There is probably a wide range of reasons why you haven’t considered exporting to China. However, whatever they are, we want to get you excited and confident about tapping into this large and vibrant market. China-Britain Business Council adviser, Jonathan Smith, offers five tips for export success.
Chinese society is undergoing rapid change, not only economically but also socially. Foreign companies can take advantage of many opportunities with China’s shift from investment-driven growth to consumption-driven growth. Having a basic understanding of China’s macroeconomic trends, government regulations, and prospects in each sector will help budding exporters identify where the business opportunities are in this vast country.
China is known for having many people and being a large country. The fact that there are over one billion people in this world does not mean your bottle PET preform mould product has an enormous market. Most multinationals will target specific Chinese cities before expanding internationally. Foreign companies would historically enter the China market via Beijing, Shanghai, Guangzhou, or Shenzhen because of their higher levels of development and more internationalized consumer needs. Today, China has developed so much that second and third-tier cities have become potentially lucrative points of entry and untapped opportunities for foreign companies.
Many foreign companies believe China has no concept of intellectual property, which makes getting IP protection pointless. Nevertheless, this is a mistake and may result in costly errors. Foreign companies entering the Chinese market must obtain IP protection as soon as possible, as the country operates a first-to-file system, which makes it impossible for a local entrepreneur to claim your IP. It is possible that you might lose money if you are caught out by this so-called ‘trademark squatting’. At the very least, it will frustrate you and delay entry into China.
Businesses in China are often conducted with people who are trusted and regarded as friends. Sometimes, Western businesspeople are frustrated with their Chinese counterparts’ tendency to spend too much time on non-business-related discussions and activities. Chinese business partners view this ‘wasted time’ as a vital component of their process of building trust. If you know a few basic words in Chinese and know a little about their culture, you will certainly be appreciated by the people of China.
The Chinese market can be challenging for companies of all sizes. All exporters, especially novices, should be able to access advice and support. It is absolutely unnecessary to fall into the common pitfalls that exist in China, despite it being a complex and diverse market. You’ll have a much better chance of avoiding mistakes and becoming one of the many successful China exporters if you hire a professional.
About Author: Steven Cheng, the founder of Topworks Plastic Mold, a China injection molding company with the most complete services, from design to production. Topworks provides customers with a one-stop service for Polycarbonate injection molding and ABS injection molding. The company’s professional team has excellent product knowledge of the plastics industry, which enables it to provide customers with quick responses and high-quality service.