China Market Entry Services
It’s not easy for western companies to enter the Chinese market, the Chinese market is huge but complex, and it is appealing but difficult! The Chinese government initiated the One Belt & One Road strategy and chairs The Asian Infrastructure Investment Bank (AIIB), cross border e-commerce is definitely part of China’s national strategy. China’s growing middle class is showing the world how demanding it is, the new generation in the middle class is normally well educated and has enough awareness for global brands especially for sport, leisure and luxury brands.
Any companies who intend to enter China market have to consider pros and cons very carefully.
Upside
- China consumer market is huge with the largest middle class population in the world.
- Government is encouraging Fintech innovations, China is a good testing ground for many disruptive innovations and the trial-and-error cost is relatively low.
- The venture capital market in China is dynamic. Some unicorns like Uber successfully raised huge fund from China investors.
Downside
- Regulations in China are not transparent and stable enough. There are many unregulated fields, which bring uncertainty risks.
- The internet censorship in China is very tough, The Great Firewall blocks most global internet giants including Google, Facebook, Twitter and YouTube, many multinational companies have been complaining that their users or partners in China cannot visit their official site or core system hosted outside of China properly.
- The key word for doing business in China is Relationship. Westerners normally don’t know exactly how to build up trust with customers, partners and government officers in China. Simply copying ‘best practice’ in global market to China will fail with few exceptions. Normally western company needs a ‘China ambassador’ who knows China stories and has the right mindset on how to deal with China.
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