As per China Internet Watch, a new report showed that the purchasing power of Chinese customers is predicted to rise by around 50 % to $6.5 trillion by the end of 2020. Global companies have started to acknowledge that the Chinese market is an excellent opportunity for those seeking to expand their business due to the low development of western economies.
Below is the plan to overcome the difficulties, while entering in the Chinese market (Robbins, et al., 2013):
1. Local language and cultural understandings
China represents political, traditional, and business cultures with their different attributes and uniqueness.
We suggest you should have at least one member who holds a good enough awareness of both Chinese and foreign cultures to manage sensitive business discussions and understanding of the Chinese language in your group, as it will help you to sell your product (Longenecker, et al., 2009).
2. Discover the right partner and develop ties with local businesses
If you move into the Chinese markets, you will ultimately compete with several new firms. By collaborating actively with them, it will allow you to discover your customers and making the business in the Chinese market smoother.
3. Perform due diligence and sort out legal, tax, and finance
Despite initiatives by the Chinese government to simplify bureaucracy and decrease red tape, global companies continue to report about regulatory obstacles that block their development plans in China.
Analyze the details before you get started, and make assured you know what you require to do.
4. Develop a supply chain strategy and a budget
Chinese distributors usually look for immediate and significant profits when brands like Swisse want to establish their Business in the medium-long term. Local partners you believe can support you obtain the quality distribution networks.
Swisse should spend to form a healthy bond with distributors since “guanxi” (relationship) is a key to business culture in China.
5. Make sure your product and organization are ready and set a fabulous team
If the appropriate product is rolling out in the right place and at the right time, success can be almost assured. If you are aware of your recruitments, you can utilize their experience to meet the objectives of Swisse.
Longenecker, J. G., Donlevy, L. B., Calvert, V. A. C., Moore, C. W., Petty, J. W., & Palich, L. E. (2009). Small Business Management. Robbins, S., Cenzo, D. D., Coulter, M., & Woods, M. (2013). Management: the Essentials. United Kingdom: Pearson Higher Education AU.
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