Make no mistake: business is booming in China. The country features over a billion consumers. The average affluence of residents is constantly growing, and Chinese innovation is continually changing the world.
Despite the positives, many foreign entrants into China fall flat on their face. To avoid doing the same, consider the following five topics before transporting your business into China.
1. Research the market
It’s an obvious point, right? Well those with an established business already can overlook the need for research. Nevertheless, when entering a new market like China, you need to have a full understanding about the landscape. There are also plenty of questions you need to find answers for, including:
- Is there a demand for the product/service I’m offering?
- Based on geographical differences, is the product/service even useful in China?
- What alterations are necessary, if any?
If you don’t have the answers, test the product or service in this new market before even thinking of going straight to launch. Only then will you know if China is a feasible destination for expansion.
2. A watertight strategy is vital
Attempting to enter a new market overseas is a massive undertaking. It is a drain on finances, resources and time. The level of risk also must be considered. If your company is a major flop in China, it could ultimately result in it going out of business altogether. Consequently, it is necessary to have a strong strategy in place. This means utilising your research, understanding China’s cultural context, adapting to local platforms, and so on. If the strategy isn’t viable, it is time to look at different avenues for your business.
3. Prepare to adapt
Adapting with the times is key for any business, yet people can prove to be stubborn when it comes to adapting with a culture change. It’s important that you gain an understanding of China’s culture, their consumer behaviours, and what makes them pay attention in terms of marketing. Regarding the latter, you will almost certainly have to readjust the promotional side of your business. For instance, the social media channels you currently use are banned in China and replaced with alternatives.
4. Hire locals
You might not be an expert on the local market, but this doesn’t stop your employees from knowing the lay of the land. With the cultural and language barrier alone, it is highly recommended to recruit a local team of employees. They will also be knowledgeable about how everything works in the local area, and they will even bring a different perspective to how you run your business.
If you’re wondering how to hire locally without any issues, recruitment in China is easy with a specialist solution company. They will have a range of employees to cover many sectors, ensuring the right people are brought in for your business.
5. You won’t strike gold immediately
If you started your business from scratch, you will already know the time and effort it takes to turn it into a success. When it comes to expanding into China, remember those early struggles. Moving into the international markets will not prove to be an instant success story. It’s all about adaptation, building relationships, understanding the local market, and building a reputation. All of this takes time. As a result, ensure you budget accordingly for a long-term strategy.
