Contrary to most American sentiments, Molson Hart sees an opportunity in China. Its direct-to-consumer toy brand, Viahart, sells mostly on Amazon, though growth has slowed in recent years. China, he says, promises.
In this, our third interview (following episodes in 2022 and 2024), he shares his plans for selling toys in this market and discusses Chinese cultural nuances, legalities, shopping preferences and more.
All of our audio recorded from the X live stream is embedded below. Transcript edited for clarity and length.
Eric Bandholz: Tell us what you’re up to.
Molson Hart: About 15 years ago, I founded Viahart, a direct-to-consumer educational toy brand. In 2017, I started a legal technology firm to detect intellectual property infringement with my brother. We sold this company in 2024.
I continue to operate Viahart. Most sales come through Amazon, although we also sell through other e-commerce channels as well as wholesale and brick-and-mortar channels worldwide.
Bandholz: Do you see agent purchases disrupting Amazon?
Deer: Yes, absolutely. At some point, consumers will move from Google-style searches on Amazon to ChatGPT-style conversations, such as “I’m looking for this type of product.” The chatbot would then respond with options.
This will change e-commerce, probably including Amazon, although it has an amazing logistics moat that is not easy to penetrate. Amazon’s meaningful competition must go beyond software.
Bandholz: How are geopolitical uncertainties affecting e-commerce?
Deer: I thought a weaker dollar meant I needed more non-US sales, but now the dollar does uprising against almost every currency other than the Chinese renminbi. Who knows how things will shake out?
Still, I focus on being as diverse as possible. There are structural problems in the US that are not improving. At some point, we can no longer sweep them under the rug.
I took the opposite approach with China. Now we are trying to sell our toys there. It is an extremely difficult market for foreign traders. We may lose money for a while, but we will also learn a lot. Ultimately, it will make financial sense for us.
Direct selling in Chinese marketplaces requires setting up a business: investing capital, retaining a legal representative and, depending on the product, obtaining certifications. Someone will visit our manufacturer in China to confirm that we are suitable for making educational toys.
Foreign sellers in the US have none of these requirements. But other things in China are better. Referral fees in the marketplace are much lower than in the US. There’s more live selling, more social media, more shoppable videos. I’m excited to get started.
Bandholz: You speak Chinese. That must help.
Deer: Given the power of today’s AI translation tools, speaking the language is not essential. I spent a lot of time there. It is more important to understand the culture.
We don’t run a high-margin business in the US, but China offers a different story. America’s pedestrian brands—McDonald’s, Pizza Hut, Kentucky Fried Chicken—are more upscale in China.
As a result, foreign brands may be priced slightly higher. Plus, in my experience, 3PLs in China are more accurate than in the US, and I don’t have to worry about fulfillment costs because it’s a luxury. So I’m an optimist.
The Chinese market resembles the Japanese market in the 1980s and 1990s, when it was a huge conduit for American goods. But the Chinese market is ten times larger than the Japanese one. American companies can certainly be successful.
Bandholz: So are Chinese consumers welcoming American products and brands?
Deer: It varies by vertical and by person. An office worker in Shanghai is likely to be more acceptable than a factory worker in a remote province like Guangdong or Henan.
US-China relations haven’t helped over the past six months, but in some ways that’s okay. At the end of the day, a great product will serve you well. Apple, for example, is selling very well in China, although not as well as it was five years ago.
The Chinese as a group are quite nationalistic. Historically and culturally, they believe that China is the center of the world. The Chinese name for the country is Zhongguo, which literally means “Middle Kingdom”. The population generally considers the last 100,200 years an aberration, with power shifting to Europe and then the United States.
Our brain flakes are an interconnected science and math toy. I’m not sure how it fits into Chinese culture. Are we promoting this as a Great Wall building kit, Chinese flag or similar? Again, it depends on the person.
It is also important to understand cultural peculiarities. Chinese consumers are extremely price sensitive. They love coupons and getting the lowest price possible. They like to save money.
However, frugality has its limits there. Chinese people generally like luxury products. You won’t see anyone haggling over buying a Louis Vuitton bag. To be rich is to be respected in Chinese society. So if you’re mobile enough to afford a Louis Vuitton bag, go for it.
But again, luxury or not, foreign sellers with good products and patience will succeed.
Remember, too, that many Chinese—hundreds of millions—have never spoken to a foreigner. A conversation with a live selling stranger is still rare. It is very exciting for them. The product may not go viral, but it will certainly generate interest on social media.
Bandholz: Where can people follow you and buy your toys?
Deer: Follow me on TikTok, LinkedIn or X. Shop our products at BrainFlakes.com, TigerhartToys.com (both Viahart brands) or Amazon.