For global brands entering the Chinese market, working with a trade partner (TP) is often a necessary step. TPs are certified ecommerce operators who help brands manage flagship stores on major platforms like Tmall and JD.com.
But while TPs can unlock major opportunities, they can just as easily become a barrier to growth. The relationship you build with your TP can make or break your China ecommerce strategy.
Based on years of working closely with international clients across fashion, beauty, sports and premium lifestyle sectors, here are five critical ways a TP can either boost—or ruin—your brand’s success in China:
1. TP Selection: It's Not Just About Credentials
Too many brands rush into TP partnerships after receiving a glossy pitch or an unsolicited email. While some TPs proactively reach out with strong sales tactics, this doesn’t mean they’re the right match.
What matters most? A thorough selection process that evaluates operational capability, marketplace relationships and brand relevance. You need a partner with the right category experience and genuine interest in your brand—not just a long client list.
At Hot Pot China, we recommend brands to treat TP selection like seeking a long-term leadership hire. Benchmark multiple partners, assess their motivation and aim to make a decision with a 10-year partnership mindset.
Watch the video below from our recent webinar for a more detailed walkthrough on TP selection:
Even the best-selected TP can falter without the right foundation.
Don’t underestimate the work required to set up a TP relationship properly. Brands need to assign internal ownership, align on ways of working and clearly define roles and responsibilities. Skipping these steps leads to confusion, delays and ultimately poor results.
One common pitfall? Over-relying on the TP to "just get on with it" while the brand takes a back seat. The reality: you need to stay involved and act as a guardian for your brand in China.
Establish direct contact between legal, product and operations teams early on. And wherever possible, arrange for TP team members to visit your HQ or vice versa.
3. Signs the Relationship Is Turning Sour
Things don't always go to plan. When performance starts to slide, it’s important to understand the root cause.
Red flags include:
- A drop in communication or overly defensive responses
- Lack of transparency on store data and KPIs
- One-sided commercial pressure (e.g. aggressive demands for new SKUs or discounts)
- Weak brand representation or neglect of creative standards
In many cases, the issue is poor team allocation or a lack of senior attention. In others, the TP may have lost interest because your brand is no longer a top priority.
If you feel like data is being withheld or communication is off, don’t wait. Challenge it directly and consult an expert to benchmark performance and reporting quality.
4. Resetting Your TP Relationship
Sometimes the best solution is to fix the existing relationship. Other times, a reset is required.
If your TP won’t engage constructively on team resourcing, performance strategy or commercial realignment, it may be time to exit. Ending the relationship is rarely simple. TPs may hold your store license, control customer data or still own stock.
You should handle exits with tact. Appoint a seasoned negotiator, secure platform support and plan for a transition period. In some cases, it’s better to build a new flagship store from scratch than to stay locked into a dysfunctional setup.
5. Long-Term Growth Comes From Partnership, Not Transaction
A good TP doesn’t just fulfill orders—they help your brand grow.
The best TP relationships are built on shared ambition, clear KPIs, regular data-driven reviews and two-way feedback. Brands that engage consistently and treat their TP as a true partner tend to see stronger results over time.
At Hot Pot, we recommend brands to include performance-based incentives and shared success metrics in your contract. Your TP should be just as invested in your long-term growth as you are.
Choosing and managing a TP isn’t just a box to tick—it’s one of the most important strategic decisions you’ll make in China. With the right process, structure and relationship management, TPs can be a major growth engine. Get it wrong, and the cost—both financial and brand—can be significant.
Need help with your TP strategy?
Hot Pot China has supported dozens of international brands in selecting, setting up and, when needed, resetting their TP partnerships. If you’d like to discuss your ecommerce challenges or ambitions, book a free consultation today or email us at nihao@hotpotchina.com.
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Featured image via Unsplash
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