Chinese factory works with dealer - will it cooperate with new one?
The short answer is yes, it will. But there are nuances that need to be considered.
Chinese business is different than people think. Even if the plant already has a partner in Russia or another country, this does not mean that the path is closed. Let's see below. Why are factories willing to hire new dealers?. In what cases is it real?and How to act to get into the project.
“Exclusive” in Chinese: what does it mean?
In China, the word “exclusive” is often used, but rarely means an official contract. In most cases, these are:
- merely an oral agreement;
- understanding between the two parties by default;
- a contract not legally fixed or limited in time/territory.
A factory may say it only works with one partner, but it is safe to send the goods to another if it is profitable. We have faced a situation dozens of times when it was possible to go to a “closed” supplier, just building negotiations competently.
Why the Chinese factory will consider a new dealer
1. Chinese are focused on benefits, not past merit
If you give more interesting conditions, bring customers, pay on time, do not create problems - you have every chance. Friendship, who was first, even knowledge of the language are not the main factors.
Example of practice:
One client proposed a scheme in which he took equipment in small batches without prepayment, but at the expense of a future contract. The plant already had a Russian partner, but they agreed, because The offer was more convenient and profitable.
2. Chinese people don’t like conflict, but they can work with multiple dealers.
If you do not interfere with the current partner, but offer work in another region or segment, the plant will gladly meet.
How to enter a project where you already have a partner
1. Find out how the current work is done
- In which regions does the dealer work?
- How much does it take?
- How do you serve customers?
- Does it have an exclusive on the whole territory, or just a part?
2. Offer a new segment or format to the plant
- Another region (for example, Siberia instead of Moscow)
- Other types of customers (e.g. B2B instead of retail)
- New format of cooperation (installment, service, brand promotion)
3. Prepare a normal TK and a promotion plan
Clear technical requirements and product promotion plan in Russia This will help to interest the manufacturer.
4. Ask about the test collaboration
Ask to start with a small batch, show off your work and prove that you are a reliable partner. The Chinese value systematic approach, discipline and willingness to be connected.
What is important when building relationships with the factory
- Personal visit: The Chinese appreciate it when you come in person, not just in correspondence.
- Transparent scheme of work: How you receive orders, how you make payments, how the service is organized.
- Reputation and consistency: If you’ve shown yourself to be a systemic person, even if you don’t start working together right away, you will be remembered.
When the plant has problems with the current partner, they will remember you.
What not to do
Don’t try to kill your partner directly.
No need to offer dumping, promise to “bypass” the current dealer or arrange a scandal. This causes resentment among the Chinese. Better offer. Alternative scheme without conflict of interest - and you get a chance.
What to do to get the project:
- Understand the current scheme of the plant
- Offer new directions: region, segment, format
- Show your work plan and principles
- Focus on test collaboration
- Be connected, come in person, show yourself as a reliable and systematic partner.
Even if a Chinese factory says it only works with one dealer, that's no reason to turn around. The Chinese work with those who are more profitable, reliable and convenient. It's important. Go carefully, according to Chinese business etiquette. Then the project may be in your hands.
