How to Be Competitive in The Chinese Market
The China economy has continued to grow and expand compared to other world economies. Reforms, market principles and policies that the country made over 40 years ago have been very successful and has positioned the economy for an amazing growth for years to come.
China in the past years has become the base for world class companies like Apple, Samsung, KFC, McDonald’s, Sony, etc. to churn out products globally. Investors have continued their investments in the China economy. Predictions show that around the middle of the century, China will be 15 to 20% of the world population. China has grown at about 9.5% on average, every year for 40 years which means that the Chinese economy doubles in size every 8 years, making China the second largest economy in the world. Statistics and research shows that the Chinese economy will overtake America as the largest economy in the world by 2027.
We’re getting to that time where changes in the economy of China will mean changes in the economy of the world
yes, it’s that huge. In fact, according to recent online polls, a whopping 88% of the people around the world voted positively for the believe that there will be an economic slowdown globally if China experiences an economy slowdown.
So China has proven to be the road to a sustainable growth. Therefore, if you have a vision of world standard to penetrate and succeed in the global market, one of your targets should be to succeed in the China market. Here are 5 ways to be competitive in the China Market.
1. Host a website in China!
“In this information age, there is only going to be two kinds of business people those who are doing business online and those who are not doing business at all!” Bill Gates. Having a website hosted in China is perhaps first essential step to break into (and ultimately succeed) in China. An e-commerce website where prices and products could be purchased and delivered effectively! Your website should basically do three things well: sell your products, generate more leads, and establish the trust of visitors.
These three things should be incorporated in the mission statement on the website. This sets the tone of the website. What you want is a beautiful e-commerce website where prices are competitive, products can be easily purchased and delivered pronto!
Ensure you price correctly. Chinese locals quickly compare prices with top ecommerce sites like Taoboa, Jumei, JD, and Tmall.com. Even though multinationals try to keep premium price for premium products, enough evidence either have to be given that the value outweigh the price or they have to reduce price.
2. Understand the Chinese Market- Continue to Study the Trends in the China Market
“Everyone is learning about how they need to work with changing social attitudes and continuous aspirational trade-ups, even the Chinese themselves.”
McDonald’s. The Chinese market is changing quickly and many of the companies are learning to keep up. Success comes only to those who focus on improving the lives of the Chinese customers despite the changes. Take a cue from Unilever’s detergent Omo, who went into the market with a fully researched understanding of customer behaviours. It found that in many markets, a family would use three buckets to wash clothes but Chinese consumers used five buckets for their laundry and Omo pitched their brand accordingly.
3. Find a right Local partner- Build an Effective Team
Very competitive businesses in the China market built their businesses around the locals
right joint venture partners and the best Chinese talents. KFC, Apple, Starbucks, Adidas, and other thriving companies in China reveal that hiring and training the best local talent helps them understand their customers better. How to get the right partners? Perhaps the best way to locate the right partners and talents is through referrals. Leverage on your relationships to get the best people. That settles the trust issues. “If you want to hire the right people, look for three things: integrity, intelligence and competence. If they don’t have the first, the other two will kill you” — Warren Buffet.
4. Understand the Legal System- Play by the rules!
Succeeding in the Chinese market invariably means working with the Chinese government. This is where having local partners is very critical. One of their main jobs is that they will be there to help you play by the rules of the legal system in China. Technically speaking, the government has to be your local partner as well. The government is usually quite opened to partnership as well because your partnership will also provide the government access to your country. The state heavily regulates foreign investment; so, ensure you have the approval of the authorities for your business.
5. Diligence- Focus on growth via hardwork rather than shortcuts
“The price of success is hard work” — Vince Lombardi. While a few strategies and smartness can cause amazing results, being competitive really just boils down to hard work. The strategies will only be sustained by the continuous growth and development of the members of the organization via hard work. I tell people, “Your results grow to the extent you do!”. Nothing succeeds like hard work.