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Market Entry Strategy to China
David Zhang - MD, Buyers Council
Ulaanbaatar, Mongolia23rd September, 2017
About Buyers Council
• Formally established in 2012• Member retailers: 30+
– Beijing CSF, Beijing HG, Anhui Letus, Henan Jinhaolai, Fujian Guang Park, etc.
– Total number of retail outlet: 300+– Annual Turnover: CNY15 Billion
• Activities – Seminars, workshops, International Travel Studies– Sharing of resources & information, Joint buying– Networking events: Conferences + Exhibitions
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Modern Retail in China
• Market share of organized retail less than 10% – Consumer Market: CNY33,232.- billion– Top100 Retailers: CNY2,100.- billion
• Top 5 Retailers
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Rank Retailer Store Number Turnover
1 Suning 1,510 CNY173.5 billion
2 Gome 1,628 CNY164.6 billion
3 CRC Vanguard 3,224 CNY103.5 billion
4 RT-Mart 368 CNY93.3 billion
5 Wal-mart China 439 CNY76.7 billion
Growth of E-Commerce
• Alibaba– GMV: CNY3,767,000 billion– Gross Income: CNY158.3 billion– Net Profit: 57.8 billion
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Mr. Hema of Alibaba
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Consumer Trends
• The Millennials are becoming mainstream– Results of Single Child Policy– Born with Internet– Smartphone/Social media
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Food Safety
• No. 1 consumer concern • Top priority of government • Enormous efforts of retailers and suppliers
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Recommendations
• Emphasis on the undisputable quality of Mongolian Agricultural products
• Understanding of government regulations• Seize opportunities of social media• Choose a right partner
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See You in China