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Contrary to much U.S. sentiment, Molson Hart sees opportunity in China. His direct-to-consumer toy brand, Viahart, sells mostly on Amazon, though growth has slowed in recent years. China, he says, offers promise.<\/p>\n
In this our third interview (following episodes in 2022<\/a> and 2024<\/a>), he shares his plans to sell toys in that market, addressing Chinese cultural nuances, legalities, shopping preferences, and more.<\/p>\n Our entire audio, recorded from an X live stream, is embedded below. The transcript is edited for clarity and length.<\/p>\n Eric Bandholz:<\/strong> Tell us what you\u2019re up to.<\/p>\n Molson Hart:<\/strong> About 15 years ago, I founded Viahart, a direct-to-consumer educational toy brand. In 2017, I co-launched a legal tech firm with my brother to detect intellectual property infringement<\/a>. We sold that company in 2024.<\/p>\n I continue to operate Viahart. Most sales come through Amazon, though we also sell through other ecommerce channels as well as wholesale and brick-and-mortar channels worldwide.<\/p>\n Bandholz:<\/strong> Do you see agentic shopping disrupting Amazon?<\/p>\n Hart:<\/strong> Yes, absolutely. At some point, consumers will switch from Google-style searches on Amazon to ChatGPT-style<\/a> conversations, such as \u201cI\u2019m looking for this type of product.\u201d The chatbot would then respond with options.<\/p>\n That will change ecommerce, presumably including Amazon, although it has an amazing logistical moat that is not easily penetrated. Meaningful competition to Amazon must go beyond software.<\/p>\n Bandholz:<\/strong> How do geopolitical uncertainties impact ecommerce?<\/p>\n Hart:<\/strong> I thought the depreciating dollar meant I needed more sales outside the U.S., but now the dollar is rising<\/em> against almost every currency other than China\u2019s renminbi. Who knows how things will shake out?<\/p>\n Still, I\u2019m focused on being as diversified as possible. There are structural problems in the U.S., which aren\u2019t getting better. At some point, we can no longer sweep them under the rug.<\/p>\n I\u2019ve adopted a contrarian approach with China. We are now trying to sell our toy products there. It\u2019s an enormously difficult market for foreign merchants<\/a>. We may lose money for a while, but we\u2019ll learn a lot too. Eventually, it will make financial sense for us.<\/p>\n Selling directly on China-based marketplaces requires setting up a business there: committing capital, retaining a legal representative, and, depending on the product, obtaining certifications. Someone will visit our manufacturer in China to certify we\u2019re suitable for making educational toys.<\/p>\n Foreign sellers in the U.S. have none of those requirements<\/a>. Yet other things in China are better. Marketplace referral fees are much lower than in the U.S.\u00a0 There is more live selling, more social media, more shoppable videos. I\u2019m excited to get started.<\/p>\n Bandholz:<\/strong> You speak Chinese. That must help.<\/p>\n Hart:<\/strong> Given the power of today\u2019s AI translation tools, speaking the language is not essential. I\u2019ve spent a lot of time there. It\u2019s more important to understand the culture.<\/p>\n We don\u2019t run a high-margin business in the U.S. But China offer a different story. Pedestrian U.S. brands \u2014 McDonald\u2019s, Pizza Hut, Kentucky Fried Chicken \u2014 are more upscale in China.<\/p>\n The upshot is foreign brands can price a little higher. Plus, in my experience, 3PLs in China are more accurate than in the U.S., and I don\u2019t have to worry over fulfillment costs since we\u2019re going luxury. So I\u2019m optimistic.<\/p>\n To me, the China market resembles Japan\u2019s in the 80s and 90s, when it was a huge channel for American goods. But China\u2019s market is 10 times Japan\u2019s. American companies can certainly be successful.<\/p>\n Bandholz:<\/strong> So Chinese consumers welcome American products and brands?<\/p>\n Hart:<\/strong> It varies by vertical and by the person. An office employee in Shanghai will likely be more accepting than a factory worker in an outlying province such as Guangdong or Henan.<\/p>\n U.S.-China relations in the past six months haven\u2019t helped, but in some ways it doesn\u2019t matter. At the end of the day, a great product will do well. Apple sells very well in China, for example, though not as well as five, 10 years ago.<\/p>\n The Chinese as a group are pretty nationalist. They believe historically and culturally that China is the center of the world. The country\u2019s name in Chinese is Zhongguo, which is literally \u201cthe Middle Kingdom.\u201d Residents generally see the last 100, 200 years as an aberration, with power shifting to Europe and then the United States.<\/p>\n Our Brain Flakes is an interlocking, science- and math-focused toy. I\u2019m unsure how it fits into Chinese culture. Do we promote it as a kit to build the Great Wall, the Chinese flag, or similar? Again, it depends on the person.<\/p>\n It\u2019s essential, too, to understand the cultural peculiarities. Chinese consumers are extremely price sensitive. They love coupons and getting the lowest possible price. They love saving money.<\/p>\n Yet frugality has its limits there. Chinese people generally like luxury products. You won\u2019t see anyone haggling over the purchase of a Louis Vuitton bag. To be rich is to be respected in Chinese society. So if you\u2019re affluent enough to afford a Louis Vuitton bag, go for it.<\/p>\n But again, luxury or not, foreign sellers with good products and patience will have success.<\/p>\n Remember, too, that many Chinese people \u2014 hundreds of millions \u2014 have never spoken to a foreigner. Having a conversation with a live-selling foreigner is still rare. It\u2019s very exciting for them. The product may not go viral, but it will certainly get interest on social media.<\/p>\n Bandholz:<\/strong> Where can folks follow you and buy your toys?<\/p>\n Hart:<\/strong> Follow me on TikTok<\/a>, LinkedIn<\/a>, or X<\/a>. Buy our products on BrainFlakes.com<\/a>, on TigerhartToys.com<\/a> (both are Viahart brands), or on Amazon.<\/p>\n<\/p><\/div>\n