Guide to marketing products in China: Top 7 “Fastest” and “Efficient” ways:
1. Understand Local Persons and Business Practices
Like many other countries around the world, Chinese own distinct cultural practices make it truly different and unique from the rest of the world. Culture goes beyond getting used to the different types of foods in China. Understanding their business culture is VERY crucial for your success.
That means you need to understand how the people of China think about their local business practices so that you will engage faster and form better links with them. In order to accustom to China’s cultural practices, original organizational business practices MUST able to adapt. Hence, adaptability and flexibility is the key for your business to be successful in China.
2. Find a Local Party
One of the fastest and MOST efficient ways for you to figure out how the local people feel about a certain product would be to “search for a local party” that can help support you as they will be able to communicate to the locals better and also have a better understanding of the Chinese culture too. This allows you to know what kinds of products people will buy.
For a more complete understanding, searching online forums, local articles and publications is beneficial too. A market analysis of the different groups of people, education status, purchasing power and age for example, will allow you to estimate how much each group will pay and target each more specifically. Besides allowing you to decide what types of products will sell, it will also help in deciding the means of advertising. This could be either through TV commercials or print media.
3. Form Good Relationships with the Chinese Government
Chinese government isn’t VERY easy to communicate with too. There is more to interacting with the legal institutes than stated in the open. Many major foreign investors and companies often get confused with the laws and how the administrative procedures are carried out here in China due to the “bureaucratic style and policy of Chinese government.”
That is why it’s BETTER to find a “local party” that can handle all of your paperwork, finance, taxes or deals to minimize any delays and confusions with the Chinese government and bank. This includes decreasing the approval time for registering for different passes or licensing. It also ensure a smooth banking process in the future. The reason is simple: Locals are MORE likely to be familiar with the government procedures, what kinds of documents are needed and policies.
Plus, if they have a VERY good relationship with the concerned authorities, things will be MUCH smoother and issues will settle even faster. It will also be a form of protection of rights in the future as all legal matters would have been handled correctly and the two entities will have started off in agreement. Have a GOOD grasp of Chinese culture
Most foreign companies often seem to have problems finding a “suitable” Chinese partners as they DO NOT have the required network present in China. Having physical offices, property or estates in the country alone is not enough, foreign companies have to see themselves as being housed together with Chinese firms and learn how to live in harmony with them. In addition, if the foreign investors have HARD time understanding its culture, conflicts will likely arise when decision making collide.
This makes it difficult for contracts to be made and collaborative projects to be carried out.Hence, it’s imperative for foreign companies to get a good grasp of Chinese culture before investing in China. Success is only reserved for the party that can do so.
4. Establish a Local Presence
Foreign companies who are already enjoying success in China hold on to and practice a formula that is widely used. They establish a local representative office and form a STRONG domestic private sector partner who has access to important information and contacts in their industry.
5. Set up a Joint Venture
Another way of successfully start a business in China is to set up a joint venture. For a joint venture to be effective, of course, selection of correct trade partner is essential. Although finding the “right” partner may require MORE time, experience, energy, and patience in researching on different firms’ portfolio, nonetheless, these efforts are worth the effort as choosing a WRONG partner will definitely guarantees failure.
6. Incorporate Local Expertise into Management
In order to have an access to good source of information, right network of people to work with, and learning about social as well as cultural values that people of China take pride in, expertise and talent in Chinese market is very “essential.” In order to do so while retaining control over the privacy of the company, including locals as shareholders or part of the management will aid in the growth of the firm in China.
7. Form “Guanxi” (relationship) with the locals
Relationship is an important aspect in achieving success in business in China. Good relationships are the building blocks for development and growth. That means, top management must form and nurture close relationships with their local peers. Not only this helps them understand the Chinese market, but also creates an atmosphere for the largest form of help in times of trouble or danger. Building STRONG relationships with business partners will help alleviate operational and strategic risks. If you want to start a business in china, then we can help make the process simple. With years of experience and plenty of connections, we make it easy.