1. Determine if There is a Market for your Product in China
A number of product categories are growing fast in China:
To determine your product’s suitability for the China market, analyze the market opportunity in terms of the culture’s characteristics, product availability, market potential and competition. If you are unsure if your product is suitable for China, contact us and we can help you.
2. Find Out What Regulations Apply to your Products into China
Import procedures are usually handled by buyers. However, it is always helpful to understand the process and see if your products need special attention for importing into China. Below are some commonly used resources for exporters wishing to sell their products in the China market:
3. Figure Out How to Price your Products
Take time to think about what your cost structure will look like. Be sure and build in the right elements in pricing your products. Your margins must be adequate to cover shipping, paperwork processing, and any taxes that might be incurred. Chinese buyers understand there are costs associated with bringing goods into China, make sure your products are priced to make it profitable for you to continue these relationships.
4. Define the Best Channel to Implement your China Business Most Effectively
There are several legal formats to gain business presence in China, and some of them take company establishment. If you are at the beginning of the China expansion process, take conservative steps. You can start by selling directly to volume buyers and/or a distributor or agent.
5. Formalize a Contract with a Chinese Buyer/Partner
In your contract, it is important to establish how much, when and how the buyer will pay for the product, as well as how and when the supplier will send the goods. The International Commercial Terms (INCOTERMS) will define the criteria for many topics in the contract, like logistics and insurance.