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4 points that Spanish agribusiness must take into account to export to China
Despite the trade war between China and the United States, the Asian country continues to have a strong presence in international trade, which is why many Spanish retailers try to gain a foothold in the Chinese market, although it is not easy to export to China. In this post we will explain the points that Spanish businessmen in the agribusiness sector should take into account before starting export procedures to China.
The growth of imports in the agribusiness sector from Spain to China, according to the Lafer Foundation, grew 5.5% annually in the last decade, despite the slight growth they experienced in 2018, where they barely increased 0.4% compared to 2017, where there was a rise of 6.5%. This trend is explained, among other reasons, by the expansion of the national retail network, the increase in disposable income, as well as a change in the consumption habits of Chinese citizens, strongly influenced by the West.
CONSIDERATIONS THAT AGROINDUSTRIA RETAILERS MUST DO BEFORE EXPORTING TO CHINA
The export destination. In the ‘Asian monster’ there is a heterogeneous market, since in each city the per capita income and tastes vary and, according to these, consumer preferences. Thus, when selling products with a value greater than local products, agribusiness entrepreneurs must focus on the cities with greater purchasing power such as Beijing, Shanghai, Guangzhou, Shenzhen and Chengdu.
Sales channels. The main points of sale of agri-food products are premium supermarkets and gourmet stores. Making home orders through mobile applications has popularized this type of establishments. E-commerce platforms have boosted importation. For example, Alibaba and JD.com have been essential to position Spanish agroproducts.
Fierce competition and competitive prices. There are many retailers who are looking to gain a foothold in the Asian ‘giant’ with attractive products and prices so it is advisable to approach the Economic and Commercial Offices of Spain in China to have a previous diagnosis of the product that is intended to be distributed and a Detailed explanation about your demand and business context.
Legal documentation to export. It is essential to know well the Chinese trade procedures when exporting. So if you have any questions about it, do not hesitate to ask the LegaleGo team, which specializes in advising the agri-food industry, without any commitment. These are the documents to consider:
- Commercial documents. Pro forma, commercial, customs and consular invoices, content list, certificates of origin, ATA and CPD notebooks.
- Transportation documents.
- Insurance documents.
- Legal documents
- Customs documentation: lease code, monthly VAT refund registration, Rex system, long-term supplier declaration, information certificate, Single Administrative Document (SAD), registration number and Economic Operators Registration and Identification number (EORI).
AGRO FOOD: export or early fixation certificate (AGREX), commercial quality control certificates (SOIVRE), veterinary export certificate, on-board notebook (CAB), phytosanitary certificate, OECD certification, ISTA certificate, CITES certificates, sanitary certificate For the export of food products, free sale certificate.