Doing Business in China: Selling Into the Chinese Market
Daniel Rosen participates in this exclusive panel discussion about successfully navigating the challenges of selling into the Chinese market, hosted by HSBC and the Washington Business Journal on October 11th in Washington DC.
What is your China strategy?
More than 90% of the world’s top 500 companies are doing business in China. Exports from the United States to China grew 542% during the period from 2000 to 2011. So, if you’re not already doing business in China, you might be wondering why you’re not; and chances are, your competitors are already there.
There are unlimited opportunities for business expansion; however, successfully selling into the Chinese market can be extremely challenging. When selling into the vast Chinese market, you will encounter some of the same issues as when sourcing from China. Most of your sales will likely come through arrangements with Chinese distributors; thus your contractual arrangements will be critical to your success.
In general, foreign companies selling in China are successful and win customers when they offer free things: technology, a superior product, and a higher-end image. Retailers, financial services companies, and consumer product companies are jumping into the market aggressively to expand their businesses. Exporting your products into China is a less risky way for your business to enter the market. The Chinese middle-class population is swiftly growing and buying all sorts of products and financial services that are paving the way for strong selling opportunities.
The Chinese consumer is unique in the world. As you consider selling into the Chinese market, what challenges will you encounter? Should you be using sales arrangements with Chinese distributors? What options exist? How do you protect your proprietary assets? You will have to work really hard to earn their disposable income, but if you’re prepared and get the formula right, the efforts can be exceedingly rewarding.