Introduction

• General trade is a form of trade that allows foreign brands to sell their products in China through regular channels such as distributors, retailers and e-commerce platforms.
• General trade is different from cross-border e-commerce, which allows foreign brands to sell their products directly to Chinese consumers through online platforms without going through customs clearance or paying import duties.
• General trade has its own advantages and challenges for foreign brands who want to enter the Chinese market.

Main Body

• General trade offers foreign brands the opportunity to access a large and diverse consumer base in China, which has a population of 1.4 billion and a GDP of $15.4 trillion in 2021¹.
• General trade also enables foreign brands to establish a stronger brand presence and reputation in China, as they can leverage offline channels, local partners and word-of-mouth marketing to reach more potential customers.
• However, general trade also poses some challenges for foreign brands, such as:
  • The need to comply with complex and changing regulations, such as product standards, labeling requirements, import tariffs and quality inspections.
  • The need to compete with domestic brands, which have improved their product quality, innovation and localization in recent years, and have gained more trust and loyalty from Chinese consumers¹.
  • The need to adapt to the preferences and needs of different consumer segments in China, which vary by region, income level, age group and lifestyle.
  • The need to cope with the impact of trade tensions between China and other countries, which may affect the supply chain, cost structure and consumer sentiment of foreign brands.

Conclusion

• General trade is a viable option for foreign brands who want to tap into the huge and growing Chinese market, but it requires careful planning, execution and adaptation.
• Foreign brands should conduct thorough market research, select suitable distribution channels, partner with local players, customize their products and marketing strategies, and monitor the regulatory and competitive environment in China.
• Foreign brands should also leverage the opportunities of cross-border e-commerce, which can complement general trade by offering more convenience, variety and value for Chinese consumers.