How To Win in China
Even with the uncertainties created by COVID-19, China is still a market with over 400 plus millions middle class consumers. Global companies still need to figure out how to create sustainable competitive advantages and win in this fiercely competitive and dynamic market. I would like to pose a set of hypotheses and see if you agree or disagree if you have a global business in China. I understand there is no one-size-fits-all approach and generalization can be dangerous. In addition, it is too early to tell how the COVID-19 will transform the global supply chain which will undoubtably have impact on business strategy in China. I would love to see you provide actual cases or examples to support or dispute the hypotheses.
- You are more likely to win with new business model than technology breakthrough
- You are more likely to win with innovation than invention
- You are more likely to win with behavior change than product change
- You are more likely to win with talent than just focusing on IP protection
- You are more likely to win with brand name than just cost advantage
- You are more likely to win with online platform than brick and mortar platform
- You are more likely to win with speed than perfection
- You are more likely to win when your priorities are aligned with China priorities than “just good for my business”
- You are more likely to win when your business is localized than a foreign company in China
- You are more likely to win with a distinct China strategy than with a global strategy implemented in China
If everything fails, you can always find something in the field of kids education where every Chinese family is always willing to pay. Thank you for sharing your constructive thoughts and comments.
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Obviously I can only speak to my own experiences but I have seen that localized businesses value social well-being and interpersonal relationships centered on mutual respect over profits. ?Rarely have I heard any criticisms about Chinese government and/or business culture rooted in fact or personal experience. ?I would advise those who criticize to “don’t knock it until you try it.” ? Thank you for the theories but I do think they are too generalized to answer specifically, winning in China has to be understood in a broader context than just profits. ?Profits are a result of good business relationships and social well-being.
Digital Marketing Manager at Dipraz outsourcing platform
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When the Chinese begin to pay a license fee and residuals to partners from other countries and their companies, then they not only benefit with access to new innovations and access to outside capital, but they get into the profitable habit of protecting and nurturing the golden geese and their golden eggs. This is also a practice America and Europe should utiltize to keep the flow of innovation and capital flowing from continent to continent. Countries can make items designed by other countries, but they need to pay for the use of the ideas, not take the idea, and leave their international business partners in a lurch.
Retired
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