Not Made In China

Launching a product in your home country, the U.S. for example, is hard enough but at least you know what to expect from the market. Introducing your product or service in the Asian market is another prospect entirely. Particularly if it’s China.

According to China-Window.com the Chinese generally deal with foreign trade and businesses by international rules but each area and person has different customs and habits which need to be honored and acknowledged.

They recommend a few items of note:

• Know what you’re getting into. Research is key. Investigate their economy and trends. Don’t just assume that your product will work there simply because it worked here. The U.S. may want your widget but China might not. Before you run the risk, do the legwork.
• Learn the culture. Is the area you want to enter a female-centric society? Perhaps it’s more liberal with single people and teens. Does your product fit or would a more rural area be in order? Market research is essential in your marketing process. Lest you end up like EBay, Yahoo, Google, Facebook, MySpace, Twitter – all huge U.S. companies that were unable to penetrate the Great Firewall of China.
• Understand the currency. That includes but is not limited to the exchange rate, payment terms, required legal return policies, shipping, quality issues, taxes, etc. You could end up losing money if you don’t understand legally required taxes or return policies. Especially if the local or state government has a lifetime return guarantee or something that could come back to bite you down the road.
• Grasp the complex nature of Chinese business relationships. The Chinese in general highly value a good longstanding relationship. They are more trustful of a business that will make them money in the long-term than in a flash-in-the-pan that will yield high profits but quick burnout.

Entering a global market takes time, money, and a lot of patience. Just Google “U.S. companies that failed in China” and you will see the results.

It would seem that the Chinese market would be wide open for the use of video merchandising. However, it’s more complicated when you take a closer look. For instance, the level of trust in e-commerce transactions does not exist in China as it does in the U.S.. When you buy an item online, it’s expected that it be delivered to the customer’s door for inspection. The customer may accept the item or refuse it upon inspection…the transaction occurs at one’s doorstep, not online. One would think this bodes well for video to better qualify buyers. Maybe. If so, then is your product sophisticated and differentiated enough that the IP won’t get knocked off the minute you arrive? Can you leverage your video platform in-country without the ability to import or export data and assets across the great wall? Are the various markets’ demographics such that the demand for video will be sufficient to achieve ROI, and if so, how soon? Liquidus will keep you up to date with what we find out.