You want to sell to the supermarket in China, and search for a partner that knows how to do it, and manages everything for you. I think you might be at the good door.
The Chinese retail market: Navigate in a dark Sea
China is a huge market with strong potential for any brand that wants to distribute its products through retail channels. With more than 1.4 billion people, China represents the world’s second-biggest retail market (more than 20% of the global retail market!).
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China is even expected to become the first global retail market, surpassing the US in 2021. According to Statista, in 2018, the revenue from retail reached 12.5 trillion yuan in China. This indicated an increase in revenue from 12.3 trillion yuan in the previous year.
The retail market in China is not only huge, but also promising: a high growth rate, increasing revenues, a constantly growing population to satisfy, … China will never be enough of new products and foreign products are of course welcomed.
One of the best strategies to reach Chinese consumers is to sell your products directly in Chinese supermarkets, where local people are already used to go.
Foreign retailers as Walmart, Tesco, or Carrefour are also good to distribute your products, but being present in local supermarkets can make you more visible to Chinese consumers.
5 of the Chinese retail leaders
- Sun Art Group (More than 8% of market share)
The Chinese retailer leader specialized in food that made a total sales revenue in the first half of 2018 of about $8 billion. Owns more than 450 hypermarkets.
- RT-Mart (about 7% of market share)
A Taiwanese retailer owning more than 300 hypermarkets in China. RT-Mart is strong in its past joint venture with Auchan, thus operating with Sun Art Group.
- Younghui Group
Present in 144 Chinese cities with more than 500 supermarkets, Younghui is more focused on food retail.
- LianHua supermarket
Belonging to the Bailian Group, LianHua supermarket is listed on the Hong Kong Stock Exchange. After buying its mother company, LianHua has now over 5 000 stores in China.
Owning over 700 stores, WuMart Group’s strategy is different from its competitors since its main target is middle and low-end consumers.
But how can you manage to sell your products to one (or several) of these Chinese supermarkets? Here several steps you should follow.
1) How to send your Brochure
Depending on the retailers with whom you want to work, you can easily find their contact information on their website. It can be on their Chinese website, business website, … You can also try to see if you have any connections with them through your network, which can make things easier for you to get in touch.
2) Directly meet the suppliers’ relations manager
After a short exchange you had with the manager/the suppliers’ relations team, the next step is to meet him/them face to face.
Give yourself the chance to introduce yourself and your products in a real interview and do not neglect any aspect of it. From your professional appearance to your presentation, the choice of your words and your answers, … You must prepare everything well before your interview.
Do not hesitate to take some of your products’ samples with you, and to come with a business partner that can speak Mandarin if you do not speak the language.
3) Work with a local partner in China
Because the language barrier can be a huge obstacle when doing business with the Chinese, we strongly recommend you to be accompanied by professionals who will be able to help you not only for translating your words, but rather from accompany you in the whole process of your integration in the Chinese market.
A cosmopolitan team composed of native Mandarin speakers and Chinese market professionals as the GMA team could help you in this challenging process.
The GMA team will also help you in the compulsory step of any good brand getting in China: your digital marketing strategy.
If you need a local partner
we can help you to deal with Chinese supermarket.
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