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Why keeping a Small Quantity Stock in China Would Help Your Wine Business ?

May 3, 2016

 

 You spent money to join wine exhibitions in China.

 

You got several Chinese prospective customers who shown interest to your wine products.

After return home to your winery, you were preparing sample wines to dispatch to those interested customers.

 

Say if you got 5 customers to deliver, 6 bottles of combined labels for each location, how much would you pay?

 

Yeah, that costed you a lot.  I guessed, even not counting the cost of wines, for the courier fare alone, it would probably cost you around €250 - €300 per delivery (assuming you are a winery from Europe).  That was a total of €1,250 - €1,500, a real money you only paid to bring your wines to your customers.

 

And it’s yet over.  The recipients (50% of them?) may be demanded by the Chinese Customs to pay duty and taxes to what they would receive.  You might declare the goods value at €10 and specified SAMPLES ONLY, while Chinese Custom would do their way to check and estimate the REAL value of these wines so to charge the duty and taxes.  In such case, some of your clients would give up to collect the goods.  And your promotion investment and effort went into vain.

 

The above scenario is not unusual and it happens every time after a wine exhibition in China to many international wineries who want to sell to the China market.

 

While if you would consider to stock your wines in China, the fees* you paid mentioned above would help you to deploy 300 to 600 bottles of wine (half to one pallet depending their unit prices).  You are not only to fulfill to deliver sample wine orders to your customers, you could even fetch some small quantity trial orders.  Please notice the import custom declaration and clearance, quarantine and inspection of goods, preparation of Chinese back labels to the issuance of Sanitary Certificate, altogether would take another 5-6 weeks’ time (estimate) to complete.  So if you have everything ready to make immediate delivery, it increases your chance of success.

 

For those international wineries who want to know how this is possible, please contact us at info@chinawinebusiness.com for further communication.

 

* These fees do not include custom duty and other taxes.

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