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China – Opportunity or Danger?

Blog Post China Opportunity

royce morales 1
During 2017 we have been approached, a number of times with opportunities to support American brands to enter the China market. While there are stringent registration requirements to enter the China market, the China government, in an interest to support the expansion of eCommerce, is allowing imported products to enter through this channel of sales, and bypass the normal registration process. Patty Schmucker spoke recently with US Commercial Service Officers in three major Cities in China who reported these conditions along with a lack of clarity on when and if these laxed market entry conditions will continue.

We see a number of government and private sector resources taking advantage of this market entry opportunity, coordinating consolidated shipment and even setting up “American made” physical and digital stores. Sounds like a golden opportunity for many industries, but for beauty brands it’s a quagmire.

Beauty brands build value in their companies through two main assets. First is a recognizable brand. For example you know a bottle of Paul Mitchell from across the room. The second is protectable intellectual property like trademarks and trade dress. The soft boggy area of land known as China gives way underfoot for beauty brands because their government does nothing to protect either of these assets for brands. Large American brands have withdrawn from this massive market because they have not been able to protect themselves (with large budgets and resources.)

AMB is on the forefront working with the Center for International Trade, US Commercial Services and the Milken Institute’s New to Export Initiatives to help navigate for beauty brands. Don’t go it alone. After five years of working through these resources we are helping brands to connect with domestic and international customers to grow in a sustainable, intelligent way. Contact us for support to navigate your international growth.

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