GoldenElms金榆 Digest #004: Hangzhou Office + Warehouse!
Hangzhou Office + Warehouse
March 25th, 2018 – March 31st, 2018
Big step forward this week — we have an office and warehouse to ship product out of!!
We’re also almost done finalizing our first order of gDiapers and publishing our market prices.
LifeCow HQ is going to operate out of Hangzhou. There is a ton of e-commerce talent here, thanks to Alibaba, and has all the people infrastructure we need. I just need to recruit my brains out.
Sun Nan, a good friend of mine, introduced me to Li You who runs a very successful TaoBao store selling bamboo/wooden umbrellas (really cool product). He was nice enough to let me set up shop in his office and use part of his warehouse to ship!
Behind the office has a gorgeous patio and right next door is a woodworking center (very Oregon!). Most important of all, there is a Burger King and Starbucks upstairs :).
My desk will be on the right
All will be cleared ~30 m2
Umbrella designer and CEO – Li You
Here’s the office is on a map… (this is Hangzhou and that’s West Lake)
It’s on the north side of West Lake in Hangzhou, near Alibaba’s headquarters and I’ll be living nearby.
In the next few days, we’re going to be placing our order for the first run of gDiapers — show time! We should be ready to hit the market in the 45 days!
Pricing in the Chinese market is critical and complicated. It’s not wholesale + 100% markup.
There are tons of different channels: direct to consumer, distributors (provincial, city, municipality), agents, WeChat, which demands different pricing. Pricing strategy can make or break a successful market entry.
Feel free to ping me if you’d like to learn more.
We’ve been having our target market try the product! They’re loving it and we’re learning a lot re product messaging.
“Localization” is key towards being successful in the Chinese market – whether that’s changing the menu at KFC or creating a lower-priced offering, what doesn’t work is purely exporting products/business models.
We still have a lot to learn.
Since we don’t have inventory, the best baby’s can do is wear the diaper on their heads :).
Big shoutout to 孙楠 (Sun Nan) who connected me to the office, warehouse, and apartment (full service!)
Onwards and upwards!