Before Exporting to China: a Two-Step Guide

Before even exporting to China, deal with the logistics part, design and implement your marketing & communication strategy, a company has to go through few but essential steps. Sometimes overlooked when exporting,  they however are detrimental to prepare thoroughly before even exporting.

As companies best partners for their internationalization process to China, ASI Solutions has put together a comprehensive summary on what one needs to know before going abroad. Being aware of these key steps is key to ensure a smooth export process.

Step 1: Make Sure Your Product Can Be Imported

China classifies products in 3 categories when it comes to them being imported within its borders: prohibited, restricted and permitted goods.

Apart from products whom prohibition is obvious (explosives, arms, articles coming from disease-stricken areas, etc.) some items considered as more common are also restricted.

Raw materials for plastic, polyester, raw materials for chemical fibers, cotton, and some steel products fall into this category. As restricted products, they require quotas and licenses.

As such, one has to check if the products to be imported are eligible according to Chinese legislation.

Step 2: Conform to Chinese GB Standards

It is then necessary to make sure that your product is in compliance with the GB standards (国标, Guóbiāo). These National Standards have been developed for technical requirements and serve as basis for testing products. Depending on their prefix code (GB, GB/T, GB/Z) they are identified as mandatory or voluntary. 85% of the standards are voluntary, however you are encouraged to follow them anyway as it can enhance the brand of your product.
Most of the GB Standards are derived from the ISO norms, however rules are stricter when it comes to products such as edible ones, cosmetics or have an impact on the safety.

What does this compliance with GB standards imply?

 

Testing

The process for ensuring that they meet the requirements often include testing (the testing applicable depending on the category the product itself falls into). Your product should then be sent to a certified laboratory located in China.

 

Labelling

Specific labelling requirements apply when it comes to importing a product into China and again, the latter depend on the category your product falls into.

  • For a food product to be imported, the label must be affixed on the original packaging. This label should be in Chinese and include information such as the production date, the expiry date, the country of origin and the nutritional value.

  • For a textile product, a Chinese version of the label sewed on the product should be added, with the washing instructions; as well as a Chinese version of the selling label with indicating the size and price.

How to Make Exporting to China Easy

Making sure that your product can be exported to China can be complex for companies which are not familiar with the process. Before even knowing if it will meet demand, you will need to invest not only money but also time and energy.

As such, having a local partner helping you navigating in the set of regulations and requirements is often the best solution. As companies' best partner for handling the export process, ASI Solutions provides you the support and expertise you need. Apart from logistics, we help ensure compliance and you manage the testing and labelling of your product. We also provide you with key insights and advices on the challenges you might face.

From origin to your final consumer's doorstep, we handle it all (including local warehousing and delivery). In the era of e-commerce, while the latter is booming in China, it is essential to be responsive, and efficient when internationalizing your operations.

Our aim is to facilitate your expansion for you to take full advantage of the opportunities Chinese market represents.

Discover our full range of solutions!

Looking Back at Chinese Market Trends Which Shaped 2018

As 2018 has reached its end, and the year of the pig has officially begun, it is time now to have a look back on what trends have shaped Chinese market over the past year, and thus what its future is. China’s market is evolving fast, with the government actively taking part in driving it as to meet the objectives of the 13th Five-Year-Plan. At the same time, it is important for foreign brands to understand what makes the Middle Kingdom so particular, compared to Western societies.

ASI Solutions has been helping brands exporting to and importing from China for more than 10 years, thus developing a strong knowledge in the field. We make the internationalization of the firms easier, from origin to destination.

Where can foreign brands can find opportunities of development in China? And why is so? These are the questions ASI Solutions will answer in the following article.

Local Consumption

The main driver of China’s economic growth is its domestic consumption. According to EMIS Report, it contributed to 78.5% of the latter.

Why is so?

The government has decided to boost domestic consumption, encouraging retail trade development and, as we will explore in more depth later on, e-commerce in particular. This has been supported by measures such as standardization of the sector, ensuring healthy market operation and protect consumer rights. As China is switching from a manufacturing-based economy to a consumption-driven one, foreign companies are encouraged to take advantage of this new orientation.

Which consumers are the drivers of local consumption?

While big cities such as Shanghai or Beijing have been driving economic development for years, tier-two cities as well as rural areas are the new drivers of growth. The main element fostering this tendency is the development of e-commerce. Thanks to the latter, regions that were isolated now have access to a large panel of goods.

E-Commerce

For Chinese consumers, e-commerce is the easiest way access goods (wherever and whenever one wants). As such it fosters higher consumer spendings. It is indeed one of the main elements behind China’s retail sector’s growth.

China is implementing the « New Retail » model or as Jack Ma, Alibaba’s founder, puts it:

« E-commerce is rapidly evolving into New Retail. The boundary between offline and online commerce disappears as we focus on fulfilling the personalized needs of each customers. »

To sum it up, e-commerce is becoming more and more consumer-centric where personalization plays a key part.

O2O is gaining weight and is now strongly supported by chain retailers. It combines and offline strategies: online for the marketing and purchasing, offline for the distribution channels such as pick-ups, after-sales services and traditional purchasing. It goes beyond with integrating mobiles into the equation and one can now use the term m-commerce to designate mobile commerce

F&B Sector

Since 2011 China represents world’s greatest food and beverage market. The consumption itself changed as Chinese consumers are now demanding high quality products. Food safety has become one of government’s top priorities and population’s greatest concerns. Even though consumption of foreign food products is not outweighing the one of locals, it is believed that it will be world’s greatest consumer of imported products. The reason is that foreign products are believed to be more qualitative.

China is still a great importer (5th) and consumer (2nd) of Wine. Even though the market is more and more competitive, the demand is there, and indeed increasing.

Interested in exporting your product to China? At ASI Solutions, we offer you tailor-made offers, aimed at answering your needs. We are able to take care of the import process from origin to destination, we are a facilitator and your local partner at the same time.

Discover our full range of solutions!

 

 

This article is based on EMIS Insights - China Consumer Goods and Retail Sector Report 2018