Where Should You Begin Selling Wine, Beer, and Liquor in China?

Where Should You Begin Selling Wine, Beer, and Liquor in China? by Shanghai Paper

Introduction to the Chinese Market

China’s mainland is a vast and diversified market. It’s critical to figure out which local markets to concentrate your efforts on. This allows businesses to determine where and to whom they should sell in China, as well as the best type of distributor or importer to engage with based on their target markets and end-users.

Responding to the Crucial Questions

Because China is such a big market, we recommend beginning by selling in one or two local markets. This is a significant question that necessitates the resolution of several minor issues first. Where can people get my goods at a reasonable price? Who is the ideal customer for me? To reach my objectives, what kind of distributor or importer should I partner with? A target market analysis, which should be part of every company’s due diligence before they start looking for distributors and selling in the market, can answer all of these concerns and more.

Where Can Customers Get My Product (the Best Local Market in China) at a Reasonable Price?

Income levels in China vary widely from place to place. For example, average incomes in Beijing are over twice those in Gansu province. In order to determine the best local market, companies need to know how affordable their products are locally, the number of potential buyers, and the market size as a percentage of all local consumers. Knowing how affordable your product is to the average income in each local market will make it clear which local markets you should focus on selling in first and which will be better for later expansion.

Who is My Ideal Customer?

Every business should have a clear understanding of who their ideal clients are. What are their names? Where do they get their wine, beer, or booze? What factors influence their purchase decisions? Companies should have a comprehensive picture of their potential customers, including their geography, age range, gender distribution, and shopping habits/qualities. It’s also important to figure out their socioeconomic status, purchasing power, and purchasing source. In China, the younger generation is emerging as the market’s driving force and one with the most promise.

Should I work with a distributor or importer?

It’s critical to engage with the correct distributor or importer. It’s also not simple, especially in a complicated rising market like China. The type of distributors and importers you should look into will be determined by which local markets you want to sell in first, as well as who your target consumer is. You want to collaborate with distributors and importers who are familiar with and well-established in those markets, have expertise selling your product type, and sell your wine, beer, or liquor in the places where your ideal clients are most likely to buy it.

Once you’ve discovered a prospective distributor or importer, you’ll need to conduct thorough due diligence to verify their track record, competence, and reliability. You want to make sure they’re the right partner for you because they’ll be your sales partner in China for years to come. Because of the vast number of distributors and the difficulty of validating their legitimacy without the help of a local expert, this is more critical in China than in most countries.

Final Thoughts on China’s Best Local Market

The wealth level and population density in big cities like Beijing are extremely high. Markets also have well-functioning distribution networks. As a result, such marketplaces are frequently excellent for first import and sales in China. Smaller cities and interior provinces, such as Dalian in northeastern China and Yunnan in the southwest, have lower population density, incomes, and less developed logistics and distribution networks, making them suited for secondary or tertiary expansion.