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Tuesday, May 24, 2022Market

Understanding Chinese distribution

Bien comprendre la distribution chinoise

China is an important market for French brands. And to get the most out of it, it’s essential to understand how it works. That’s why Business France’s Team France Export organized a webinar on April 14, 2022 (broadcast as part of the French Beauty Booster China program).

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In 2020, purchases on Chinese websites brought in 1.249 billion euros.
Internet shopping is split between cross-border and domestic.
Today, a new sales mode is being implemented: social selling. It is a channel that mixes online sales and social networks (like WeChat or Little Red Book). To trade on these platforms, you have to pay an opening fee (around 5800 euros) and a commission on the turnover (5%).

Physical distribution

“Despite the power of the Internet, the physical channel still accounted for the bulk of sales in the sector in 2020 (55.7% in value),” explains Business France. “It is interesting for a brand to be present in a department store, in a specialized chain or in a pharmacy. It’s a guarantee of quality and authenticity for the Chinese, who test products before making a purchase. In addition, hard distribution is a good way to gauge the potential of its offer.”

Specialty stores
They may have suffered from the health crisis, but they are showing positive growth.
These establishments often have a cutting-edge foreign and local offering. Major chains include The Colorist, WOW Colour, Harmay and Sephora.

Travel retail
Chinese tourists are among the highest spenders of travelers abroad.
With the …

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