Globalintimatewear.com(GIW) has interviewed Chen Xian, the general manager of Guangdong Foshan Xieqi Apparel International Co., Ltd to share his idea and experience on the topic of How to Open up the Domestic Market for Exporting Companies in China.
GIW: How to build a brand and expand sales channels in China? As traditional sales channels are dominated by top or second class lingerie brands, is there any good or new approach for Small and Medium exporting companies to break into the domestic market?
A: 1) As for brand building, I suggest companies should first of all come up with a clear idea on the brand positioning. They should bring out a consistent style, color, price and so on.
2) Advertise your brand so that it is known by your targeted customers. Nowadays, there are a lot of good lingerie products on the market, if you don’t advertise your brand, you will lose the market.
3) Streamline you supply chain and service chain.
To sum up, making a strong lingerie brand requires companies to upgrade the quality of product and brand image, stick to a consistent style and put effort on managing a good sales team, training team and after service team.
As the saying goes, who master the sales channel, who will win the market. However, I would say, who master the new sales channel, who will win the market.
Before building sales channels, companies should first analyze your target customers and customer groups. So far, I found that traditional channels are dominated by first or second class lingerie brands. For example, large department stores in the first tier cities are the playground for top lingerie brands in China. But, second class department stores in suburb or second tier cities have not yet dominated by either top or second class lingerie brands in China. This is their big opportunities to break into the domestic market.
Our company already has a detailed plan to guide and support our agents to sell products in the less famous department stores. This sales channel is considered to be our blue ocean. It is not as highly competitive as the top department stores in the central of first tier cities. And the price in the second class department stores will be definitely lower than that in the top department stores. But we assure that consumers will take home with high quality and stylish lingerie.
However, we will develop diversified marketing channels to sell and established brand image in the domestic market.
The keys to build a healthy sales channel are to let your downstream customers earn money easily and lower their risk of running business with you. If you customers cannot sell your products out and backlog a lot of inventory, your sales channel is unhealthy, and vice verse.
So our goal is to upgrade the overall quality of the product and service so that consumers are attracted by our lingerie and buy it as a result. It has been proven success in our foreign trade business, and will be apply to the domestic business as well.
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