Four Facts Every Businessman Should Know About China- Finding empowerment through strategic compromise

With its new and enticing incentives for innovative foreign investors, the world’s fastest growing and second-largest economy is proving irresistible for global visionaries. Here’s what newbie market-entrants need to know when preparing for the diverse and complex business landscape of China.

No option but to adapt

While China is an undeniably attractive start-up economy with a young multi-talented workforce, advanced leaps in technology, and quality-driven business processes, it’s important for entrepreneurs and investors to look past the corporate glamour and identify potential pitfalls to avoid. ?For instance, even if you’re setting up operations in an affluent tech hub like Hangzhou sporting foreign trade value of around 90 billion USD, it’s essential to evaluate factors such as customer buying patterns, competitor strengths, reliable distribution networks, and entry barriers, while also assessing your ability to localize your marketing mix in order to satisfy unique expectations. ?Multinationals like Adidas and Zara, for example, had to tailor their strategies according to the quality-driven consumer market in terms of Asian sizing and styling requirements, as well as launch empowering campaigns for fast-growing demographics.

Relationships transcend business

Due to the increasingly pro-investment policies introduced by the government, it’s no longer trying for foreign enterprises to obtain funding and find resourceful partners. However, if you want to waste no time in getting into the good books of local counterparts, it’s essential to display cultural sensitivity and respect their unique business process. For instance, the initial meetings are all about establishing a strong rapport where your Chinese associates are likely to gauge your competence and trustworthiness. In a culture where prestige and hospitality are a package deal, it’s vital to observe the local meeting etiquettes and select a sophisticated venue for formal and informal gatherings.?For instance, if you’re looking for a Hangzhou apartment for rent, select one with a classy ambiance and business-savvy amenities such as the Citadines Intime City Hangzhou.

Tech-driven innovation is essential

The downfall of many foreign start-ups lies in underestimating the relentless nature of Chinese competition in a culture where it’s considered a creative art to replicate the product of another brand with the tiniest of embellishments. While this is not viewed as “copying” in this context, it forces new entrants to be proactive and have new ideas up their sleeve in case their niche is suddenly flooded by similar offerings! While quality products and innovative business models are essential for long-term competitiveness, foreign businesses have to eat a slice of humble pie and pick up tips from Chinese digital firms to boost market share in a technology-intensive economy. For instance, while 600 million consumers are active on online platforms in China, traditional email is almost never used for corporate communications; rather, WeChat messenger is the government-endorsed channel for all-in-one virtual integration.

Local experts are a lifebuoy

Imposing Western logic on the Chinese market dynamic is a major pitfall that can happen quite unconsciously without the guidance of local professionals. According to the Academy of Management Discoveries, Western digital firms could not sustain operations in China due to imposing global business frameworks and technologies on the local market while failing to tailor their strategies to local market dynamics. Therefore, whether it’s building a network of synergized partnerships, creating an effective employee management system, or understanding local IP protection processes, enlisting a market-savvy domestic specialist is a fail-safe manoeuvre. To better focus on developing and developing customized products and staying innovative, it’s best for foreign business owners to outsource services such as HR management, web development, administrative tasks, shipping, and logistics.