How to save 25% on purchasing and introduce a new brand in Ukraine
How we brought to Ukraine the Oma Fitness brand of sports equipment, which was not previously represented on the market while reducing the cost, which helped the client enter wholesale sales.
Ukrainian online store has been selling sports simulators for more than 7 years. The assortment included various brands, including Chinese-made sports cardio equipment: treadmills, elliptical trainers, and exercise bikes. The sale of this product category to the final consumer has been carried out thanks to cooperation with Ukrainian distributors. At the end of 2017, the management decided to import sports cardio equipment from China to sell them through an online store and create their own distribution network.
At the same time, the owner and business manager is a specialist in foreign economic activity with many years of experience purchasing goods in China in various commodity categories. He completely took over the search and selection of a brand that suits his needs. He set himself the task of significantly reducing the cost of goods compared to similar ones from distributors in Ukraine and finding such a trademark - a brand - that was not previously sold in Ukraine to become its representative and build a distribution network.
Join the negotiation process with a Chinese manufacturer at the stage of signing the contract, organize the purchase and delivery. Carry out cargo inspection and take responsibility for customs clearance.
After attending several Chinese sports equipment exhibitions, the customer's search narrowed down to 3 brands of sports cardio equipment.
Initially, I considered sports equipment for the home and a semi-professional line
The client decided to import the Oma Fitness brand of sports equipment to Ukraine, the plant's own trademark, which produces such well-known international sports brands as Kettler, HouseFit, and Tunturi.
I chose the Taiwanese brand Oma Fitness, whose main production capacity was concentrated in China. The products of the company's factories have already established themselves in the Ukrainian market under the brands Kettler, HouseFit, and Tunturi. Now they have a significant share in the segment of cardio equipment for home use and are successfully sold in Ukraine. The Oma Fitness brand had not previously been represented in our country, just like the other two among which I chose. But, since I already had experience selling products manufactured at the same facilities as Oma Fitness, I preferred a trusted manufacturer. I was also satisfied with the price segment of goods — medium - medium+
A few days later, a negotiation process began. The client agreed with the manufacturer to produce a batch of sports simulators Oma Fitness - treadmills, exercise bikes, and orbiters.
M3Cargo joined at the stage of signing the contract and payment. By agreement with the client, the carrier company assumed part of the risks by making an advance payment to the manufacturer in the amount of 30%.
M3Cargo is not only fully responsible for the delivery of cargo to the customer's warehouse but also shares its procurement risks. We allow customers not to make 100% prepayment but to pay the transaction step by step, without freezing funds. A regular customer can get a commodity loan - long-term or short-term cargo financing before delivery to the warehouse in Ukraine: in this case, he makes a prepayment at the stage of signing a transaction with a partner in China in the amount of 30-40%. In some cases, the transaction can be financed by M3Cargo even before the start of production. Offering such conditions, we show maximum interest in the success of the transaction and in the fact that the cargo is delivered to the client: a) as soon as possible; b) met its requirements and quality standards; c) was delivered undamaged; d) as soon as possible got to the implementation of the end user.
A few days later, the factory launched the production of a batch of cardio equipment for the client's order.
After the inspection of the goods, the client received confirmation of the conformity of the products to his requirements and the quality declared by the manufacturer. The process of loading into the container has begun.
While the container was shipping, the client could track its path on the M3Cargo website using tracking.
During the entire transaction, the client was actively working on creating the site of the distributor TM Oma Fitness in Ukraine, Oma-fitness.com.ua, to start sales as quickly as possible immediately after receiving the cargo.
After the arrival of the cargo at the warehouse and testing of the equipment, the client launched the sale of Oma Fitness sports equipment and began to develop its own distribution network.
- The client reduced the cost of goods by 25% and introduced a new brand to the Ukrainian market;
- Financing the transaction by M3Cargo at the first stage significantly reduced the risks of the transaction, and the client received a deferred payment;
- The client has expanded its activity: entered the wholesale market and began to build a distribution network in Ukraine;
- He didn't freeze the money, and he paid in stages.
How to save 25% on purchasing and introduce a new brand in Ukraine
