Welfull Group Co., Ltd. is modern B2B distributor in China. Group has infrastructure for both Cross-border E-commerce (CBEC) imports and General Trade imports. This enables selling products online in E-commerce platforms and offline in brick-and-mortar shops. Welfull’s distribution services include market analyzing, market entry strategy planning, brand positioning, regulatory compliance, inbound logistics, customs clearance, warehousing, order fulfillment, digital marketing, channel development, sales and customer service.
Welfull Scandinavia is a sourcing organization responsible for the strategic sourcing and operative purchasing of Welfull Group in consumer goods sector in Europe and North-America. We actively source for new products and facilitate the demand we get from our current Chinese wholesale and retail customers to actual products. In new private label product development projects we bring product concepts to reality by sourcing raw materials, indirect materials and production services, and overseeing the production and logistics.
Improvement of living standards, rapid development of E-commerce and more aware consumers make Chinese market large, diverse and attractive for foreign brands. China's population is 1.42 billion, China's online population is over 770 million and in June 2018 the total retail sales of consumer goods reached 3,084.2 billion yuan (US$461.05 bn) according to National Bureau of Statistics of China.
The problem in the most ventures to the Chinese market is the lack of understanding the needs and changing characteristics of Chinese consumers. Local and solid experience level the way to understand these issues and makes it possible to create interpersonal trust in seller-buyer relationships, which is requirement for successful distribution in China.
Our mission is to find unique products and brands that represent quality, sustainability and create value to consumers. We work with small emerging brands and with larger established brands. Our goal is to establish efficient, reliable and transparent partnerships in which we create long-term success together.
When we look into potential products and manufacturers we assess whether those comply with our strategy and requirements.
With each product, we ask ourselves what kind of practical benefits consumers will feel from using this product? As international brands tend to be more expensive it must be clear what the value is for which customer is paying. Together with the manufacturers we discuss what products are we going to sell in China, what are the suggested retail prices of different products and what is suppose to be achieved in China. Sometimes it is not possible to sell manufacturer’s products in China as they are. Both the brand and products might need small adjustments to fit into China market. Cultural distinctions can require change of colors, sizes or texts in packaging and marketing.
There are few things that demonstrate the potential of certain products and brands in China.
First one is to find out the current activities in China. Is the manufacturer selling in China already? If for example the company is selling in one channel, this data can be used to indicate the level of consumer traction that can be achieved through other channels.
Then we look at the competitors. We gather data of competitors and analyze their success in the market niche. Looking into competitive map also reveals the potential of the prospect in the market.
Next we assess the Grey Market. Grey market trade analysis should always be conducted to evaluate the availability of products outside the normal distribution channels.
One major thing to consider is the home market of the products. Chinese consumers recognize and respect the international brands that are segment leaders in their home country. Segment leadership will further pave the road to reach sufficient brand equity in desired schedule.
Finally we will evaluate the social media traction. Level of emotional connectivity between the brand and consumers in the home market indicates whether the brand can work in China. On-going discussion between brand and its customers and active sharing, commenting and conversation in their social media channels is positive sign about the capability of a brand to succeed in ever digitizing China.
Our supply chains are supported with outsourced overseas warehouse in Germany and local bonded warehouses in Hangzhou and Ningbo. We work with carefully selected logistics service providers to ensure smooth and constant flow of goods. Depending on the buying volume from different manufacturers located in Europe we either ship the goods directly from manufacturers to our bonded warehouses or consolidate the shipments in our European warehouse to reduce costs and carbon footprint. By effectively managing the logistics operations with strong attention to detail we can ensure that the requirements of customs procedures, regulations and delivery schedules are met.
Timely deliveries are highly valued and therefore logistics play important role in the Chinese market. Tmall requires that in domestic deliveries the products are located in China and that the vendor ships an order within 72 hours after the purchase. In overseas deliveries the vendor must complete the delivery within 120 hours and the whole transportation process from overseas to China must be trackable. In China the area to cover is extensive, pace is fast and costs must be low. This further highlights the need to select the right partners for every step of each supply chain.
Our job is to create solutions which makes it straightforward and easy for small, medium and large businesses to deliver, market and sell their products to China. This is achieved by establishing close working relationships, with a high degree of trust and regular communication.
We want to improve the quality of people’s lives as well as be part of growing the market of environmentally friendly products in China. That is always our goal when developing new products for the Chinese market.