3 Tips for Successfully Starting Business in China

Nowadays many foreign startups have realized the huge market in China and are trying to enter, however, we must also clearly know that the majority of starups even giants like Google and Facebook failed to enter the China market. Therefore, before the tide of entrepreneurship in China, foreign startups should make rational analysis and conduct preliminary research before starting business in China. To help make success a reality, here are 3 important tips for foreign businesses breaking into the China market.

Be Data-driven

Many entrepreneurs will fall into a mistake, believing that a product does well in the domestic market will be successful in the Chinese market too, but this judgment is often based on a lot of assumption about the market, consumers and competitors. We can see after some brand new products or technologies enter the Chinese market, they will be quickly killed or copied by competitors, and die soon. Therefore, foreign entrepreneurs must conduct a comprehensive market and product research, and protect their intellectual property to avoid unnecessary risk in the early stage of you're the business.

Market Size Matters

Before entering the Chinese market, estimate the market size by research data rather than simply by personal judgments. These estimates are normally created by categorizing customers, then applying pricing and elasticity estimates to determine the likely number of buyers in each category. However, these estimates are often anchored to a moving point, such as the current rate of market growth. After a comprehensive and detailed market research, you will better know about your target market and whether your product suits it.

Make Used of Local Resources

There are many small and medium sized service companies in China that play an important role in some vertical areas and provide professional services to their clients. Foreign entrepreneurs can cooperate with them and outsource some of the daily work to these companies. They have a better understanding of the local market and can also use their tools and resources to reach the goals you want. But the quality of service markets in China is hard to ensure, and finding a reliable service provider may take longer than you think. At this time maybe cooperate with a resource-sharing platform such as WTOIP can save your time and effort.

Entering a foreign market can be a daunting task, however, if you stay organized and keep these three important tips in mind, you have a much better chance of succeeding.