Australian food and beverage to China(4)

Ascertain that you are dealing with a reputable business partner but
            at the same time take full export insurance.
            There are a number of actions that will help you succeed as a
            supplier:
            Get to know the market - Visit the market, establish a price range
            for your products, understand the sales and distribution channels,
            and know customers' preferences.
            Proper due diligence - due to an increased incidence of scams in
            China, Australian companies are urged to investigate enquiries from
            China and consult with Austrade for assistance and referrals to
            professionals specialising in China due diligence checks and
            investigations.
            Find a local partner or agent - Choose slowly and carefully, look
            for a partner with a proven record, and ensure that the partner is
            able to handle import formalities.
            Test the market - Be aware that everything is different in China
            between each of the cities and provinces.
            Find your market segment and focus on it - Identify and develop a
            niche market. Try not to cater for the entire market by diversifying
            too early.
            Adapt your product to the local market - Adapt your product to local
            tastes, and make small adjustments to the product if necessary.
            Invest wisely in market promotion - Participate in industry specific
            trade shows, and make frequent visits to China.
            With the rapid growth of Internet use and penetration in China,
            particularly in major urban centres, e-commerce is seen to offer
            considerable potential in China.
            Although still niche, online trading is gradually expanding in China
            and there are a number of e-commerce sites and developers. Many
            sites in China provide a platform for business information exchange,
            however physical transactions are primarily undertaken offline due
            to China's undeveloped online payment system, and difficulties
            establishing the business credentials of some companies in China.
            Please note that for online transactions of food and beverage
            products, all Chinese quarantine and customs requirements still
            apply. Online transactions are usually most popular among companies
            with products already entered into the Chinese market (ie. available
            in China) and are dispatched from a Chinese warehouse point to the
            buyer. Two sites that are worth looking at are:
            www.Alibaba.com - a popular e-commerce site for supply and trade
            leads - specialises in the development e-marketplaces, e-solutions
            and e-distribution
            Distribution channels
            Distribution channels into China are complex and changing
            constantly. Exports into China can be handled through a number of
            intermediaries including Hong Kong traders, private trading houses
            in China, state-owned trading houses, or a joint venture
            arrangement.
            Only licensed importers can handle import procedures and have the
            right to import products. Most food distributors or traders do not
            hold import licenses and very few licensed importers act as
            distributors.
            Different product categories require different distribution
            channels. Currently, most food and beverage products are handled
            through Hong Kong traders. However, private trading houses in China
            have become increasingly more important for the importing of
            seafood, fruit and meat.
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