Expanding Market Reach for a Swedish Leather Accessories Business in China

A small but ambitious leather accessories business based in northern Sweden sought to expand its market by entering the Chinese retail sector. Specializing in high-end products like handbags, bracelets, and cellphone covers, the company required expert guidance to navigate the complex Chinese market landscape. I provided comprehensive support, facilitating their entry from initial market research to securing retail contracts.

Company Background

The company, a boutique firm with only five employees, had established a strong local presence in Sweden. Recognized for their craftsmanship and quality, they aimed to replicate their success in China, one of the world’s largest and most competitive markets for luxury goods.

Challenge

The primary challenges were:

• Lack of familiarity with the Chinese market and culture.

• Identifying and connecting with suitable high-end retailers who could appreciate and stock their products.

• Navigating the logistical and bureaucratic hurdles associated with international business expansion, including visa applications and travel arrangements.

  
  

Objectives

The goals of the project included:

1. Educate the team about the Chinese market and cultural expectations.

2. Conduct detailed market research to identify potential high-end retailers in China.

3. Facilitate the visa application process and travel arrangements.

4. Arrange meetings with potential retailers and assist in negotiations.

5. Secure contracts with major Chinese retailers to distribute their products.

   
   

Solution Implementation

Phase 1: Preliminary Education and Market Research

I began by hosting initial Zoom meetings to introduce the team to the Chinese market dynamics and cultural nuances. Following this, I conducted extensive market research to curate a list of potential retailers that align with the brand’s high-end positioning.

Phase 2: Detailed Retailer Introductions and Visa Application

In our second meeting, I presented detailed profiles of each identified retailer, explaining their suitability and potential for partnership. I then assisted the team in applying for business visas, handling the entire online application process.

Phase 3: Travel Arrangements and In-Person Meetings

Once visas were secured, I arranged flights from Stockholm to Shanghai via Helsinki. Upon their arrival at Pudong Airport, I drove them to the SAS Radisson Blu at People’s Square. Over the following days, we visited potential retailers in Shanghai and Zhejiang province, with my colleague Matthew assisting in translations and negotiations.

Phase 4: Cultural Integration and Final Negotiations

After a week of business meetings, I guided the team through popular tourist sites in Shanghai and concluded their trip with a weekend in Beijing. This cultural immersion helped deepen their understanding and appreciation of the market they were entering.

Results

The trip was highly successful, culminating in the signing of contracts with three major chains of high-end leather goods. The products will hit the stores in June 2024, marking a significant milestone in the company’s global expansion strategy.

Conclusion

The strategic approach to entering the Chinese market, from initial education and precise market research to effective negotiation and cultural immersion, proved crucial. The Swedish leather accessories business successfully established a presence in China, with promising prospects for growth and continued partnership. This case study underscores the importance of detailed preparation, local assistance, and cultural appreciation in international business expansions.