Chinese Distributors are not “investor” !
Chinese distributors are in search of well known brands to sell up in record time. If a product does not work, they will tackle new product and will not want to take back the old product. For distributors, the most important thing is to see results quickly. They can simply work for years with the same brand or the same supplier but they will never go invest in the supplier’s brand. Their role is to distribute the products so they will simply do their job. Chinese distributor expects its suppliers to have a quality product with good packaging, precise positioning and a good reputation.
Chinese Distributor are not here to develop the Branding of all the brands they represent
The reputation of a brand or a product enormously account for a Chinese distributor. Chinese distributor will never work with a brand with a bad reputation because Chinese consumers also attach great importance to the reputation of a brand or product. Indeed, the Chinese are very connected and will often do a product search on the internet before buying. Other customers will influence their buying process. Their main platform to check the reputation of a product is first Baidu but especially social networks. In terms of cosmetics, in China we see a lot of counterfeits so reputation is even more important in this country for Chinese distributors. Chinese distributor will not choose a product that is not known by Chinese consumers because it will not benefit. The first goal of the Chinese distributor is to develop the market and make maximum profit.
They have no loyalty to a brand/ partner
Chinese retailers can also work well for years with a brand and can decide to leave it in the next minute. Which will play in favor of the brand is its reputation. Distributed brand can sometimes have a turnaround: reputation deteriorates or its sales decline. In this case, the Chinese distributor decided to abandon the brand and turn to new products. Chinese distributors do not want to invest in a brand because it is a risk-taking for them. They prefer to work with major brands of cosmetics to be sure to have a return on investment. The reputation of a cosmetic brand is very likely to change, one negative review on the product and the brand may lose much of its reputation.
Chinese distributors are very strict regarding how to distribute and to choose products. Although they have worked for years with the brand and the brand suddenly do not makes more sales, they immediately stop working with it for fear of losing profits.
Marketing is not one of their skills
As the name suggests, a distributor’s role is to distribute the products, they will never do marketing for a brand. It’s not their responsibility to help a brand in a bad position, on the contrary a brand that can not promote themselves will not be chosen by the distributor. The distributor wants to make profits easily therefore seek an easy mark to distribute.
The cosmetics market is one of the most growing markets in China, all international brands wish to enter the Chinese market, but it is not always easy. Chinese distributor therefore has a choice in the cosmetic brands to distribute. You should know that the Chinese distributor wants to make maximum profits in a short time so if you are a cosmetics brand must be up to the Chinese requirements. We must learn to adapt to the Chinese market and especially that most Chinese distributor sales will reach more maximum your brand will be on center stage.
Korean cosmetic products are very popular in China. Chinese distributors are willing to work with Korean brands because they know that these are quality products and tailored to the Chinese market, which will bring them a quick profit.
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