China is en route to becoming the biggest importer of foreign products in the world. In fact, within five years, it will import more items than even the United States. It’s no wonder that Australian companies of all shapes and sizes are looking for a way to learn more about product export to China.
While research is crucial for any company considering entry into a new market, the complexity, unique nuances and sheer size of China can make it particularly challenging. The opportunities of an Asian export are too significant to ignore, but it’s important to make sure that you’re not stepping into your new strategy blind. The support of a professional exporting service like the one we offer at DRS and a little bit of extra guidance will give you the confidence you need to thrive in your new venture.
Here are our top 5 tips for exporting products into the Chinese market.
1. Complete Registration as Quickly as Possible
From the moment you start planning your journey into China, you should be thinking about rules, regulations, and registration. Registering your intellectual property as quickly as possible is critical, as China operates on a “first to file” system. If a competitor tries to register your logos, trademarks or product designs before you do, they will have the legal right to use them.
Before you start registration, speak to your export experts and discuss whether your current name and logo is suitable for a Chinese market. If your Australian brand doesn’t appeal to a Chinese audience, you may need to go back to the drawing board and re-think your strategy.
2. Rethink your Product and Marketing for a New Audience
Just because you’ve seen success with product in Australia, doesn’t necessarily mean that you’ll see the same level of adoption when you move to China. Re-think your strategy based on what you know about the Chinese market. For instance, Chinese customers generally prefer “sweet” flavours over savoury foods. Would it make sense to create a sweet version of your flagship product?
You can also re-consider the packaging you use to sell your items to a Chinese market. While Australian customers and many other clients around the world might like the opportunity to buy in bulk, Chinese customers like “grab and go” packaging. For more insights into your Chinese market, consider a retail market audit.
3. Make Sure Your Labels are Compliant
Compliance is crucial for a successful product export to China. Every food product imported into China needs to be labelled with simplified Chinese characters before it will pass through customs. There is a list of general rules you’ll need to follow with pre-packed foods. For instance, you’ll need to include information like:
- The name of the food
- The ingredients listed per percentage
- The country of origin
- The quality grade
- Code of national standard
- Special contents
- Production date, best before date, and end date
- Name of manufacturers or distributor
4. Build Relationships
Relationships are crucial for any part of building a successful business. However, companies in China prefer to partner up with trusted friends. This means that it might be helpful to approach grocery stores and retailers in the Chinese market through a distributor with a strong existing relationship in that space.
Find an agent or distributor that already has connections with the retailers you want to sell through in China. At Dynamic Retail Solutions, we have connections with countless distributors across China, and can even help you to launch your exportation strategy with an international buying showcase. Your showcase will give you a chance to start developing your own relationships with potential partners with tasters of your products, and insights into your company.
5. Be Resilient
Finally, the decision to start exporting products to China isn’t a small one. Even if you have a lot of support from the experts, and you’ve taken the time to do your research, you’ll need patience and commitment. Building a presence in a new country takes time, and you may see a few ups and downs along the way. After all, China is a unique market with very specific challenges you’ll need to face.
However, if you can maintain your resilience and stay strong through the exportation process, you will eventually reach your goals. Want to start your exportation journey? Reach out to the experts at Dynamic Retail Solutions.