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How to win over Chinese audience

How to win the market?

Establishing a multinational company is a dream for every businessman. All businessmen would definitely look for developing their business into global scale, following the likes of McDonald, Coca Cola, or Starbucks. Unfortunately, being a cross border business is not that easy, or at least that’s what happen in China.

Google’s Exit in China

Google is one of the largest companies in the world today. It has world-class resources with excellent business model, which have brought the brand to global scale. However, it turned all these supporting factors are not enough to bring Google surviving in Chinese market, even though the Chinese market has been familiar with several business models including O2O and P2P.

Entering the market indeed has been really tough for foreign companies in China, especially those businesses with online services. Nonetheless, is there really no chance to flourish in the market of China? Here is the outcome of interview with Founder of Wisemont Capital Li Jun on this matter.

Original Domestic Field

ZTE and Huawei have been praised for having years of independent research, with immense technical strengths. These strengths are supported by supporting national government legislation with years of establishment. It is indeed easy to strive in the market when you have resources, but if a company of Google calibre turned out failing to survive in the Chinese market, how can startups do so?

Crossing border may seem to be next to impossible for startups, especially for those who seek to survive the competition in the first place. It would be essential for these startups to be able to find their own place in the local supply chain. But that alone does not guarantee the company’s survivability in China; it is much more complicated than that.

Being Local is the Key

When a business intends on entering the Chinese industry, the questions would be when to enter and how. The next thing to be done would be to make use of local technologies that currently become the trend within the local industry. In this regard, foreign industries shall not be worried because the Chinese businesses have now considered to utilise long-term technological development.

However, this could also become the very barrier for foreign companies to survive in the Chinese market. This occurred to one of the current hottest startups in the world, Uber. Uber’s owner Travis Kalanick announced that Uber’s operations in China has been acquired by local Didi, an Uber-like service with local technology and resources. This shows us that having the most advanced technology alone is not enough for a business to flourish in Chinese market. One needs to have in-depth resources and knowledge, as well as connection with the local industry.

How to Win the Chinese Audience

It is indeed really hard to attract the attention of local audience in China, particularly if we are exposed to a strict competition with local players in the industry. However, it is not impossible to do so, as long as the business is willing to adapt to the local trends and business model. As long as this could be done, enjoying huge profit in the vast Chinese market is no longer a dream.

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