For British consumer brands expanding into China, appointing a distributor is a pivotal moment but one that is often misunderstood. Too often, the partnership is viewed as transactional, with responsibility for growth quietly outsourced to the Chinese side. But to distributors in China, what matters most is not just the product, but the relationship. They want UK brands to be proactive, responsive and collaborative, willing to invest in the shared success of the partnership from the outset.

The groundwork matters. Chinese distributors expect British companies to arrive prepared. That means more than having a polished pitch deck; it means having already registered trademarks, done basic due diligence on competitors, understood import regulations, and defined how the brand will support local compliance. A surprising number of UK brands skip these steps, assuming that it’s the distributor’s job to sort out the detail. Many suppliers fail at this first hurdle by ignoring documentation standards or treating China’s import regime as a secondary concern. Getting it right first time is the best option, as regulatory compliance is as important to long-term brand building as social media campaigns or glossy packaging.

One of the most common pain points cited by distributors is vague or inconsistent communication. What begins as enthusiasm quickly sours when a UK partner fails to provide clear answers on pricing, promotional support or stock planning. Brands that don’t take the time to explain their commercial model, or who delay decisions while head office deliberates, can leave Chinese partners stranded, trying to navigate local retailer and consumer expectations with incomplete information.

Contracts, while not glamorous, play a vital role in protecting both sides from misunderstanding. Distributors want formal clarity on pricing, margins, promotional responsibilities and product availability. They also want to understand how marketing materials will be created, who signs them off, and what kind of investment will be made into brand building locally. In the absence of these basics, even the strongest product may flounder.

Even with a robust agreement in place, the relationship hinges on trust and communication. Regular check-ins are expected. Monthly reports are standard. Shared forecasting tools, collaborative WeChat groups and digital dashboards are common practice. Yet many UK companies still treat the China market as peripheral, failing to dedicate personnel or time to maintain momentum. Distributors notice. As one regional partner working with a major British homeware brand put it, “When they stop turning up to meetings, we stop believing they care.”

For many distributors, the most valuable UK partners are those willing to learn and adapt. British brands often arrive with a fixed sense of their visual identity or messaging, assuming it will translate directly to Chinese consumers. But effective distributors see local insight as their core contribution to the partnership, and they expect to be heard. At a recent CBBC consumer roundtable, buyers described successful collaborations in which brands revised colour schemes, updated taglines and reconfigured packaging based on distributor-led testing. Those that resisted feedback — especially on details like ingredient labelling or product sizes — were seen as difficult to work with, even when demand existed.

Beyond adaptation, distributors also expect commitment to joint marketing. Most do not want to carry the cost of consumer acquisition alone, nor can they succeed without brand investment. British brands with the greatest traction in China are those who co-create campaigns, fund livestreaming with KOLs, attend in-market events and respond quickly to promotional opportunities. This doesn’t always mean huge budgets, but it does mean flexibility and speed. In sectors like cosmetics, wellness and high-end grocery, brands that fail to engage digitally — on platforms like Little Red Book, Douyin or Tmall — can become invisible, even if they have shelf space. A lack of digital fluency or an unwillingness to share brand assets is viewed by distributors as a red flag.

There are also structural challenges. Many UK brands, particularly smaller ones, still experiment with multiple distributors at once — one for e-commerce, another for offline, and sometimes additional partners for duty-free or cross-border trade. Unless tightly managed, this often leads to price undercutting and confusion. Distributors operating in fragmented environments are often left firefighting, while their UK partners attempt to course-correct from a distance. Brands who want to work with more than one distributor must have rigorous internal systems and a clear channel strategy. If not, they risk alienating their most committed partners.

When these dynamics work well, the results can be transformative. One Scottish food brand saw its China orders quadruple within two years, driven by regular planning calls, mutual investment in social media, and constant feedback loops around packaging and logistics. Crucially, the UK team made themselves available weekly — something the distributor cited as essential to building trust. Similarly, a British skincare brand working with a regional distributor in Jiangsu said the partnership succeeded because they treated the Chinese team as their “marketing co-founders”, not just as a route to shelf space.

In China, where trends move quickly, partnerships built on process alone rarely last. But those built on openness, accountability and co-creation tend to grow stronger over time. UK brands that view their distributor not as an outsourced sales agent but as an embedded partner — someone who understands the market, speaks to consumers, and carries the risk — are the ones that create lasting value on both sides.

Join CBBC’s China Consumer 2025 to learn more about the luxury and retail sector in China

The post What Chinese distributors expect from UK brands in order to deliver the best value appeared first on Focus - China Britain Business Council.

It’s no secret that the Chinese market offers immense opportunities for international brands. But engaging a distributor without thorough preparation can leave businesses exposed, misrepresented, or worse, locked out of their own success. Two experts, Zarina Kanji, Managing Director UK & Europe at WPIC, and Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors, offer a clear-eyed look at the key steps British companies must take before signing anything.

The first lesson: do your homework. “Due diligence is everything,” says Kanji. “Ask for case studies from the distributor of companies they have worked with before and speak to them about their experience with that distributor. Ask partners within the network for their insights. It’s a relatively small community, so introductions are possible. Speak to other brands about their experience—but be discerning. Some may have had a bad story, but that might be down to getting the price wrong, or targeting the wrong market.”

She recommends using networks like the China-Britain Business Council (CBBC) and the Department for Business and Trade (DBT) to get introductions and independent perspectives. But due diligence isn’t just about reputation, it’s also about understanding what’s actually being offered.

“Governance is important,” she says. “You need to know the breadth of services on offer. Is it an end-to-end service? Are they only running social campaigns, or are they also providing logistics, data reporting, and customer service? Some brands charge less, but do a lot less. You have to understand what’s required of you as the brand.”

For example, larger partners like WPIC may put 10 to 15 people on a single brand account. But smaller partners often require brands to provide considerable input, time and resources of their own. If your internal team can’t handle the load, the relationship may suffer.

Know your value…and your size

A common mistake, Kanji warns, is choosing a distributor that’s either too big or too small. “If your brand is under £10 million in annual turnover, don’t go for a giant partner like Baozun. You’ll be competing with Nike or Lululemon and you simply won’t get the attention.”

Instead, she advises finding partners at a comparable size. “You want someone who sees value in your business and is incentivised to make it grow, not just to hit quotas.”

Own your store. Protect your IP.

Perhaps the most critical red flag is giving away too much control, too early. “Make sure you own your store in China,” says Kanji. “The worst-case scenario is handing ownership of your Tmall or JD store to the distributor. Once they have that, they have the upper hand. That’s where the most costly and complex challenges come from.”

Koehler-Coluccia agrees emphatically. “There must be a clause in the distribution agreement that clearly states: all collateral belongs to the brand,” she says. “That includes the Tmall and JD stores, the inventory, all the digital assets. And if the contract ends, there must be a clean transfer of those assets back to the brand.”

In practice, she adds, this means spelling everything out in the contract—including an itemised list of what the distributor is setting up, and who owns what. Too often, British companies rely on UK lawyers for contracts that will be enforced in China. “Don’t do that,” she says. “Hire a Chinese law firm. You’re playing by Chinese rules—use someone who knows the game.”

Plan your exit before you start

One of Koehler-Coluccia’s most repeated mantras is simple: have an exit strategy. “There needs to be a section in the contract that says: if this doesn’t work, here’s how we unwind it. That includes transferring stores, assets, remaining stock. Don’t wait until things go wrong to figure that out.” It’s also worth accounting for the possibility that the distributor might lose money on the venture. “If they spend on marketing or logistics and don’t see ROI, what happens? That needs to be agreed up front—whether that’s clawback clauses or refund triggers.”

Understand the costs…and how to get paid

The Chinese e-commerce ecosystem is expensive and complex. Brands must factor in multiple layers of fees: platform deposits (for Tmall, JD, etc.), annual platform charges, partner fees, and campaign costs. All of these need to be fully itemised from the beginning.

“Get a full breakdown,” says Kanji. “You need to know what the fees are, what frequency they’re paid, and what happens if something goes wrong. Budgeting without this knowledge is asking for trouble.”

Remittance is another challenge. How will profits be repatriated? What’s the process for converting RMB back into pounds? These issues need to be clarified up front, with support from tax and legal advisors familiar with Chinese rules.

Stay involved from day one

For companies that assume the distributor will handle everything, both experts sound a stark warning. “Too many brands just want to delegate,” says Koehler-Coluccia. “They don’t have the internal capacity, so they assume they can just hand it off and watch the money roll in. That’s a fantasy.” Instead, she stresses the need for active involvement: “Set KPIs. Have monthly meetings. Monitor performance. If targets aren’t being hit, have that conversation early.”

It’s not uncommon, she says, for companies to ignore the setup process, then try to take control later, only to find the distributor has more leverage than expected.

“They’ll say: we put in the capital, the resources, the attention. And now you want to terminate us? If you’re not willing to pay attention from day one, what do you expect?”

Choose partners with platform access and influence

Relationships still matter in China, particularly when it comes to access and visibility. “Ask how long they’ve been in business, and how well integrated they are with platforms like Alibaba, Douyin, Xiaohongshu (RED),” says Kanji. “At WPIC, we have longstanding partnerships, so we get early access to marketing campaigns or new tools. That gives our clients first-mover advantage. Some agencies don’t have those connections., they can’t pull favours, they can’t get you in early.” That kind of platform integration can be the difference between a flagship campaign and being lost in the crowd.

Eyes wide open

Ultimately, both Kanji and Koehler-Coluccia stress the same thing: be realistic. China is not a plug-and-play market. It takes time, investment, clarity, and ongoing engagement. British brands that treat their Chinese distributor as a plug-in growth engine are almost always disappointed. But with the right preparation, the right legal safeguards, and a partner aligned to your scale and ambition, the rewards can be substantial. As Koehler-Coluccia puts it, “You can’t just hand it off and hope. This is your brand. Protect it.”

Read Part 2 here: What to do if your relationship with a Chinese distributor goes wrong

The post Part 1: What to do before engaging a Chinese distributor appeared first on Focus - China Britain Business Council.

In a nutshell, a distributor is a middleman between a producer and another entity in the supply chain, be it a wholesaler, retailer or end consumer. As a reseller of products, a distributor buys directly from the producer and sells the products to those further down the chain. The main advantage of this entry model is that you can ride on the coattails of a distributor’s already-established network of sales channels without a substantial initial outlay on infrastructure and logistics. Furthermore, since a distributor’s scope of operation can be very wide – encompassing customs clearance, storage, shipping, sales and marketing – those opting for a more comprehensive service may be inclined towards this method.

Distributors can be found at trade shows and exhibitions, through referrals or third-party specialist agencies, via introductions by chambers of commerce and on e-commerce platforms. While it may be tempting to choose the first prospective distributor that comes along, rogue distributors have the potential to break your business in China, so proceed with caution and circumspection.

The best China distributor is more than just a sales channel

The best distributors do more than move boxes. They understand your sector and can navigate local compliance, consumer preferences and channel dynamics.

When approaching a potential distributor, ask about their experience with foreign brands. Can they provide case studies? Do they understand your product’s positioning and pricing expectations? The ability to align with your market vision is just as critical as having an expansive sales network.

While many UK businesses hope to find a single nationwide partner, the truth is China’s market is highly fragmented. A distributor with reach in Shanghai may be weak in Chengdu. Often, a regional or non-exclusive approach is more practical, if not essential.

At the same time, consider what other brands they carry. Are they already working with competitors? If so, your product could become a second priority. Conversely, partnerships with complementary brands can open the door to co-marketing and bundled distribution.

Due diligence is not optional

A recurring pitfall for UK exporters is inadequate background checks. It’s not enough to meet a potential partner at a trade show or through an online lead and assume they are credible.

You must verify that the distributor is legally licensed and has the correct business scope for your product category. This means checking their registration with the State Administration for Market Regulation (SAMR) and ensuring they hold any required import or distribution licences – particularly important for highly-regulated sectors like cosmetics, supplements, or medical devices.

Financial stability is another critical factor. Distributors with poor cash flow or excessive debt may delay payments, underinvest in marketing, or fold mid-contract. Engage a local consultancy to review their credit reports and litigation history. Reliable distributors should also be willing to provide references from other foreign clients – ideally those with similar requirements to yours.

When speaking to those references, don’t settle for platitudes. Ask whether targets were met, whether the relationship remained collaborative over time, and how the distributor handled setbacks.

Legal and commercial foundations matter

Once a distributor looks like a good fit, the real work begins: crafting a robust agreement. This should clearly define the scope of responsibilities, sales targets, marketing commitments, pricing expectations, and intellectual property (IP) protections. Be especially cautious with clauses around minimum resale pricing. Under China’s Anti-Monopoly Law, you generally cannot enforce such restrictions.

Also consider territory definitions. Will this distributor have exclusive rights to all of China? Or just to certain cities or channels? Flexibility here can give you room to work with multiple partners if needed.

It’s equally important to plan for the end of the relationship. Who owns the IP? What happens to unsold stock? Can they continue using your brand on e-commerce platforms? Many distributors register WeChat accounts, Tmall stores, and even your product’s Chinese name in their own company’s name, so clarity from day one is essential.

Don’t overlook communication, culture and compliance

Even the best-looking distributor on paper may prove difficult if communication breaks down. Pay close attention during early conversations. Do they respond promptly? Are they transparent and realistic? Do they push back or ask insightful questions – or simply say yes to everything?

Cultural alignment also plays a role. In China, business relationships often follow a slower pace at first, built on mutual trust and informal connection. A distributor that’s too quick to sign may not be invested for the long haul.

Beyond this, assess how they handle the practicalities of doing business in China. Can they manage customs clearance, pay import duties, and comply with labelling standards? Have they successfully registered similar products before? Lack of regulatory know-how could delay your shipments or result in costly rejections.

Finally, any distributor operating in today’s China must understand the country’s unique digital landscape. Success increasingly depends on platforms like Tmall, JD.com, WeChat, and even Douyin (the Chinese version of TikTok). Ask about their e-commerce strategy. Do they run flagship stores on these platforms? What’s their relationship with local influencers and content agencies? Offline distribution alone won’t cut it in a digitally-native market.

Align on control, involvement, and expectations

One of the most strategic choices you’ll make is deciding how involved you want to be. Are you looking for a turnkey partner – or do you expect input into branding, pricing, and local marketing?

If your brand is premium, your distributor must protect that positioning through selective channel choices and consistent messaging. If you’re aiming for mass-market reach, they’ll need to scale fast – and report metrics regularly.

Set expectations from the outset. Will you approve all campaigns? What reports will they provide, and how often? Is there a dedicated team for your account? The more proactive and structured the relationship, the more likely you’ll succeed together.

Final thoughts

Selecting a distributor in China is as much about partnership as performance. With the right groundwork, UK exporters can build long-lasting, mutually beneficial relationships that open the door to one of the most lucrative markets in the world. But it requires patience, planning, and a sharp eye for detail.

The post How to choose the best distributor for your business in China appeared first on Focus - China Britain Business Council.