Chinese Exporters Actively Seek Overseas Agents

"At the Canton Fair, we have just talked about a general agent in Belarus, who is responsible for the promotion and sale of the company's products in the Belarus market."

Liu Ping, director of R & D design of Jiangsu AI Tao Fine Arts Co., Ltd., excitedly told reporters that their company exported manual embroidery products, and has already set up agents in overseas markets such as the United States, Britain and Russia.

According to the analysis of the industry, some of our export enterprises are changing the passive situation of "only immersing themselves in production and not hearing the market", and begin to actively seek agents abroad, forming their own brand and sales network.

Export channels have gradually changed, waiting for the original, and now they are actively looking for overseas distributors. They only find a product agent, and now, after investigation, they gradually develop this agent into the general agent of the company's products.

For a long time, China's export enterprises are more like a "migrant worker" role.

Through trading companies in the mainland, Hongkong and Taiwan, or overseas importers, or large retailers who have come directly to China in recent years, they can get orders, and then be responsible for producing them.

However, the survival of both the design and the market is more and more passive.

The general manager of Tangshan ceramic Limited by Share Ltd Bone China company, general manager of Mi Fu Sheng, said that the disorderly competition among domestic export enterprises is very serious. For instance, many stalls at the Guangzhou Trade Fair are competing prices, based on the prices of large enterprises, and then offer lower quotations.

In addition, most factories are OEM for foreign brands, for example, most of the garments exported now are OEM.

Wang Feng, business manager of Hang no Trading Co., Ltd., told reporters: "in Chenghai toy production base, OEM is still done by large enterprises. Small businesses are not licensed or casually labeled for export.

Many export gifts have only one product number.

As a result, powerful companies are now trying to go out and build their own brands and channels overseas.

It is considered a good way to pave the way through agents.

The handicraft embroidery products of Jiangsu AI Tao Fine Arts Co., Ltd. has been sold to many overseas markets with "Ai Tao" as its brand.

Liu Ping introduced that the company's middle and low-grade products are mainly sold to the United States, and the high-end products are sold to Japan, Taiwan and Southeast Asia, and some of the top products with high value-added are sold to Russia.

A top product sells for hundreds of thousands of yuan.

In these markets, Jiangsu love Tao company is looking for local agents to promote.

For example, in the US market, because of the large sales volume, there are currently 4 sub agents in the US, and each has a general agent in the United Kingdom and Russia.

Liu Ping told reporters: "apart from just talking about a general agent in Belarus on the Canton Fair, not long ago, the company also talked about an agent in Switzerland, a marketing company under a local museum, which is responsible for selling in Switzerland, Germany, Austria, France and many other countries."

According to the reporter, Shenzhen Hukun Industrial Development Co., Ltd., which is engaged in toy car export, also seeks to expand its overseas market by looking for agents overseas.

Gu Wu, chairman of Hua Kun industry, told reporters that there are two kinds of agents in his company at present. One is the market agent of a product, and the number of sales contracts with agents is one year, and the company gives an exclusive price accordingly.

Many of these agents are import Companies in the toy industry.

The other way is to talk to the agent about the whole company's products after a certain number of years.

In the past, domestic manufacturers did not restrict the behavior and performance of overseas agents. Now, in order to prevent overseas agents from causing losses, they have done "smashing" the market, and domestic manufacturers have finely laid down the terms of cooperation, and secretly hired investigation companies to investigate the cooperation of agents.

At the same time, Jiangsu AI Tao also has its own way of cooperation with agents.

According to the reporter, the key of Jiangsu AI Tao in negotiating agents is to see agents' local resources and the recognition of "Ai Tao" brand in the locals.

At the same time, AI Tao asked agents to maintain the reputation of "Ai Tao" brand and products and not allow low price sales. For example, in the British market, the price of agents is about 5 times that of China, and some of the top products are 10 times that of China.

"Usually, companies and agents also make a five year contract."

Liu Ping said that the company and agents will set up a five year sales target, which generally requires 50% in the first year, 80% in third years, 100% in fifth years, and then steadily developing.

The company will also give agents low price support, and send technicians to help agents in the exhibition, flagship store activities.

Through agents doing overseas markets, there is also a risk of "smashing" the country's market.

To avoid this risk, domestic companies are also beginning to explore the experience of limiting risks.

Gu Wu analysis, in limiting risks, on the one hand, when signing an agency agreement with agents, there must be economic interest restrictions.

If we thought that the credit of foreign customers was very good, but when he could not complete the contract sales volume, there was no way for domestic factories.

So now the operation is, if a contract is signed with an agent to sell 130 thousand toy cars per year, then ask for 50 thousand dollars to be put in the factory because the general verbal promise is useless.

On the other hand, the quality of products and after-sales service should be signed by "who is dead".

For example, the qualified rate of products is 2%. If the product pass rate is within 2%, the problem product will be borne by the agent. If it is outside 2%, the factory will be responsible for replenishment.

Also, the quality of the product is out of order, and how to deal with it is clearly stated in the contract.

For example, there is a battery in the golf cart, which guarantees the quality problem within one year, and is not responsible for one year.

According to the analysis of the industry, many Chinese factories are afraid of offending customers, and they dare not say clearly to their clients on the treaty.

And Gu Wu has his own way.

If the company has a set of evaluation system for foreign customers, we should conduct a comprehensive inspection of its capabilities and reputation before cooperation.

After the cooperation, through the overseas paid investigation company, we can understand the sales data of the company's products, so that the company also has some initiative.