Intereras

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Is the 1.425 Billion Population China Domestic Market Approachable for Foreign SMEs?

Selling via Douyin, Taobao, Xiaohongshu looks easy from the outside. What really has to be solved before the first sale.

By Daniel ChanJun 26, 2024Market entryBusiness matching

At the Hangzhou International Textile and Garment Supply Chain Expo, Intereras organized an executive summit and business matching session with over 40 brand owners. The summit was co-hosted with the China Chamber of Commerce for Import and Export of Textiles (CCCT) and Vietnam Textile and Garment Association (VITAS). Over 200 Chinese textile and garment companies attended, many considering production relocations to Vietnam for risk management.

Major e-commerce platforms participated — Taobao live stream, Douyin, and Xiaohongshu — alongside 50+ MCN companies and livestreamers with millions of followers. However, foreign brands must address critical requirements before leveraging these channels.

Four practical dimensions matter more than platform choice: cash flow (payment processing mechanisms for foreign brands in China), storage (inventory management), logistics (distribution to sales channels), and legal (trademark, brand name, and patent protection). The post advises smaller brands to partner with third-party traders to optimize costs, while emphasizing the importance of registering intellectual property before engaging partners.

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