Exporting to China
China is already one of Australia’s largest export markets. And trade experts predict demand for Australian goods and produce to increase as the Chinese workforce becomes more affluent.
Right now China is seeing a huge growth in demand for capital investment, raw materials, technology, quality foods and lifestyle products.
But you’d be mistaken to think that there are quick profits to be made in China. Breaking into the Chinese market requires a patient, long term approach. It also calls for products tailored to China’s own particular needs. Exporters taking the trouble to understand these needs and adapt their products will impress Chinese officials and potential partners alike. This is a sure route to forging strong relationships for the future.
Laying the Groundwork with Preliminary Market Research
Red China will help you find answers to vital questions that need to be answered before going to the expense of setting up an export operation.
- Is your product right for the Chinese market, will it be affordable, will there be a demand?
- How do Chinese tastes differ from your home market?
- What kind of competition will you face?
- Which region of China should you focus on?
- Are there any particular regulatory obstacles that need to be dealt with?
- Are there any regulatory changes afoot that may affect your operation in future?
Finding business partners in China
One of the first and most important steps you need to make in setting up a successful export operation is finding a suitable Chinese business partner. A solid local partnership with an agent wholesaler or distributor will give you access to customers that would be very hard to find on your own. It will also help you build up the right connections for your company’s future expansion into China.
Making sure that you choose the right partner is key to your future success. You should be seeking established, well connected, solvent partners, who are in good standing with their customers, suppliers and the local authorities.
Red China will help you :-
- Shortlist potential partners
- Determine the size and scope of their operation
- Assess their reputation
- Assess their financial credentials.
Managing risk and transaction costs
Making sure you get paid for your goods
Red China can arrange for your goods to be held under bond in China and only released once you have received payment.
Foreign Exchange transactions and hedging Exchange Rate Risk
Sudden shifts in the value of a foreign currency can play havoc with the most carefully prepared budgets, turning profitable exporting arrangements into loss making nightmares.
Red China Business has can help you insure against adverse exchange rate movements by hedging your currency risk, enabling you to lock into profitable exchange rates for fixed period of time.
Contracts, payments, currency Exchange and hedging
Once you’ve found a partner, careful attention to detail is needed to ensure that your business relationship remains as profitable in practice as it looks on paper. While some suppliers may be happy to extend credit to overseas buyers, this is a risk that you may prefer not to take, especially with a new trading partner. You may also want to take steps to ensure that your brand name is not misused in any way.
Negotiating Contracts
We are happy to use our knowledge and experience to negotiate contracts with a Chinese partner on your behalf.
