Taking Your Business in China to New Heights

To take advantage of all the opportunities China offers in terms of manufacturing and distribution needs, leaders need to explore all their options and how to navigate rapidly changing and often unpredictable waters. The potential for growth is staggering, but you have to know where to look. Here are a few suggestions based on my 30 years of experience in China that can help you take your business to the next level!


Cautiously capitalize on incentives 


Tracking economic zones offering incentives like tax breaks and promises of reduced inspection time can be tricky. In China’s top-down governance model, policies can change overnight.  Often China tries things in a controlled area, tweaks the model, and then scales it. Changes happen abruptly which can create disruption as well as opportunity.

Example: China opened the first cross-border eCommerce trade zone in Hangzhou in 2015, followed by 12 more in 2016.  While applauded as a positive move by foreign companies interested in selling here, China disappointed many by restricting the types of goods that can flow through these zones.

The bottom line: Find eyes and ears on the ground with local connections whom can help you nimbly adapt to changes in the marketplace.


Sell/brand build in China


China has a huge and growing middle class for B2C and supply chain B2C.  In 2013 China surpassed the USA in eCommerce volume, and will soon overtake the USA and Europe combined.   In China’s case, past history is a reasonable predictor of future results in sourcing china manufacturers.

Example: Fifteen years ago we started sourcing components for a fitness equipment manufacturer. Eight years ago we floated the idea of selling equipment to the Chinese market.  We started making it easier and faster for Chinese customers to receive the product. Each quarter we fine tune customer experience. With five-star ratings on eCommerce platforms, the client has reaped double-digit, year-over-year sales increases.

The bottom line: China is open for business more than ever.  Make it easy for customers to find, buy, and receive your product. Building trust with the customer – one transaction at a time – has been a successful formula for growing brands and revenue in China.

E-Commerce Differences in China from Christina Li on Vimeo.

Socrates said “Education is the kindling of a flame, not the filling of a vessel.”  For 30 years and counting… clients have fuelled our understanding and helped refine what we know.  It’s about finding a partner with shared values who will operate at the speed of trust.

There’s never been a better time to invest in Chinese manufacturing and find new opportunities to reach clients and customers on a global scale. Let the experience of CMD help transform your manufacturing and distribution solutions so you can accelerate your business.

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