SMART ENTRY TO SUSTAINABLE SCALE
Most Australian and New Zealand packaged goods companies have failed in China, falling into the allure of the ‘money mirage’: lacking the patience to grow scale and equity, entering China with extensive up-front distribution agreements or opening an online store with one of the large local online platforms. In our experience, these are expensive to build and even more so to maintain against limited revenue from an unknown brand in China that sits on a platform with every other leading global brand. Even more heroically, companies often invest hundreds of thousands of dollars in developing a China team, opening a local office, developing new export processes and building additional production capacity assuming the scale and upward mobility of the Chinese consumer will mean inevitable success.
We recommend a measured approach for your China strategy, selling product as you build scale to ensure long-term success. Chinaroad can significantly de-risk your China strategy by implementing a low cost and agile ‘test and learn’ approach - leveraging our sales, marketing and logistics network across Australia and China. This will enable you to develop a clear understanding of the opportunity, build your brand’s resonance with the Chinese consumer, and allow you to adapt your product offering before you invest further.