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Sell to China

Outsourced Sales, Marketing & Customer Service in China

Option 1: Sales Facilitation & ‘Firewall’ Service

You already have Chinese customers or distributors, but need some help with the selling process in order to protect your IP, receive payment in RMB, and offer them the receipts they need.

It’s not easy for companies who are new to China to be in a position where it’s easy to trade in China, accepting payment in RMB and being able to offer official receipts (fapiao). This often involves opening your own registered China company, which takes huge investment, a long time, and intense Chinese bureaucracy (especially in the case of manufacturers) to set up.

China’s market is full of local buyers who are crying out for premium Western goods, but how do you sell to them?

Problem 1: Mainland China-based buyers prefer to pay in local currency (RMB) as they don’t have easy access to foreign currency. Buyers often require an official receipt inclusive of tax. If the seller does not have a fully-registered, physical office in China, the seller cannot provide formal receipts, pay taxes or accept RMB from sellers.

Problem 2: International firms who instruct their Chinese suppliers to sell to a China-based buyer may face problems with collusion among the Chinese entities and eventually find themselves cut out of the supply chain when the China based supplier and buyer become acquainted.

Setting up your own company is certainly a solution, but not if you want sales now.

Trade facilitation, currency conversion & firewall protection

PassageMaker have been selling in China since 1998! Not only are we a fully licensed Chinese manufacturing company with first-rate infrastructure (China-savvy Western management, SOP’s, Business templates, Multi-currency bank accounts, Domestic sales approvals & import-export licensing), but we also offer our local Chinese and Hong Kong companies to serve as your ‘firewall’ when you are selling to China.

We will:

  • Facilitate purchase of your products from appointed suppliers for resale in China to your customers, or directly to your customers.
  • Take payments in RMB and issue official ‘fapiao’ (receipts) to local suppliers and customers through our licensed companies.
  • Return the funds to you either in China, Hong Kong, or abroad, or keep them to pay your local suppliers for further manufacturing resources (should this be required).

Here’s How We Do It

Essentially we start selling to China for you! You just need to sit back and collect the profits!

An average project will generally follow these 4 steps, although we will customize each for specific client needs:

  1. Product will be sold to Client’s designated China customers at the designated sale price. The mode of delivery can range from drop shipping a few units to organizing entire truck loads.
  2. PassageMaker will collect sales revenue from Buyer and issue VAT receipt to Buyer.
  3. PassageMaker will return sales revenue minus agreed PassageMaker service fee to Client. If Client requests, revenue resulting from sale of product may remain in PassageMaker’s account for use to purchase additional product from Client’s suppliers in China.
  4. Client is invoiced costs of warehousing, logistics, taxes. These amounts are pre-agreed and no markup is applied.

Scope of Services

In general this service will include the following points:

  • Payment Facilitation
  • Document Development & Implementation (price lists, PO’s, invoices, shipping documents) between Suppliers, PassageMaker and Client’s China customers.
  • Logistics
  • Legal (coordinating contracts among the various parties and registering/monitoring IP )
  • Government Relations
  • Product Registration & Compliance
  • Unless stated in a formal Quotation from PassageMaker, PassageMaker does not provide supply chain financing or bear exposure to potential client default on payments to sub suppliers.
  • Responsibility for Product Liability and Product Recall does not extend to PassageMaker.
  • PassageMaker’s Assembly/Inspection Center may be utilized if an independent party is needed to inspect/sort/assemble or package client’s goods. This service is subject to a per unit rate and falls under a separate service agreement covering the inspection and assembly instructions.

Methodology

Product will be sold to Client’s designated China customers at the designated sale price. The mode of delivery can range from drop shipping a few units to organizing entire truck loads. PassageMaker will collect sales revenue from Buyer and issue VAT receipt to Buyer. PassageMaker will return sales revenue minus agreed PassageMaker service fee to Client. If Client requests, revenue resulting from sale of product may remain in PassageMaker’s account for use to purchase additional product from Client’s suppliers in China. Client is invoiced costs of warehousing, logistics, taxes. These amounts are pre-agreed and no markup applied.

Option 2: Fully Outsourced Sales, Marketing, and Customer Service In Asia

You have a product or products and want to start selling to China, but don’t have the knowledge, infrastructure, company, staff, suppliers, or customers to do so.

Surely cracking this notoriously difficult, yet lucrative, market is beyond a company like yours?

We’re happy to announce that that’s just not the case any longer, and that you can rely on PassageMaker’s team of China-based Western experts to help get you started, build your sales process, and keep the orders rolling in. By working with us we’ll build a full sales, marketing, and customer service process for you where recruit, employ, train & manage a dedicated team of sales & marketing professionals responsible for developing the China market for your product/s.

How PassageMaker Set Up Your Sales, Marketing, and Customer Service operation in China (or Asia)

The average project where the entire process of selling to China is outsourced to PassageMaker typically has the following 2 phases:

Phase One: A Market Feasibility Study (MFS)

Conducted by a 3rd party to clarify the following items:

  • market potential
  • import duties
  • product registration process
  • local language labeling requirements
  • pricing strategies, tax issues and terms of trade
  • intellectual property plan to protect trademarks and design concepts
  • distribution strategy
  • identify key trade associations & trade shows

As part of the Market Feasibility Study (MFS), 3rd party specialists are approved by client and coordinated by PassageMaker in order to:

  • conduct focus groups
  • perform competitor analysis
  • research pricing points at a regional or national level among wholesalers, distributors and retailers
  • complete laboratory testing to confirm product is in compliance with local standards.

Phase Two: Engaging the market

  • create product name and brand concept in local language
  • register intellectual property (trademarks and design concepts)
  • product registration (safety compliance)
  • develop local language brochures, websites and sales materials
  • recruit technical & non-technical sales staff
  • training and coordination of sales staff
  • sub-distributor development
  • accounts receivable management
  • media advertising
  • trade show attendance
  • coordination of warehousing and logistics

If needed, 3rd party specialists are orchestrated by PassageMaker in order to:

  • develop local language logos and brand images
  • complete technical translations
  • perform due diligence on potential buyers
  • collect overdue accounts

PassageMaker Will Recruit, Train, and Manage The Following Staff

Account Manager (AM)

  • Responsible for overall project performance.
  • Client’s primary point of contact in China. Communications between the client and AM take place in English, Spanish, Chinese, French, Portuguese or other languages upon request.
  • Manages the full-time Support Staff (SS) with the help of the Support Staff Supervisor (SSS).
  • Coordinates In-house Specialists (IHS) and Outside Specialists (OS) on an as-needed basis.
  • Compensation for AM’s support is built into the commission.

Support Staff (SS)

  • The SS’s are local staff, recruited for a specific skill set, assigned to the project full time. They advance the client’s agenda on a day-to-day basis among the various entities in the client’s supply chain.
  • Direct expenses (SS’s wages, mandatory benefits & severance fund) are approved in advance and invoiced to client at cost.

Support Staff Supervisor (3S)

  • Assists the AM in recruiting, training and managing the day-to-day activities of the SS’s.
  • Responsible for reviewing the KPI (key performance indicators) of each SS on a monthly basis.
  • Compensation for 3S’s support is built into the commission.

In-House Specialists (IHS)

  • Members of PassageMaker’s advisory board, logistics team, human resources team, quality systems team, engineering group & accounting team, can be tapped by the AM and SSS to provide advice and expertise.
  • Compensation for IHS’s support is built into the commission.

Outside Specialists (OS)

  • Possess technical skills not found in the SS team.
  • Usually engaged on a part-time or project basis. For example: contracting an artist to create a new logo for the client or hiring a local lawyer to register a client’s IP in China.
  • OS’s compensation is approved in advance and invoiced to client at cost.

Notes on Product Testing and Registration in China

Product Testing and Registration in China (including the application for CCC mark) can be a complex and lengthy process. In most cases a local registration agent is hired to help prepare the documentation and submit the application to the appropriate government agencies. If your product is not already registered in China, as your partner, PassageMaker can offer suggestion on which agents to use as well as guide you through this process. PassageMaker will advise on how to reduce both the costs involved and the lead times. The registration agent’s costs are invoiced in a transparent fashion direct to client with no mark ups added by PassageMaker.

In particular, our team is well versed in issues related to the China Compulsory Certificate mark (also known as “CCC Mark” or “3C”) which is a compulsory safety mark for many products imported, sold or used in the China market. The CCC mark is administered by the CNCA (Certification and Accreditation Administration) and includes a review of both the product and production facilities. PassageMaker’s assembly center in Buji and the products built there have successfully achieved the CCC mark.

Notes on Patent Protection and Trademarks

PassageMaker is committed to protecting Intellectual Property in China. As your partner in China, if you have not already registered your IP, PassageMaker will guide you through the process of finding and engaging a local patent attorney to protect brand imagery, patents, technology, and other intellectual property you may be concerned about. The patent agent’s costs are invoiced in a transparent fashion direct to client with no mark ups added by PassageMaker.

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