China's huge consumer market is now attracting more and
more foreign companies to take control of their distribution and
manage their own retail sales.
China has historically been an ideal destination for
outsourcing manufacturing operations. Rogier van
Bijnen and Maarten Roos of
R&P China Lawyers discuss the legal challenges
of this strategy and how China's rule of law may affect many
trying to set up shop.
The pull of China's consumer market cannot be understated.
Even manufacturing companies who do not conduct retail sales
anywhere else in the world are being attracted by the dazzling
numbers offered by China's (online) market. Initially many used
B2B solutions, leaving Chinese distributors to sell direct to
consumers. However, while this solution provides easy market entry,
margins are thin and companies have no direct influence over
marketing strategies. Now, numerous third-party online platforms,
like Tmall (B2C), Taobao (C2C) and Alibaba (B2B), and
