Top 10 rules for doing business in China
10 rules for doing business in China
China, the business hub of the world is the dream for many entrepreneur. This market with 10% growth, this billion potential consumers, those 800 million cell phones, the 540 million Internet users and this million of millionaires … offer spectacular opportunities in the world.
However … more than one entrepreneur has failed in this country. Culture, competition, copy, a market that evolves too quickly, these consumers increasingly exacting … all these factors have led to many failures on the part of any enterprise, small, medium and even major.
To do business in China, there are rules. Follow these rules does not guarantee success (it would be too easy) but avoid some errors.
1 / Adapt to China’s market
1 / Adapt to China’s market
Companies have to adapt to China’s market and not contrary. Adjust target consumers and market, this rule is valid for all countries of the world and across all sectors. But in China, many companies are struggling to adapt to Chinese market.
They are, in general, the time to understand the market and customer requirements.
2 / To have a coherent strategy
2 / To have a coherent strategy
Although easier said than done, it is very difficult for a company that establishes itself as a Chinese market to have a coherent strategy, because the coherent of China is not necessarily the same that of the West.
Study the competition:
China is a country super-competitive. Competitors are probably numerous in your area, so it is important to know what they offer, their strengths and weaknesses and how they are perceived by your potential customers.
Positioning is really difficult for many Western societies, because decision makers are often not immersed in the Chinese society and in the area in which the company addresses.
The price positioning is important, you have to know : “which prices for my products in the Chinese market? “It depends on many factors, including competition, company image and quality of product offered.
Chinese professional buyers willing to pay 30% more for a quality foreign but usually not more.
Consumers, meanwhile, are irrational if they are wealthy and looking for the rest of the population.
3 / Be responsive
3 / Be responsive
China is a country that changes all the time and Chinese people are very reactive. Decisions are made quickly and often this is in contrast to our old Europe.
If a company wants to succeed in the Chinese market, it must react quickly to market and competitive developments.
If you want to be reactive, it is a matter of volition !
4 / Keep control of his company, its distribution
4 / Keep control of his company, its distribution
If a company is suffering in China, it will have no problems keeping control of its distribution and its products.
However, if the company is experiencing a rapid success then new problems arise : copy, entry of new competitors low cost and loss of control of part of society.
The Chinese partner may decide to go it alone (eg Danone in China), the sales manager can establish his business and the purchasing manager can with the money of the company to buy a house in Hainan …It happens!
5 / Communicate in Chinese
5 / Communicate in Chinese
I know a lot of divergent opinions. Some people think that speaking English needed more respect towards the Chinese. I do not think so.
The Chinese do not often speak English. Having a brochure or a website in English is often a brain-teaser for them, pushing them to do not like your business.
Have a communication in Chinese for Chinese, is very difficult for a Western society. Usually they will use a translator who will do a literal translation, not suitable for Chinese customers.
Develop a slogan, trademark, visuals and a website request to have a local expert that can give advice and make some suggestions.
And believe me it is not given to everyone.
The classic error is: the translation entrusted to the young Chinese student just graduated and freshly employee who will do his best and get a translation sometimes inconsistent.
The western manager does not read Chinese, or not understanding the subtleties validate the draft without any problems. Even the largest companies, however, accustomed to a marketing quality fall for it.
A French company in the automobile brand named Biaozhi, which means close to Biaozi : bitch in Chinese.
Shangxia (Chinese brand of Hermes) means “to have the heart that goes up comes down” “feel dizzy”.
KFC “we do chicken right” 我们 做鸡 是 对 的 also means “we made prostitution! ”
In China, we use different ways to search for information, Baidu is better than Google, and Weibo better than Facebook. For a person immersed, it is instinctive…For a newcomer, it is much less.