How New York Brands Can Leverage China’s Consumer Market
The return on investment for a New York-based consumer brand thinking about entering the China market could be a huge boost to the bottom-line and establishing future global sustainability.
Why? Well, New York-based consumer brands have a specific appeal to current and evolving Chinese consumers. They are attracted to the urban vibe that New York brands are known for.
Brands that are not yet accessible to the Chinese consumer market have a few options to expand their global footprint.
These options include opening a physical store and building out operations, establishing an e-commerce presence, and building relationships with other companies for co-branding and licensing opportunities.
The upside to this investment could be massive. Something any new or established brand should take a serious look at.
Option 1: Set up A Physical Presence In China
The most complete solution would be to build a physical presence in China, by setting up a corporation and leveraging the resources China has to offer.
By building a corporation and establishing a physical presence, each company has the opportunity to manage their brand profile (the authentic narrative) and operations more effectively. Resulting in a stronger relationship with the Chinese consumer and any partners.
China does have some added benefits to opening a corporation, such as 3 years tax-free for new businesses.
Option 2: E-Commerce
The e-commerce platform in China is a well developed and highly evolved digital infrastructure which their customers confidently engage with frequently.
This is a pragmatic approach to consumer goods brands that didn’t know the opportunity to produce and distribute their products to Chinese consumers was viable and want to start small.
Utilizing local production capabilities and online platforms targeted at Chinese and emerging Asian consumers brands can scale their operations and drive revenue back to the United States.
Option 3: Co-Branding
The United States and European brands are still dominating globally, even in China and other emerging markets. However, many Chinese consumer brands will be growing into global brands in the coming years.
Developing relationships with these influential brands will solidify your reputation in the marketplace. Global and Chinese companies are more likely to engage with a foreign brand than a local Chinese brand.
Think of the brand Supreme (which is an NYC based company), and the collaborations they have done with some major companies targeting the premium and luxury markets globally through co-branding.
Option 4: Licensing
The hands-off approach to co-branding is licensing. As mentioned earlier, the e-commerce infrastructure in China is highly developed.
Partnering with a major e-commerce store or supplier to produce licensed products to sell over their distribution platforms can be a lucrative option as well.
This allows companies to use your logo and branding to produce goods for their consumers that you are paid a royalty for.
Brand presence in China can provide the edge required to sustain relevancy and positioning in the global economy. Companies new to the idea of entering the market have a few options to consider.