Business Ukraine looks to China: how to succeed in the market of China

Those wishing to enter the China market has always been a lot. USA, Japan, South Korea, France, Hong Kong, Taiwan — the main suppliers to the country with the world’s largest population. Ukrainian entrepreneurs are confident that their products output in China is difficult, writes UBR.

Indeed, the Chinese market is huge, and kind of saturated. It simultaneously attracts and repels business. But we just need to properly present your product and on this huge market will be a place for Ukrainian producers, experts explain.

The main Chinese myths

  • The Chinese market is huge, and any product sells out simply due to the high permeability

In fact, Chinese consumers were interested in the world manufacturers a few decades earlier than Ukrainian and at the moment all niches from premium to economy segments are already occupied. In the end, the consumer will have to fight, and with very serious competitors.

If in Europe waiting for new products, the Chinese too hard to catch, they are quite conservative in choosing new products. To enter this market need to understand the needs of the local buyer, adapting and changing your product for him. The Chinese love the product meets some of their needs. To a new they are ready, but it should not be something amazing and incredible. Those companies that will operate in China as well as in other markets without taking into account local specifics, will collapse.

  • Ukrainian goods to China have a positive image

The Chinese are accustomed to the Association, and generally perceive the country for those items that you can buy at home. Ukraine, unfortunately, until now, almost did not show itself in this field — our brands in the Chinese market is very weak.

The Chinese have almost no interest in Boxing and just starting to play European football, and events like the revolution in their society are not welcome. Therefore, Ukraine had virtually no chance to get into the information space of the PRC, and the majority of its inhabitants have no idea what this country is.

For the average Chinese consumer Ukraine is not associated with any products. Chocolate Chinese prefer Swiss, and honey and new Zealand. The main problem is that the promotion of domestic products in the Chinese market, no one subject does.

  • Neglect of monitoring, research and expertise of the Chinese market

China is large and its market in its structure is heterogeneous. There are many segments, each with a fairly high level of competition.

Most of the manufacturers just want to sell products from a warehouse, without investing the power nor the logistics, nor the customs, nor in marketing research. The only exception is the big players who can afford to keep the staff directly in the PRC, to engage in merchandising, to study the market and do work in the future. But medium and regional businesses are forced to save on everything.

A major Chinese company is also not ready to assume the risks and costs associated with promoting an unknown brand, so they prefer to take goods “on consignment”. Who will inoculate the Chinese consumer truth that in Ukraine, too, is honey and he is better than new Zealand or Thailand — is unclear.

More effectively in the PRC market there are intermediaries. They choose and implement a specific strategy of product promotion (online segment, exit to large retailers or small shops). In some cases, are engaged in the naming and branding of the product, but their services can not be cheap.

The specifics of the Chinese market is such that requires separate competencies related to cross-cultural and language nuances.

  • Produce what sells, not sell what is produced

In the consumer basket in China — where food, beverages, personal care items and household products make up 80% of purchases of consumer goods, the most notable trend in recent years has been the replacement of the goods of cheap price segment of more expensive and healthy products of premium brands.

For the Chinese consumer is not so important the price of the product becomes important to the reputation of the country of origin of the product, its manufacturer and appropriate quality.

How to sell to the Chinese “a better life”

Promising products in the PRC market also became bottled drinking water, juices, baby food, confectionery, cookies and ice cream. However, when planning a triumphant return to the Chinese market for these products, manufacturers need to consider, first of all, the fact that the Chinese already sufficiently spoiled, and poorly promoted Ukrainian products, in addition to low prices, the other advantages for local consumers do not yet have.

Looks the most obvious bet on green products. However, a single, memorable and in a good way viral slogan is not yet available, but alone exporters are forced to count every penny, with the PR of this level to cope not. Without complex marketing strategies, backed by financial resources, Ukraine “Shine” to occupy a niche not environmental goods in the premium segment and economy class for those wishing to purchase “branded, but cheaper”.

Unnecessary haste

To exit the Chinese market will take time. To this we must be ready, because Chinese consumers are wary of foreign goods. Someone in a hurry, he loses. For a short time to achieve significant results in such a crowded market is impossible — it is necessary to work for the future, to acquire bonds, to bump, to study the market. And then on the shelves of major supermarkets, the Ukrainian production will be able to compete with global brands.

In achieving these goals will help industry exhibition. It’s much easier to find the right Chinese partner. in the case of China, it is often more efficient to go with the state. It is desirable to use the maximum resources — to enlist the support of the Embassy, go to the manufacturers Association, contact the chamber of Commerce in China, etc. the Chinese respect power and business operates within the framework of decisions taken by the regional authorities.

In partnership with the Chinese foreign companies, the main motive is not always money. Sometimes the ability to “light up” in front of regional authorities and receive a special preference for the Chinese is much more important. China is very important long term relationship.

China is changing rapidly and ambitious. In business there are more exceptions than rules, but this country offers tremendous opportunities. Hurry up to catch the Chinese wave and remember that the important thing is to act. Ukrainian business in this ocean of consumers, too, can and should be a place, if our producers will be active and will not wait and watch as other countries and manufacturers are conquering the Chinese market.