While China is a popular destination for business ventures, and rightly so, penetrating the Chinese market is a complex operation. The core elements to pursue to succeed in China are not just bound to marketing or managing distributions. It is not enough to establish a brand or to open your own company in China. Nor is it enough to ‘know your way around the global market’. The key to launching a successful business in China lies within a comprehensive management plan that strictly tackles each of the many expected issues.
That in itself sounds almost impossible to achieve. Building a thorough operation of that magnitude involves strategic, top-to-bottom management which is hard to execute. It is especially hard to manage for smaller companies, which may not have enough resources to achieve this kind of elaborated operation independently. Yet, trying to expand one’s business into China without comprehensive management can turn into a futile attempt. Thus, it is important to understand the virtue of being well prepared before moving forward.
What Should your Comprehensive Plan Include?
E-commerce Platform Operations:
China’s E-commerce market size is estimated to be growing at an annual rate of 22.5% over the past few years, making a total market size of $1.8 trillion. In fact, half of the world’s E-commerce sales occur in China alone. The Chinese government quickly noticed the growing trend and set new rules and regulations regarding the E-commerce market. Foreign companies would have to navigate government policies, as many of them are linked to CBEC (Cross Border E-commerce). It goes without saying, then, that an E-commerce platform operation is needed for that particular task.
Intellectual Property Registration:
Although China did improve in recent years on intellectual property rights, foreign companies still struggle with that issue. One IP-related challenge that foreign companies would have to encounter lies with the many local innovation policies. That alone forces many foreign firms to conduct specialized R&D to tackle these required policies and to ensure that their IP rights remain.
Registering a company in China requires many steps, from applying for a business license to registering at the Tax Bureau. There is also a whole array of documents that you must provide with the registering process; a task that could be tiring and overwhelming in itself. Along with the Bureaucratic aspect, there is a need to identify a company structure that best aligns with your expansion strategy and long-term development plans in doing business in China. With the help of a professional agency that could easily manage all of the above, you can begin the journey of expanding your company on the right foot.
Building a distribution strategy for exporting your companies’ products in China has to be done right. A lack of understanding of the distributional landscape could very quickly lead to a failed distribution policy, one that would sabotage your expansion plans. It is crucial to understand the unique challenges in entering the Chinese market and know how best to avoid them. Finding the right channels of distribution for your company and product is the key to a profitable expansion. A distribution strategy is incredibly important, thus building it should be done so by an expert who understands the Chinese market first-hand.
The Maneuver of Online Marketing:
Chinese consumers’ internet behavior differs from that of the West. One must recognize the ‘unspoken rules’ on which online marketing in China is built and understand how to maneuver them to their product’s advantage. Facebook and Google are not sites one should rely on in China. Instead, WeChat, Weibo, and Tmall are some acceptable social platforms to use for your marketing strategy. Other than that, the use of Chinese influencers and Internet celebrities (Wanghong) to promote your brand is also something to consider, as young Chinese consumers tend to rely on their influencer’s opinions the most. All of these different unique strategies could only be achievable with an expert’s help with a deep understanding of how online marketing in China works.
Do Business in China – How We Can Help?
It all comes down to finding a skilled and professional operational management agency. An agency with the proper tools and experience to walk your company through every step as you expand your business into China. It is indeed a complicated service operation, as it includes many different areas of expertise; thus, it is of utmost importance to find an operation consultant you can trust. Finding the proper operation management consulting agency is the key to successfully entering the Chinese market and profiting from its numerous advantages.
Xinergy Global prides itself in solving problems and avoiding problems in advance. Xinergy has the proper comprehensive management skills to tackle all the different services mentioned above and allow a swift, trouble-free entry to the Chinese market for its customers. With a team of expertise, years of experience, and vast and profound knowledge of the Chinese trade world, Xinergy Global can be the secret to your successful business in China. Contact us today for more information about our services, tailor-made solutions, and more.