There are many reasons why you are probably not considering exporting to China, but whatever they are, we’d like to get you feeling confident and excited about tapping into this large and vibrant market.
Here are 5 tips to export success from Jonathan Smith, our local China-Britain Business Council adviser.
1. Understand What Opportunities There Are
Not only is China one of the world’s fastest growing economies, but it is also one of the fastest changing societies. China’s shift from an investment to consumption oriented growth model and the rise of the urban middle class have created myriad opportunities for foreign companies across many sectors.
A basic understanding of the macro trends and government policies affecting business in China along with the prospects of individual sectors will help any budding exporter understand where the opportunities lie in this huge country.
2. Target Specific Cities
It’s well known that China is a big country with lots of people. However, that does not mean there is a single market of over one billion people waiting to buy your product. Even large multinationals will first target specific cities in China before expanding.
Previously, foreign companies would tend to enter the China market via one of the first tier cities (Beijing, Shanghai, Guangzhou and Shenzhen) due to their higher levels of development and more internationalised consumer tastes. However, now China has developed to the extent that second and third tier cities also represent viable points of entry and untapped opportunities for foreign companies.
3. Protect Your IP
Many foreign companies feel that there is no concept of IP in China and so there is no point in getting IP protection. However, this view is wrong and may lead to expensive mistakes. China operates a ‘first to file’ system, meaning that it is vital that foreign companies file for IP protection as soon as they decide to enter the China market in order to prevent an entrepreneurial local from becoming the owner of your IP in China.
If you are caught out, this so called ‘trademark squatting’ will at best frustrate your and delay your entry into China and may well cost you money.
4. Invest In Relationships
Chinese people like to do business with people they trust and regard as friends. Western businesspeople can often get frustrated with the amount of time Chinese partners ‘waste’ on non-business related conversations and activities. But from the Chinese perspective this ‘wasted time’ is a vital part of the process of building trust between business partners.
Being able to say a few basic words in Chinese and have some understanding of Chinese culture will certainly be appreciated by all Chinese people that you come into contact with.
5. Get Advice And Support
China is a challenging market to succeed in, no matter the size of your company. Access to advice and support is vital for everyone from novice exporters to large multinationals. Despite China being a complicated and diverse market, there is no reason to fall into the common pitfalls that exist.
Enlisting the help of someone with specialist market knowledge is not difficult and will give you the best chance of avoiding common mistakes and join the ever growing ranks of China export success stories.
China-Britain Business Council (CBBC) can help you understand where the opportunities lie for your company, point you towards China focussed legal advice and advice you on Chinese business culture.
With two specialist advisers based in the South West, 10 offices in the UK, 13 in China and 130 staff all dedicated to helping your business, CBBC is perfectly positioned to help you along your journey into China.
If you would like to get in contact with CBBC, please ring the International Trade Centre in the South West on 01275 370944.
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