Marketing Strategy in China

For companies not yet present on the Chinese market, there are several different options how to explore this vast market. There is no one-fits-all approach; the optimum approach depends on each company’s products and available resources. Sales to China can be done without a physical presence in China, via distributors or e-commerce. The next level of commitment is a representative office in China, which does not directly engage in profit-generating activities, but is responsible for promotional activities, directing and supervising sales of distributors and serving as a point of contact for customers. Foreign invested trading companies are responsible for profit and loss; they procure products and services from the headquarters or third parties and sell to Chinese final customers directly or via sales agents. Many MNCs have opted to manufacture in China, either exclusively for the Chinese market or also exporting from China to the home market or third countries. In any way, the manufacturer has the legal responsibility that his products comply with Chinese legal requirements, especially mandatory Chinese standards, that may deviate from international ones.