Lessons on Competing in China with Lele Sang

"I think people usually assume that global companies fail in China because of government intervention... My co-author and I conducted more than 100 interviews with executives and global companies, and we found that, in most cases, that assumption is wrong."

Lele Sang is Globe Fellow at the Wharton School of the University of Pennsylvania and coauthor (with Professor Karl Ulrich) of Winning in China: 8 Stories of Success and Failure in the World’s Largest Economy (Wharton School Press, 2021). She is also a contributor to Harvard Business Review and writes about international business. A formal journalist and editor, She has interviewed world leaders from prime ministers to Fortune 500 company CEOs. In addition to journalism, she had stints at startups and multinational corporations as a marketer in both the United States and China.?

Lele was a visiting scholar at the University of California - Berkeley, Graduate School of Journalism. She holds an MPA degree from the University of Pennsylvania.

Lele recently joined me on the Outthinkers podcast to share her top insights on successful strategies for companies entering the Chinese market, and lessons learned from successful ventures.

Listen to the episode now.

Three conditions necessary to compete in China:

1. Local demand: To enter the Chinese market, foreign products or services must meet local demand. Fortunately, according to Lele, Chinese consumers are open-minded and excited to try new products and services. Striving for product-market fit at the outset ensures that consumers will welcome your new offerings.
2. Access to the market: Competing in China requires an understanding of how to operate legally. Some categories are closed to foreign companies; others require a Chinese partner. To gain access to the market, companies must pick the right area to compete.
3. Competitive advantage: Don't assume that what works in your home market or in other international markets will work in China. For example, it's common practice for companies to localize when entering a foreign market, but when Norwegian Cruise Lines tried changing their decor and activities to match Chinese custom, their business was rejected. It turned out that Chinese consumers wanted the exotic western experience that the European company usually provides.

Listen to the full interview here.

More Resources:

• Visit Lele's personal page.
• Connect on LinkedIn.
• Learn more on the Wharton Faculty Page.