On Wednesday the 17th of July 2019, the ‘Win in China: How to tap into the Chinese market for growth’ event featuring Bo Ji, Assistant Dean at Cheung Kong Graduate School of Business, was held at Haymarket HQ. This event was hosted by the Australia China SME Association (ACSME) and attendees were given a unique opportunity to learn about China’s business environment. The key take-outs of this event were:
- Don’t fear China. It’s a large and important market with a strong interest in foreign technology, products and services and this is the perfect time to make your move. Don’t be put off by what you read, hear or see! Australia is well positioned to take advantage.
- Most companies fail in China because they don’t do their research or are unwilling to localise their product or service proposition. Walmart is a good example. Be aware of cultural differences, consumer behaviour and local success factors.
- The Chinese are relationship-driven in their decision-making. Sometimes they do business with people they like and trust even if the product or service offered is inferior to other options. Always put the relationship first.
- Hire Chinese talent. One quarter of the world’s STEM (scientists, technologies, engineers and mathematicians) are Chinese. This STEM workforce is already 8 times larger than the US and growing 6 times as fast.
- Four Steps to achieving miraculous growth in China:
- Understand the Chinese consumer
- Establish a local team (eg STEM) with strong execution capabilities, local understanding and hard work
- Develop the right channel strategy (e-commerce, distribution, franchise etc.)
- Create an effective marketing strategy
- Cultural differences are important to observe and respect. Just because “their way” doesn’t seem to fit “your way” of doing things, don’t write them off as unprofessional or chaotic. Think about the advantages of their approach. They’ve been doing business the same way for thousands of years. They can’t all be wrong!
- Australia has never done anything to harm or upset China. This puts us in a unique position of trust and respect. Make the most of this!
The Australia China SME Association (ACSME) is proudly supported by the Australia China Friendship and Exchange Association (ACFEA).
For more information on this event, please click on the link: http://www.acsme.com.au/blog/2019/7/17/bo-ji-win-in-china-seminar-highlights