Is the 1.425 billion population China domestic market approachable for Foreign SME ?

Flashback the 2nd day of our STGG June trip, Intereras along with over 40 brand owners we spent one full day in Hangzhou International Textile and garment Supply chain Expo. It was one of the biggest expo for domestic China market. We had an executive summit and a business matching section during this Expo. However, the Business matching section didn't go as smooth as we think.

Inside the HIT Expo, We had a China-Vietnam Textile & Apparel Executive summit, cohosting Together with China Chamber of Commerce for Import and Export of Textiles (CCCT), Vietnam Textile and garment Association (VITAS) and Intereras, we had a China - Vietnam Textile & Apparel Executive Summit.

We had over 200 textile and garment company from China joining this summit. A lot of are either observing or considering to move part of their production to Vietnam due to policy and risk management.

During the business matching section, we have all the top E-commerce channel such as Tao Bao live stream, Douin (tiktok in China), Xiaohongshu, and along with more than 50 MCN companies and live streamer who have over million followers. They are proven to be very effective sales channel in China. However, there are multiple things that are needed before those channels can sell for the foreign brands.

1) The Cash flow, how does those foreign brand receive money in China?

2) Storage, where will you storage your items?

3) Logistic, how does your good reach to the sales channels?

4) Legal, Logo right and brand name and product design patent.

Typically, for the foreign SME who doesn't want to set up their company in China, they may also find a 3rd party as a trader to cooperate with those sales channel. But to roll with a bigger quantity, then those 3 steps is better off handling by your own team.

At the same time, it supposed to be based on our own scale as well. If you are a fashion designers or a small brand, it's better that you work with traders and 3rd party so that you can optimise your cost, just need to ensure you register for your brand name and product design patent before giving them to any partners.

In the upcoming articles, I will mention some of the partner that we might be able to cooperate and steps on how to penetrate with China domestic market as a foreigner brands. Stay tuned!