I’m often asked about how a brand entering #China can compete with counterfeit products or similar items being sold at a deep discount. How can anyone make money like this? Is it just a race to the bottom?
Let me be blunt… the idea that you have to sell purely on discounts is WRONG.
Here’s an example. We took over a popular headphones brand from a distributor who was trading to the lowest price. The average selling price for a set of headphones from this distributor was under 1000 RMB.
We optimized the store around items selling for more than 1500 RMB & reset the market #price for their headphones at 1700 RMB. Because we had proper control of the IP, we were also able to knock out all the counterfeiters squatting at the top of the search results.
Over time, we've been able to do this successfully in 30+ categories. Competitiveness in China is much more about the total offer than the bottom dollar.