How to successfully infiltrate the Chinese market

Having been dubbed an economic world superpower with a population of 1.4 billion, a booming eCommerce market, combined with their ability to substantially lower the cost of supply and heighten the demand for an array of retail products around the world; it’s no surprise numerous local business entities want to capitalise on this financial goldmine of a country.

There is a strong demand for international products in China, especially Australian products due to the renowned authenticity of local Australian ingredients and high manufacturing standards held within Australia which is thoroughly respected and sought after by Chinese suppliers.

Understanding the Chinese culture and adapting your business accordingly:

Unlike other cultures the Chinese like to prolong the decision making process to ensure they have complete satisfaction with their final business decision. It’s unrealistic to expect you can go in with a business plan and have this approved within 24hrs. The Chinese like to conduct business decisions with respect and longevity. They have traditions that you must be across in relation to most aspects of business interactions; including business card giving, pricing a product, and even product packaging.

It’s important to always get in the mind of the Chinese consumer to your best ability. This doesn’t necessarily mean you need to completely overhaul your product or service. However, if your business is in it’s infancy, it’s about developing branding initially that is easily transferable into the Chinese market which can be achieved by doing your market research prior. Alternatively, if you already have a well-established brand you need to make tweaks to existing products or services within your scope that specifically correlate with emerging trends currently visible within the Chinese market.

Staying well versed on possible business risks:

It’s important that any foreign companies looking to infiltrate the Chinese business world; spend time investigating the market, obtain professional advice and conduct thorough due diligence before establishing any form of business relationship. Doing business in China – carries certain risks that Australian companies might not be aware of. These include:

●      commercial fraud

●      breaches of contract

●      intellectual property infringement and theft

●      bullying, intimidation and threats to physical safety

●      restrictions on movement

●      criminal charges for engaging in activities that may not constitute crimes under Australian law.

Transitioning into a new market is not easy and it’s vital to sought reliable expertise from professionals who have experience in infiltrating the market and who understand and can predict emerging trends to sustain longevity in your business success. All foreign companies should feel empowered to capitalise on a market that can deliver so much in return for your business financially. Establishing a successful international presence for your business will keep it financially viable and exposed for far longer than if you are only domestically recognised.