What not to do for Foreign Companies Looking to Enter into China

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china shopping mall 2

China is a market that many foreign companies are looking to invest into. The online shopping sector alone is developing to the point that many foreign companies look at is as though they are not doing their job to their company unless they can find a place among the many that sell to Chinese consumers. The Chinese market is much different than the selling market in the United States or even in Europe. Many European and US businesses are expanding their reach into China, but are they doing this in a way that is going to help them succeed?

Every day in China new business enter, and every day in China there are just as many businesses who are packing up their bags to leave because they have failed. There are several aspects to consider when looking to enter into the Chinese market. Through considering these aspects, a company can help themselves to succeed.

Mobile: This is where it is at

This cannot be stressed enough, when entering into the Chinese market, every foreign company needs to have a mobile platform that they are going to advertise o, as well as connect with consumers. Mobile is much bigger in China than in other parts of the world, as around 80% of Chinese consumers are utilizing mobile to connect. Therefore, whatever you may be used to in your home country, forget it and remember that mobile is where it is at.

Learn more about the mobile world in China here

Foreign Companies: Online and Offline

What is one of the biggest obstacles for foreign companies entering into China for the first time is developing a brand and an image that Chinese people are going to remember. Chinese consumers are not eager to try out a new brand that they cannot physical see first. This is why many foreign companies fail when they enter China. Just because China is known for its online shopping, does not mean that you should not consider the offline image of your company as well. Try out a few retail stores if you can, to start bolstering your image, and you will see more success for taking this route.

See how foreign companies were successful on the biggest shopping day of the year, Singles Day , in China here

Localize, Localize, Localize

It cannot be said enough to foreign companies. Sadly, many companies still do not think that this applies to them. Instead, they go into China, with no changes to their product or marketing plan. The idea that works for a consumer in the United States will transfer to work for consumers in another country is dangerous thinking. This type of thinking will ensure that your foreign company does not succeed in China.

It is possible for foreign companies to make it in China, as there are those companies who do this every day. However, in order to truly succeed, you need to know your consumer base, what they want, and what works in China to see results.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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