification it may be appropriate for your business to be part of the certification process so that you have ownership of certification.

Generally, this does not apply to products purchased from outside China and posted to a consumer in China. The major expectation to this rule is power rating; China voltage is 220V/50HZ. This is different to the many countries, including UK, EU, USA.      

Your local market; Chinese internet sales and visitors

There are many Chinese citizens visiting and been educational world-wide. This is normally where an interest in your locally marketed products starts.

People visiting your local market can see your products in the context of use, look and feel. Often this will be shared on Chinese social media and interest can grow.

Chinese people like purchasing from overseas suppliers as they feel the quality is better and the branding is genuine.

Developing business relationships with Chinese social media users with large followers will greatly help with sales in your local market. Engage with your local Chinese interest customers and supply them with your internet contents links.  Allow pictures to be taken. If you have your brand registered in China, you are protected long term.

Some products require a view / demonstration helps understanding; an internet media presence is critical e.g. video, on line brochure, CGI (computer-generated imagery), etc. hosted where the Chinese market can see it in China.

This is why Access to China is developing Wit travel and B2B66 in mainland China. Taking your business information into the heart of China.

Your local market; direct Chinese sales

Chinese visitors to your local market can be supported by;

  • Internet presence locally and accessibility presence in mainland China with a few words in Chinese introducing your business and key products / services.
  • Meetings at trade shows
  • Local trade organisations

The big advantage in this approach is you are looking for the Chinese market connections in your local market / country.

This is very cost-effective method of doing business and is often support successfully by local government and national trade organisation.

Direct selling to the Chinese market

Proactivity marketing / selling to the Chinese market in China. You still not need to visit China at this stage. The internet enables you to do much of the early stage work without leaving your office.

  • Chinese B2B marketing e.g. Alibaba
  • Chinese B2C distribution channels. i.e. e-Malls
  • Chinese social media e.g. WeChat
  • New overseas channels: b2b66 project.

This is the simple method of trading with Chinese market as it is the importers responsibility to make sure all the Chinese rules and regulations are followed. 

Appoint a local Chinese agent

A Chinese agent becomes your local agent in Chinese markets.

Often if you have services or products that maybe of increase to the Chinese market a local Chinese agent will approach your business.

A few important points to consider

  • Agents looking to make large returns on a few simple transactions normally only have a few contacts within the Chinese market.
  • Successful marketing and selling to the Chinese market is networking based. Find out as much as can about their network;
    • Person to person
    • Business to business
    • Social media
    • Chinese government contacts
  • Should you appoint an agent for the whole of China or a region / market.
  • Termination / cancellation agreement if the targets are not achieved. This agreement should be performance based over an agreed period of time.
  • Make sure that agent agreement allows, where appropriate, for B2C selling to continue in the Chinese e-Malls.
  • The agreement should allow Chinese customers to still directly approach your business. Many Chinese business will not do business with a Chinese local agent. This will also apply to overseas companies wishing to use your product / services in China. While this will need agreeing with the Chinese agent., you do want to close any distribution channels at the outset.

Appointment of a Chinese distributor

While all the above points apply to a Chinese agent, a Chinese distributor will handle your goods.

This will include importing, storage, local shipping, returns, servicing and repair, bookkeeping, payment etc.

Our recommendation is that all goods sent to China must to paid for before they arrive in China. If this is not the case, your business, at best, will be indirectly for running the distribution channel, i.e. if distribution channel is not successful you will not be paid.

Chinese businesses generally do not hold stock. Most goods are made and shipped to order. The exception is a wholesaler. This only works if there is ongoing demand for your products.

Spare parts and consumables maybe an exception to holding stock locally in China. We recommend an ongoing shipping relationship could include spare parts and consumables as part of the overall purchase from the outside. If this can be achieved your business not be responsible for stock in China.

To help in your relationship with potential Chinese distributors investigate the use of faster shipping methods to China; flying, train, etc. Reducing the leads time to China will help all parties manage order stock levels.

Chinese representative Office

A local Chinese office is where a potential Chinese customer can make contact.

The local office must have a good knowledge of your products / services or at best an understanding of your market.

This is good place to start if you are not planning your own business presence in China.

It’s supplies a local contact for business in the local time zone, local language support, etc.

A local office can also run local market campaigns, help desk, first line sales support, etc.

It is normally a cost-effective way to start a presence in China.

Many of the country trade organisations support local office representation as well as local trade organisations.

Chinese local licensing

Licensing your products or services to a Chinese business can be a cost-effective way into the Chinese market.

Many businesses over many years have been very success with this approach.

The key to success is protecting your business interest: Branding, patent, software, etc.

When protecting your business interest please make sure it is your company name on any Chinese branding certification, etc. and not the Chinese business you are working with.

The same points apply to local licensing. Make sure any agreement is performance related.

Chinese Joint Ventures (JV)

In China a JV normally involves creating a Chinese business which has all parties funding and running the business.

This was very popular way for a business to establish an overseas company in China.

Today, given that setting an overseas company (WFORE) in China is a lot more straight forward, there are lot less reason for doing this today.

The exception would be;

  • A JV applying for Chinese government funding. The local / national government can support Chinese business and JV in funding needs.
  • Local licensing and trading agreements that are not issued to overseas companies e.g. internet ISP agreement.
  • Large Chinese and overseas businesses were both businesses have a track record of success.

Like with many of these trading structures where your business is interesting in China the controls of business and management of funding in very hand to achieve.

We would recommend that the agreement between businesses has clear responsibilities and should be run as a project until JV is making a return. 

Wholly foreign owned Chinese enterprise (WFORE)

Creating your own business in China is a lot more straightforward than in past.

It creating a Chinese business you are making an investment in China.

This, along with JV, is the most costly both in funding and business executive time.

We do not recommend not doing this until your business has considered and tried some of the other options above.

If wish to look into setting up your own business, please see the section on Creating a Chinese Business.

Web page last modified: May 2018