Should I pursue this idea/option?

Discussion in 'Starting a Business' started by Til55, Jul 10, 2016.

  1. Til55

    Til55
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    Hello,

    we've list of 500 buyers (end customers) in China who order products made in Germany from us.
    Now I've talked to a brand in Germany which is hardly established in China but is selling to some distributors already and growing. They'd be happy to work with us but we don't get any exclusive distribution rights or investments for brand building or similar.
    Selling to our network works more or less ok - given the fact that Chinese mistrust small and unknown brand but trust us/our judgement and recommendations.

    To grow the whole thing, I thought about investing on brand building and marketing myself BUT:
    There is already on distributor on tmall.com (highly trusted marketplace in China) created a very nice store and focusing on this brand.
    If I'd start with marketing and brand building now, I'd probably help that distributor to increase sales, maybe even faster/better than our own sales since he is on TMall (where we couldn't get within the first year).

    Does it still make sense to pursue the idea of brand building or should I just keep on selling products occasionally to our existing (slowly growing) customers?

    Thanks,
    Til
     
  2. Lily Brown

    Lily Brown
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    Not sure I really got what you mean. But are you thinking of marketing and brand building for the products that your Chinese customers order? It does not really make sense. If not, you are planning to marketing for your own startup, so why does it relate to the sales of Tmall? You can skip this if it's my fault not understand fully your case, my bad. haha
     
  3. Til55

    Til55
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    Sorry, my bad.

    Manaufacturer A doesn't want to go after a China strategy now, but they see growth in China via private/smaller ditributors.
    I talked with A and they seem to be interested in me as a distributor but would "test" me first for 1 - 2 years and if they see promising development, they might invest into a China strategy (with me - maybe).
    So I researched the Chinese retail market. A's brand is being sold here and there by small vendors and by one who did a really good job (Retailer B) (nice pictures, description, etc. - seems like the official Chinese/HongKong retailer - but it's not - B is just one amongst others.

    The question is basically: Should I try to overtake the established B (which might be really difficult) or not.
     
  4. Lily Brown

    Lily Brown
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    Oh woa, that means A already have B as a distributor in China and they are doing good job, now A still wants to collaborate with you as u have list of Chinese customers? Correct me if I am wrong :)
    Then you should analyze B and assess your own resources, what they have and what you have to make you unique. What are their strengths that you can hardly defeat or it takes a lot of time and money for you to beat them. Once you find out, try to focus on other factors which can be your own strengths, like the niche market they haven't reached, customers u already have, services, add ons... And even if now you cannot earn much from this, you can start small then grow big. The most importance lies in how you analyze you and B to plan the most feasible strategy. Wish you all the best :)
     
  5. Til55

    Til55
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    Ok, then I'll try to find something and see whether we can start there.
    Thank you very much. :)
     
  6. Lily Brown

    Lily Brown
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    • Promotional Links are not allowed in normal forum posts. This post has been edited to remove a promotional link.
    And if your competitor have website, you can check it out here web for site rank to see how they are doing and what you can do. Best luck for you :)
     
    #6 Lily Brown, Jul 27, 2016
    Last edited by a moderator: Aug 24, 2016
  7. OlgaCausey

    OlgaCausey
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    You can have a try. As you said overtaking B is really hard, but if you have something special that you can beat B, that's great. Or if nothing special, if you still do it well, you can also take some marketing share from B.
     

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