6 Tips For Your Business Expansion To China
China, the most populous country on Earth, is the fastest growing consumer market and soon-to-be economy in the world. As such, business expansion to China presents extremely lucrative opportunities for Australian companies and entrepreneurs alike. But to effectively expand business to China is not as easy as one may think. Ausmate, a professional consulting service on the Chinese market, offers the following six tips to help you prepare and avoid the many potential downfalls that so many businesses succumb to when attempting to expand business to China.
- Be specific and study the market
Do your homework. Find out the products that are currently high in demand and target the suppliers that produce those products. Popular Australian products right now are cosmetics, health supplements and wine, to name a few. Aim for direct engagement with Chinese consumers, research their needs and then deliver a solution.
- Prepare for the red tape
Foreign businesses often underestimate the government’s power and don’t establish relationships with both regional and national governments. Your expansion plans could fail due to a roadblock at the local government level. Ausmate group eliminate this risk by drawing on their connections with government officials in China. Along with their already established business contacts, this offers a significant strategic benefit to Australian clients.
- Adapt or die
Prepare to throw away your Western business practices and be ready to adopt a new way of doing business. What worked for your business in Australia will most likely not work in China. Get advice on Chinese business practice from experts before you venture out. Once in China, the key is to learn from the new culture and remain humble. It will certainly help to have contacts who can match you up with the right business, suppliers, and manufacturers.
- Communication is the key
We live in a digital world but it is so important that when meeting potential business partners it’s done face to face. Get a sense of them, as they will you. Austmate not only matches you with the right business but provide direct meetings with bulk-buyers with in-meeting interpretation. This service is integral to establishing, building and maintaining relationships, which leads us to our next tip.
- Build and maintain business relationships
The Chinese have a word, Guanxi, which roughly translates to “relationship”. Guanxi plays a major role in Chinese business. Finding a supply source or manufacturer and building a solid working relationship is paramount to succeed in expanding sales to China. Australian businesses will need to build strong relationships with local suppliers. Where Ausmate is ahead of the game is their strategic partnership with Alibaba to open up the largest B2B in China to Australian suppliers.
- There are many China’s
China is not one size fits all. Each region in China is like its own country, with differences in their business legislation, as well as culture and dialects. This can be overwhelming and take a lot of time and research to get your head around. Researching the Chinese market as a whole is not efficient. You need someone with plenty of market knowledge and experience to guide you and your business through the vast landscape. Luckily, Ausmate group have already done the heavy lifting for you. And with 6 sub-companies throughout China (Northern China, 2 in Southern China, 2 in Western China and Beijing), Ausmate is able to monitor your products bilaterally.
In conclusion, China is a different beast. As such, before entering the market and expanding sales to China you should do thorough research or enlist experienced Chinese market specialists to help you. It will be worth its weight in gold.