Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Consultant Presentation 2012 Nashville Meeting Market Access Suggestions Part IV
Market Access Suggestions • Maintenance & Expansion • 1. Adjustment to package, taste etc. based on feedbacks • 2. More promotional and marketing activities on the Chinese market • 3. Penetration to second-tier and inland regions Step 4 • Exporting to China • 1. Select quality importer for cooperation for the first shipment • 2. Start from first-tier cities with developed market & consumer base • 3. Collect feedbacks from first sales trial Step 3 • Access Trial • 1. Establish primary trader contact and introduce the products • 2. Sampling & Market Trial • 3. Platform: trade show, trader meetings, showcase event etc. Step 2 • Market Research & Evaluation • 1. In-depth understanding & correct evaluation of marketability • 2. Through market visit, research etc. Step 1 Market Access Procedure
Market Access Suggestions Full Payment Letter of Credit Deposit L/C is the most frequently used method of payment during international trading and is preferred by Chinese traders as well. U.S. companies need to be cautious for the payment of first shipment. Full payment could be requirement before giving the bill of lading When qualification of the importer has been verified, the payment could be adjusted to a certain percentage of deposit before shipment. Payment Issue
Market Access Suggestions • Importer Qualification • Select experienced importer for first market access • Utilize its existing sales network, facility like cold chain system etc. 1 • Network Development • Entrust a regional (if possible national) agent • Allow the agent to develop its own sub-distribution network to avoid price war etc. 2 3 • Quality Control • Strict control over product quality like food safety • New regulation on food ingredient & additive in China 4 • 4. Supply • Consistent supply is crucial to long-term development • Avoid fluctuation in price, volume and etc. Key Points
Market Access Suggestions Mark-up 15%-30% Mark-up 15%-30% Exporter Sign Contract with Chinese Buyer Mark-up 20%-40% Mark-up 20%-40% Mark-up 40%-50% Mark-up 20 - 30% End-Price Distribution Cycle & Mark-up
Market Access Suggestions • Recognition of brand image and product image is improving in China • Successful cases are easily to be copied by local companies, affecting the brand. Challenge • Registration of the trade mark in all aspects including for commodity as well as for advertising • Apply for the intellectual property protection if the product involves any special techniques Measure IPR Issue