GRACCIOZA

Graccioza, a luxury bath linens brand based in Portugal, has carved its niche in 100 markets globally, with a noteworthy presence in prestigious department stores like Bloomingdales and Harrods. Eyeing strategic expansion, Graccioza has now turned its attention towards China.

Decision to Establish a Local Subsidiary

In an effort to maintain absolute control over local operations, the management made a calculated decision to open a fully-owned subsidiary in China. Such an approach allows Graccioza not only to govern the decision-making process, financial control, and overall business management, but also to customize its strategies and operations to effectively cater to the Chinese market dynamics. This strategy contrasts starkly with operating via a distributor, where control over activities is significantly limited.

Partnering with Shanghai Jungle

Given Graccioza's size and unfamiliarity with the Chinese market, the brand sought a partner capable of registering, controlling, and staffing the local subsidiary. They needed a collaborator with ample experience in China's complex business landscape. At this point, Shanghai Jungle became an integral part of Graccioza's Chinese journey.

The Benefits: Direct Market Access and Enhanced Control

By establishing a local subsidiary, Graccioza paves the way for direct access to distribution channels and retailers in China, fostering a physical presence in the market. This strategy facilitates relationship building with key stakeholders, thus ensuring efficient product distribution. Moreover, it empowers Graccioza to tailor its offerings to the market. In the arena of intellectual property rights and brand protection, the local subsidiary approach offers an added layer of control, fortifying the brand's stance in the Chinese market.

Registering and Establishing the Local Subsidiary

Shanghai Jungle guided Graccioza through the process of registering a Wholly Foreign-Owned Enterprise (WFOE), culminating in the successful establishment of their local subsidiary in Shanghai in fall 2021. Following the company's registration, Shanghai Jungle undertook a series of necessary administrative tasks, including setting up a company bank account, securing an import license, and registering the company in the local tax system, to name a few.

Importing Products

With the company registered, we located a suitable warehouse and coordinated the import of products from Portugal. This process entailed the declaration of goods, tax payments, and additional administrative tasks, all handled by our team.

Hiring New Staff

Understanding Graccioza's interest in catering to both online and offline sales channels, given their target audience, we adopted a dual strategy. To bolster this approach, we brought on board a dedicated Chinese sales representative, who works solely on Graccioza's portfolio. He operates from the Shanghai Jungle offices under our supervision, working hand in hand with the rest of our team.

Collaborative Setup for Rapid Growth

Our close-knit arrangement creates an environment conducive to knowledge exchange between our Shanghai Jungle team and Graccioza's China office. This setup effectively accelerates the company's growth by utilizing the combined experience and insights from both teams. In addition, we manage the Graccioza team directly, a critical component of the operation that would be challenging to accomplish remotely from Portugal. This on-site management ensures a seamless flow of operations and an immediate response to evolving market dynamics.

Brand Localization and Trademark Registration

Simultaneously, we undertook the task of brand localization by crafting an appropriate Chinese name that resonates with the target audience. We then proceeded to register both the English and Chinese trademarks at the China Trademark Office. The registration was meticulously done under the requisite categories, ensuring the shareholder company retained ownership rights. This attention to detail in the early stages sets the foundation for brand recognition and protection within the Chinese market.

Digital Presence and Content Creation

Once we successfully tackled the trademark and naming necessities, we moved to create Graccioza's digital footprint in the Chinese market. Registration of social media accounts on major platforms such as WeChat, RED, and Douyin, as well as on other supporting channels, was initiated to boost brand communication.

Simultaneously, we established flagship stores on key e-commerce platforms like Tmall, RED, and Douyin, which also included the development of a WeChat shop.

Meanwhile, our dedicated team of content specialists was hard at work crafting engaging and visually appealing content, aligning with the luxury aesthetic of Graccioza. This dual-pronged approach ensured that while our efforts in creating a robust digital presence were underway, a consistent and high-quality stream of content was being readied for publication.