4 tips for doing business in China
1.Recognize the importance of relationships
The Chinese word “guanxi” translates to “relationships”, and refers to a network of personal connections that (foreign) businesses will need to successfully establish themselves in China. If your company is hoping to enter the Chinese market it is crucial to establish long lasting relationships as they prove to be a huge asset.
2.Think beyond Beijing
As we have mentioned in a previous blog article, businesses shouldn’t limit themselves to first-tier cities such as Beijing or Shanghai. China has over 160 cities with more than 1 million people living in them, and more and more cities are appearing on the map every year. While they may be less well known, they have the potential to offer the same benefits as first-tier cities.
3.Be mindful when it comes to price sensitivity
Price always pays an important role in purchasing decisions. When entering into the Chinese market it is important you take into consideration that the average Chinese income is lower than a U.S. income so you might need to adjust the price of your products.
4.Embrace local social media platforms
China has over 500 million Internet users, and this is a great way to target consumers online. However, the government has banned traditional U.S. social media outlets like Facebook, and other networks such as Sina Weibo have become very popular.