SoyuzSnab is a wholesale and manufacturing company of food additives
To find new small wholesale partners for the resale of raw materials in China
To find online new partners who will resell the goods, and not take on sale
The company already has sales in China, but partners/agents who sell the product in China take most of the gross profit
To be or not to be?
The product has a really good quality and it is demand in the Chinese market. It is important to mention the client already has a representative office in China which was unprofitable due to customs duties and commission of partners. Dо you think it is better to shut down an office like this and lose the share of the market?
Not at all. It is much better to bring business to online wholesale marketplaces, like www.1688.com
Feature of working with China - they don't really want to let other countries to their market except food providers. Why? Local agriculture does not cope with demand. Industrial companies have low competence in the dairy and confectionery industry due to their historical development. Who can be a competitor to chinese on Chinese market? Correct - providers of good quality (or sometimes not so good) food. But to make business in China you have to be a chinese or your business has to be absolutely transparent and controlled for local authorities. For this you have to have an official representative in China, Chinese bank account and staff in China. And honest translator in Russia.
Before starting work, we recorded customer sales figures for the year to compare for the same period after the advertising campaign. And of course we've defended them with a NDA agreement :)
We built CJM (Customer Journey Map) and identified the channels
1st part of the statistic: We gave contextual advertising on Baidu and analyzed the audience with the Yandex.Metric. We selected statistical data and fill client's profile. As any other Chinese ads account Baidu, when registering, requests to confirm the company has an office in China and Chinese bank account. After registration was finished, we paid the ads and set it up. Technically, advertising is configured by analogy with Yandex Direct, but like 3 years ago.
What was made?
2nd part of statistic: We have formed an email survey for existing customers so that they answer what is important and valuable to them in the product. It is interesting to mention, the openability of letters increased when the subject contained a vip client call.
We formed the USP(Unique Selling Proposition) based on the obtained data.
The Chinese are fans of WeChat.
The Chinese take information on the forums and trust it. And this is a real find!
Based on the USP we've made a content seeding on Chinese professional forums
About 20 clients of small food production were attracted from forums in the first month of content seeding and 1-2 clients monthly after. The ads budget paid off so the client decided to scale
We found three food bloggers in WeChat (as the subject is rare) and made a deal with one of them as two others gave a very high prices when found out we are not Chinese
The blogger helped to attract about 10 clients for one ads integration, but the budet didn't pay off so the client decided to abandon this channel
We launched targeted advertising based on the interests of the audience
From the WeChat target ads we attracted about 100 leads, 2 of them became a customers, but the budet didn't pay off so the client decided to abandon this channel
Registered on www.1688.com, uploaded catalog and launched targeted advertising
From www.1688.com came over 100 leads and 10 of them became a customers. This channel turned effective and we continued to develop it
Payment for the ads was made partly on behalf of the client client and partly on behalf of our agents in China.
We've got a 3% sales increase in China due to resellers, what allowed to save on agent commission and increase gross profit.
Eventually our client got a holistic portrait of the audience of the b2b segment in China; tested hypotheses and now use only working channels; increased wholesale by 3% and increased gross profit.
Meet the specialists who halped to make this awesome project!
I would like to thank SAI team. They helped us to optimize website https://ssnab.online, set up a target ads in Russia. Special thanks for promotion on China market and help qwith setting up difficult ads tools at 1688.com and WeChat.
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Company owner CEO Strategist Marketer with 9 years background