(Source: https://pltfrm.com.cn)
Choosing the most effective sales model for industrial robots in the Chinese market depends on several factors, including the nature of the products, target customer segments, geographic reach, and company resources. Each model has its strengths and can be suited to different business strategies. Here’s an overview:
1. Direct Sales
Advantages: Maintains direct control over sales process, customer relationships, and branding. Allows for a deeper understanding of customer needs and direct feedback.
Best Suited For: Companies with sufficient resources to establish a local presence in China and those selling high-value, complex industrial robots where customer education and after-sales service are crucial.
Challenges: Requires substantial investment in local offices, staff, and infrastructure. It can be challenging for new entrants without an established brand in China.
2. Distributors
Advantages: Distributors can offer extensive local market knowledge, established sales networks, and customer relationships. They can handle logistics and reduce the complexity of entering a new market.
Best Suited For: Companies looking to expand quickly without significant upfront investment. Particularly effective for standard and mid-range industrial robots.
Challenges: Less control over the sales process and potential for reduced profit margins. Finding and managing reliable distributor relationships is crucial.
3. Agents
Advantages: Agents work on a commission basis, reducing the risk and investment compared to other models. They often have specific market expertise and established contacts.
Best Suited For: Companies seeking to target specific sectors or regions within China, or those testing the market before making a more substantial commitment.
Challenges: Less control over the sales and marketing process. Agents may also represent multiple brands, potentially leading to conflicts of interest.
4. Online and E-commerce Platforms
Emerging Model: With the rise of digital platforms, some industrial robot manufacturers are exploring online sales, including B2B e-commerce platforms.
Advantages: Access to a wider market, reduced overhead costs, and a modern approach aligning with China’s digital transformation.
Challenges: More suited for smaller, less complex robots. The need for significant digital marketing efforts and potential limitations in customer support and service.
5. Hybrid Models
Combination Approach: Many companies find a hybrid model effective, combining direct sales for key accounts or complex products with distributors or agents for broader market coverage.
Conclusion
The most effective sales model for industrial robots in the Chinese market will depend on the specific circumstances of the manufacturer. Larger, well-established companies might benefit more from direct sales, especially for complex, high-value robots, whereas companies new to the Chinese market or those with limited resources might find distributors or agents more suitable. A hybrid model can offer a balanced approach, leveraging the strengths of each method. It’s essential to understand market dynamics, customer behavior, and competitive landscape to make an informed decision.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
