Online and Offline Distribution
We provide end–to–end services to run Online and Offline Distribution
We have a strong Distributor DNA. We work with a Buy Out model, buying the stock from our clients and selling to the final consumers in China. We are focused on concrete results as our reward is directly linked to brand sales performances.
We leverage a network distribution in China
- all B2C operations are handle by our team;
- B2B2C operations can be operated internally or by existing brand distributors based on their capabilities and willingness to implement brand strategy;
- national clients are operated by our team. regional clients are covered by regional sub distributors.
Our approach has sevaral benefits
- Investments at the beginning are very limited and allow a full assessment of the brand potential. This phase can last from 6 to 18 months;
- Investments are scalable. In case of positive results investments can be increased quickly;
- The brand awareness we generate on CBEC helps trade acceptance once the product is registered. Listing a new brand into traditional channels is expensive if not impossible. If the brand is proven successful in CBEC channels, the distribution process is much easier;
- The brand has time to learn basic China consumers and trade dynamic in a controlled channel, becoming ready to handle the full China complexity when products are registered (90% of China business is with registered products).
Our distribution model
We serve directly all the online platforms, the national offline channels and B2C. These clients represent about 60% of brand turnover in China. We use regional distributors to cover regional chains and tier 3 and 4 cities. We keep very strong internal control of key success factors like price strategy implementation, differentiation of promotional strategy by channel, intellectual property management, parallel import control etc.
Our methodology is a 3 step approach
- Initial assessment & analysis of the market: in-depth analysis of the brand's current distribution to identify main non-authorized retailers and fake goods. Analysis of pricing level, brand positioning and image.
- Partnership and Collaboration: we offer the possibility for the top-performing non-authorized retailers to become authorized brand retailers. We close down fake good sites and non collaborative retailers. We monitor wholesale flows to identify sources of parallel import. We start growing the brand's flagship stores' sales and align prices.
- Close parallel distribution: we move traffic to the brand's flagship stores and we minimize the number of authorized stores by selecting the top performing retailers (in performances and brand identity alignment). We stop parallel import.