Agenda
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Overview of China
Current FMCG Brand in China
SWOT analyze Malaysia Product in China
Steps to start business in china
Import Process
Logistic, warehouse
Sales Channel – Distributor, retailer
Pricing methodologies
Delivery lead time
Business Peak Season In China
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Overview Of China
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FMCG Brand in China
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Other Product From Well know brand
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Malaysia Brand In China
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SWOT for Malaysia product
Strength
Weakness
Better quality compare to china
product
Cheaper material cost
High Price due to logistic, storage,
custom each.
Delivery lead time >80 days
Capital limitation on sales & marketing
Packaging not attractive
Opportunities
Treat
Not much quality & High end
product of F&B in China
Non disclose Trade Bearer –
import procedure – less
competitor
Huge market – Beijing >15
million
Quality consistency
Rapid sales increasing –
production capacity limitation
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How to do business in china
 Stock available in china
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Import Permission
Store
Logistic Agent
Marketing / Promotion
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Exhibition
Promotion & Testing in retailer
 Distribution Channel
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Distributor – sell to retailer, restaurant each
Retailer – sell to consumer
Online Selling – owner direct sell to consumer
 Sales Team
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Listing in hypermarket, tesco, carrefour, Hua lian, Lotte Mark
Hotel, restaurant, small store
Corporate / company
 Finance team – handle of collection
 Logistic Team – product delivery
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Step 1 – stock available in china
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Import Permission / License
Stock Placement in China
Testing Sample Placement in China
Logistic / Delivery Services
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FORMAL IMPORT PROCEDURE & PROCESS
Apply to AQSIQ
Ingredients Prove Lab Test
Get Concern
Ministry Of
Health
MOA
Ministry Of
Commerce
Gong Shang
Dept
Custom
Labeling
Control
Dept
Filling To Above Agency If No objection
Import Permission Key Into Custom and CIQ Center computer System
Product Imported Into China after pay tax and run CIQ checking
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Concern detail
 Ministry Of Health - approve on ingredients, especially additive,
preservative and colouring
 Ministry Of Agriculture – approve on ingredients which involve plant
base, animal base or seafood base. Alert on the bilateral control of these
items
 Ministry Of Commerce – check on the market competitive and
commercial impact to china local market and local industries on the
imported product. May reject if the product in control list (where china
citizen must hold >50% share) or its will harm the local industries.
 Gong Shang Department – Brand name of the product, patent /
copyright. Any conflict with product exist in market or not.
 Custom – Tax rate, HS Code
 Labeling Control department (AQSIQ)– check on the label
information on packaging, according to China Label Act
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Logistic & Warehouse
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Sales Channel
 Marketing Material (Chinese)
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Brochure – Product Intro, benefit, ingredient. Good
photo
Packaging – attractive & well represent of product
Price list
Delivery method / lead time
China contact point / after sales services
Sales Kits – product comparison each
 Sales personal
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Product Knowledge
Product Sales technique
 Exhibition
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Booth decoration
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Pricing Methodologies
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Standard factor consumer price = 7 or 8
Standard distributor margin 15%
Standard retailer margin 30%
Retail margin rebate 2~3 %
Retailer logistic handle 7~8 %
Standard factor for china port delivery price
= 3~3.5 x
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Delivery Lead time
Production
Order 7
21
0
Buy
Material
Book
Shipment
35
Health
Cert &
C.O.O
Send to My
Port
Assumption
1.
Working days
2.
High Puntual & execution
3.
No hang in between
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My Port
Operation
40
China
Port
Operation
54
57
Arrive
China
Port
Custom
Clearance
67
China Lab
Test
72
Deliver
74
81
Pull to
Warehouse
85
Retailer on
sales
Peak Season In China
Product Delivery Timing
(to retailer) 45 days
before festival
Festival Timing
1st Dec
Jan / Feb Chinese New Year
1st April
Fool
1st May Holiday Season
1st Aug / Chinese Ghost
Sept Tang Long Festival
1st Oct Independent Day Season
1st Nov
Dec Christmas / Year End Sales
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Thank you
 FAMA contact person En Alwi
 alwi@fama.gov.my
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