The Chinese market for Western goods is expanding, and businesses are beginning to look at ways to be successful in Asian markets. China is experiencing solid economic expansion, and the country has expanding influence on the world stage. Several Western companies have already made the jump to China, and you can too. It’s a matter of understanding your market and planning accordingly.
Understanding Culture
China’s history goes back thousands of years in time, so it’s important that you understand some of the cultural nuances that have evolved over the course of that time. Perhaps the most widely known aspect is the concept of one’s “face.” Face is complicated for Westerners to grasp because it embodies one’s standing in society, public perception, and one’s own self esteem. Managing all of these elements together can seem daunting at first. You can give or save face through attendance of meetings, offerings of small but suitable gifts, and general sensitivity toward Chinese culture.
The good news is that Chinese business people will still want to do business with you whether you can hold chopsticks or not, as long as you have something to offer that interests them.
Honing Your Focus
Westerners hoping to break into the China should conduct market research for the media industry to discover what Chinese people are into. Understanding your market is one of the first steps toward writing a business plan, so you can think of this research as an extension of that plan. You’re no longer selling only to Westerners, so you have to work on what your market wants to see and give them a product they hunger for. One big example is how Starbucks managed its expansion into China. They were able to persuade a tea drinking nation to start trying coffee by offering them an olive branch, the Green Tea Latte.
China is an extremely diverse market, and it would be foolish to assume that a product that works in the West will be equally as exciting to the Chinese.
Approaching the Market
Once you know more about the target you want to hit, look at the hard facts to see what could potentially produce revenue for you. Write down your top methods for gaining users, driving revenues, and marketing your business. You will still need to pay attention to things like your cost per acquisition, but you will have more ideas on where to begin marketing your products and ideas. Look at China specific social networks or online meeting places where you can begin to market. Make a list of the most highly trafficked sites relevant to you niche, then visit those sites frequently to form a picture of how you will fit into their model.
Business Takes Time
China is growing fast, and Westerners will need to show some willingness to stay and invest in that growth. Therefore, it is important to realize that any company looking to expand into the Eastern market should anticipate an expensive and slow-paced journey. If you do plan to expand into China, it will be important to maintain an open mind about the direction the country is headed in.
Boots on the Ground
Equally important is a strong team that is local to your operations in China. You can visit as much as you want, but it will be expensive for what amounts to micro management. Instead, look for a strong localized team that you can trust to run operations when you’re not around. The chances of your brokering a deal without some Chinese presence are also lower, so having boots on the ground is more practical than simply having someone to manage operations.
China is not an easy market to break into, but many Western businesses are seeking opportunity there. There is an exploding middle class, and plenty of room for upward mobility if you study the markets.
By Jane Brown