Opportunities or Challenges of China Distribution

Chinese consumer goods market is massive. China is evolving into a consumer economy with ample opportunities for investing. The increasing economic integration and interdependence of countries around the world constitute the driving force behind common prosperity.

In this pursuit, China, as the world’s second largest economy with an economic aggregate exceeding 15% of global GDP, plays a pivotal role. In fact, Chinese development will, more or less, impact the development of other countries.

An Overview of China Marketplace

At the moment, China economic growth is rising steadily with high consumer activity and low inflation. It is now among the top economy in the world and one that has fastest growing markets for goods and services.

The main reason for the good performance of Chinese economy is due to huge investments in infrastructure and high amount of exports. In the year 2006, China received high FDI (Foreign direct investment) amounting to $63 billion.

Since the year 1985, China has over the years recorded a consistent growth rate of 9% every year making it the fastest growing economy in the world. For instance, China increased its industrial output by 66% which was substantially greater than the neighboring countries like Asia which recorded 35%.

This increase in performance in China was majorly as a result of the impressive performance of production industry. The entry of china into the world trade organization further boosted its image as a global center for low cost products and an authentic consumer market.

Top leading companies across the world have huge investments in China. China large consumer market is projected to rise not only at the moment, but also in the future.

Opportunities of China Distribution

China distribution presents immense opportunities for businesses. They include:

China distribution presents immense opportunities in the market. First, China distribution has led to the emergence and growth of the retail sector. The China retail growth enables middle class consumers to access and purchase various products.

Due to china distribution, many consumers anticipate their purchases to be convenient and easy. Thus, many companies that operate in Chinese markets must ensure that they distribute their products and services not only in the urban areas, but also in the rural population.

Secondly, China distribution of products have enabled business to create effective transport channels that targets vast number of consumers at the market place.

China distribution is important because its major goal is to make sure that products reach the consumers market fast and efficiently. Similarly, Chinese suppliers can only distribute products efficiently if they adopt distribution channels and logistics operations.

Challenges of China Distribution

There are a number of challenges that are linked to China distribution. They include:

Communication Challenge

Communications is an essential component in distribution of goods and services in the market. One of the fundamental challenges is communication. Marketing communications entail advertisement, sales advertisement, and personal challenges among others.

Chinese customers, in most cases, are not easily convinced and therefore it is important to create the right communication channels. Brand values are normally established by word of mouth.

Cultural Challenge

China is one of the largest markets across the world. It has strong leadership, intelligent people who are very hardworking. The country presents traditional, political and business cultures which are unique and distinct from each other.

Various cultures emerge from Confucianism, communism, Buddhism which has affected the beliefs of various people. This new mix of cultures represent billion people who purchase food and clothing above subsistence level.

Marketing opportunities usually exist in these cultures if business will be cognizant of various challenges and push products and services to billions of those inhabitants.

Regulatory Challenges

There are concerns that tight regulation in foreign countries has undermined the level of distribution in china. Beijing gathered commitment to open its domestic market to enable distribution of products. International firms have strict regulation about fair market access.

There is no transparency in the regulatory process. It is difficult for businesses to plan for changes in the market structure. There have been cases where businesses have had to cope with tax exploitation and bias in china market.

Segmentation Challenge

Marketers are gradually beginning to realize that china is not a single homogenous market but heterogynous mass market. The World Bank has managed to rank various market segments in China such as southeast, Bohai, south west, south east among other regions. All the regions offer unique challenges and thus the six regions must be identified.

The challenges mentioned above can have adverse effects to the China distribution if something is not done. It is therefore important to ensure that businesses adopt a comprehensive approach to ensure that distribution of product and services is a success.

Invest in the distribution of the products. Distribution of consumer products is essential when entering new markets.

Consumer products can be distributed to hypermarkets, supermarkets, and retail stores across the country many consumers live in the peripheries and major cities. Hence, effective distribution is essential to capture new market frontiers and increase customer base.

Building a strong brand that is characterized by high quality and affordable price can attract many consumers. Multinational businesses will certainly face fierce competition in foreign markets.

Therefore, having a strong brand will make it easy to penetrate these markets. For instance, in Brazil, Frito-Lay Inc. has managed to dominate the market by building its leading brand.

Hot Distribution Product Category in China

Fashion Jewelry

Distribution fashion jewelry become more and more popular, and China has too many jewelry manufacturers which provide cheap and high quality fashion jewelry. And perfect logistics environment makes transportation more safe and fast.

Infant and Baby Carrier

One recent product trending with new parents is the baby carrier. Since strollers are big and bulky, some parents are opting for smaller, compact harnesses to carry their newborn for a few hours.

Google Trends shows we’re close to hitting peak interest for this product, so if you’re looking for a top-selling product with validated demand, consider acting fast.

Women’s Clothing

Clothing has always been a huge market, especially women’s clothing. Distribution women’s clothing China is also popular, cause China possesses so many clothing factory and wholesale clothing market, which is deserve to visit!

Fashion Bags

You can find all different kinds of bags in China wholesale market, like handbag, backpack, shoulder bag, wallets and so on… Therefore, if you want to distribute fashion bag, come to China!

Popular 5 Suppliers in China

Company	Category	Main language	Location
Nihaojewelry	Fashion Jewelry & Accessories	English & Spanish	China
Chinabrands	General	English	China
Globalsources	General	English	China
Dhgate.com	General	English	China
Madeinchina	General	English	China

Nihaojewelry

Nihaojewelry is one-stop wholesale fashion jewelry. It offers consumers a wide variety of consumer products such as hair accessories, fine jewelry, fashion bags, women’s clothing, women’s shoes, fashion wear, swimwear among other products.

Nihaojewelry has over one million product designs which is sold in the domestic and foreign markets. First delivery of products has been a major reason behind Nihaojewelry success at the market.

If you want to start a fashion jewelry distribution business, Nihaojewelry is your perfect choice. Browse this article: How to Start One Fashion Jewelry Distribution Business?

Chinabrands

China brands contain vast number of consumer products such as tablets and accessories, watches, women’s clothing, Bags, shoes, beauty products and Kids ware.

They offer one stop shopping solution for customers. Products of China brands can also be shipped abroad and therefore, is not limited to local market.

Globalsources

Similarly, Globalsources supplies various products into the china market. They include accessories, bags, fashion and foot ware. Globalsources has been at the forefront in supplying mobile phones and other electronic gadgets in Chinese markets. The company has invested in innovating new products such as LEDS, smart living equipment and optoelectronics.

Dhgate.com

Dhgate.com is one of the fastest and reliable supplier of various consumer products such as cellphones, accessories, jewelry, watches, sports, bags, apparel, and cameras among other products. They offer quality products at a slightly lower price in the country.

Made-in-china

Made-in-china connects buyers with suppliers. They have different categories of products such as motorcycle parts, Transportation, sporting products, consumer electronics. The company has 1.9 million products that offer one-stop shopping solution.

Conclusion

Fashion jewelry, accessories, costume jewelry, watches, women’s clothing, women’s shoes, fashion bags, swimsuits are among the products that are distributed across the world.

China distribution will enable businesses to capture new market frontiers and establish themselves in china. For a long period, many companies that operate in foreign markets must ensure that they distribute their products and services not only in the urban areas, but also in the rural areas.

So if you want to start on distribution business, start from China! You will find a new world here. Welcome to leave a comment, Nihaojewelry happily to become your partner.