Every business should learn about the Chinese market. With a massive population of about 1.3 billion, it is the world’s most populated nation and, as such, holds great potential for effecting the world’s economies. The Chinese economy itself is said to be larger than the US and European markets combined. From manufacturing goods in China at a fraction of the price it might cost in Western countries to entering the Chinese market with your business, there are a wide range of possibilities where the Chinese market can extend or enhance your business dealings.
Entering The Chinese Market
While large companies find it somewhat easier to enter the Chinese market, smaller companies tend to have a much harder time. They tend to experience problems with getting a business license, which can take many months of having to talk to the right people and cutting through the red tape. However, some new companies have popped up whose entire business is based upon helping foreign companies enter the Chinese market. These companies help do the research and lay the groundwork before the client takes the big step of moving into China. A mistake that people tend to make a lot is that China is a single entity, when in fact it is a vastly varied country with over 33 provinces, each with it’s own unique attributes. In addition, there are over 100 cities in China that have over 1 million inhabitants, which cities do you enter and how do you market to them? The research needed is quite vast in order for you to make good business decisions.
One of the biggest markets in China is Internet users. It is estimated that Chinese Internet users spend almost 2 billion hours online each week. Compare that with their US counterparts, which use the Internet almost 129 million hours each week. It is also estimated that nearly 800,000 new users jump online in China every single week. The Chinese Internet market is growing by leaps and bounds and shows no signs of slowing down. This is one of the best markets for foreign companies to enter. Many US Internet companies have already jumped into the Chinese market to take advantage of it’s exploding growth, including eBay, Amazon and Yahoo, among others. In addition, many Internet search engines offer a Chinese language version of their search engine.
Companies and CEO’s who have already entered the Chinese market successfully say you must be especially savvy when making deals and communicating with Chinese business people. Like any other country, there are good people but there are also crooks. You need to be more patient and also vigilant in your business dealings. Check out any potential partners thoroughly. Just because a Chinese business person speaks perfect English, doesn’t mean they are a good business person. Due to this, it’s a good idea for you to learn Chinese or have a trusted translator on hand at all times during your Chinese dealings.
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