{"id":16366,"date":"2025-07-12T13:45:05","date_gmt":"2025-07-12T13:45:05","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=16366"},"modified":"2025-07-14T15:55:21","modified_gmt":"2025-07-14T15:55:21","slug":"part-2-what-to-do-if-your-relationship-with-a-chinese-distributor-goes-wrong","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/part-2-what-to-do-if-your-relationship-with-a-chinese-distributor-goes-wrong\/","title":{"rendered":"Part 2: What to do if your relationship with a Chinese distributor goes wrong"},"content":{"rendered":"\n

Whether you want to regain control, stay in the market or make a clean break, here\u2019s how to manage a breakdown with your Chinese distributor, and how to avoid it becoming a full-blown disaster<\/h2>\n\n\n\n

If Part 1 of this series focused on what brands must do to prepare before signing with a Chinese distributor, Part 2 explores the more difficult scenario: what happens if that relationship breaks down?<\/p>\n\n\n\n

As Zarina Kanji, Managing Director UK & Europe at WPIC<\/a>, puts it: \u201cThe best thing is to avoid getting stuck in the first place.\u201d But if things do go wrong, whether the distributor isn\u2019t delivering, the market strategy has changed, or the working relationship has simply soured, brands must move swiftly, strategically and with clarity.<\/p>\n\n\n

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\u201cTrust is absolutely fundamental in Asia,\u201d says Kanji. \u201cIt\u2019s a region where relationships matter. The number of UK brands and beauty partners is small, people talk. If you can keep things professional and polite, you\u2019ll stand a better chance of exiting on good terms.\u201d<\/p>\n\n\n\n

That\u2019s not always easy, but it\u2019s critical. \u201cIf you\u2019re planning to stay in the Chinese market, you\u2019ll need to line up a new partner and manage the transition carefully,\u201d she explains. \u201cPlatforms like Alibaba or an agency like WPIC can sometimes support the handover. The new partner might help with transferring stock, keeping the store live and downtime minimal. But this is only possible if the breakup isn\u2019t acrimonious.\u201d<\/p>\n\n\n\n

If tempers flare or the relationship turns hostile, things can spiral quickly: stores shut down, sales data is lost, and customer reviews disappear. \u201cIn the worst-case scenario,\u201d she adds, \u201cit\u2019s a reminder of why doing due diligence upfront\u2014 and retaining ownership of your store \u2014 is so important.\u201d<\/p>\n\n\n\n

A phased approach\u2014not a scorched earth<\/strong><\/h2>\n\n\n\n

Kristina Koehler-Coluccia, Head of Business Advisory at Woodburn Accountants & Advisors<\/a>, has seen this scenario play out many times, including with long-established brands.<\/p>\n\n\n\n

\u201cI\u2019ve worked with companies that started with wholesale, then expanded into e-commerce and even hired staff. When the time was right, they decided to set up their own company in China. But instead of cutting ties with their distributor, they took a phased approach.” In this case, the company drew up a list of everything the distributor controlled \u2014 logistics, warehousing, customs clearance \u2014 and identified what to take back in-house and what to leave in place.<\/p>\n\n\n\n

\u201cJust because the distributor\u2019s no longer right for the e-commerce or brand management side, doesn\u2019t mean they\u2019re not good at operations,\u201d says Koehler-Coluccia. \u201cSo rather than burn the bridge, keep them doing what they\u2019re good at. It also avoids triggering hostility.\u201d<\/p>\n\n\n\n

This type of staged transition can be particularly valuable for brands that rely on physical stock management. \u201cDistributors don\u2019t always just run the store,\u201d she says. \u201cThey may also hold your inventory, fulfil orders, or handle customer service. You need to think about the whole supply chain, not just the front end.\u201d<\/p>\n\n\n\n