If you want to do business in China, first you need consider some cultural and logistical aspects. If you intend to sell products in China or start partnerships with Chinese businesses, you must necessarily model your strategies based on Chinese cultural and logistics aspects which can be differ from the ones we’re used to. We must learn to recognize these differences and adapt ourself to them in order to be successful in the Chinese market.
China has now reached a population that is double that of the entire European continent. Cities like Shanghai have over 26 million inhabitants, with increasingly higher purchasing power and disposable income: you need to keep in mind that you’re going to face a reality that is way much bigger to the one you’re used to.
When doing business, you always have to prove to your customers and suppliers that you don’t intend to use them to your advantage and vanish with the profits in your pocket. And this is even more true when doing business in China. Here, customers and suppliers are rather wary of foreigners.
An effective strategy to enter into the Chinese market is to work with people who understand the vision and values that have been defined for your company. This will help show that you are intent on creating lasting partnerships that benefit both parties.
Another aspect not to be overlooked is the linguistic one: given the great cultural and linguistic differences of this country, those who decide to undertake a commercial activity on the spot will have to equip themselves in the best possible way in this sense, in order not to have any kind of problem. Our suggestion is to immediately hire a Chinese speaking representative from mainland china.
In this regard, another suggestion is to looking for local partners which can help you with any logistic or cultural problems.
The Chinese spend their time online more than all other peoples: having an important digital presence is essential to enter the Chinese market. Understanding Chinese social media like WeChat, curating your site, and learning about e-commerce platforms like Taobao is essential.
Last but not least, you need to understand that in China, government agencies control everything. And, very often, local authorities play a more incisive role than those of the central government. For this reason, it is essential to study the political landscape of the area in which you want to operate and learn how to move in this strange context in which centralization and decentralization coexist and which exerts a great influence on every sector of the economy.
However, these are just some guidelines to enter into the Chinese market but they are not infallible: indeed, there is not a right strategy but everything can change from case to case.