Does Nativity matter to start business in China

Does Nativity matter to start business in China

Posted by Vivek Nama on October 25th 2016

As we all know even Multi national Brands like Mc-Donald's Customize themselves like we find McDonald's doesn't serve beef or pork at its Indian Stores, The McAloo Tikki is a menu item you won't find elsewhere and in china customers can request a bowl of corn instead of fries.

Here are some examples of big brands who chose Chinese names that have resonated with the public. Some are phonetically similar to their English names, while others are completely changed:

Tide -- Taizi, "gets rid of dirt"

Reebok -- Rui bu, "quick steps"

Nike -- Nai ke, "enduring and persevering"

Colgate -- Gao lu jie, "revealing superior cleanliness"

Marriott -- Wan hao, "10,000 wealthy elites"

Citibank -- Hua qi yinhang, "star-spangled banner bank"

Heineken -- Xi li, "happiness power"

Not only the language but native culture ,Mind sets, Habits ,Climate ,Religion, may matter the flexibility of the product this actually happens in every domain and sector whereas some out of the box products like facebook just need a change in language but nothing else  

Chinese are little concerned and thoughtful about foreign products and they know you are an outsider and you came to take there money out

Make an Initial Trip: Consider making an initial trip  to visit China and get a feel for the business environment.     

Having a sense of the similarities and differences in the way business is conducted can help you determine the best way to approach your operations.

After this initial visit, you will have met people in your  industry and have a general understanding of how your line of business is conducted. You may also learn potential key players, partners or professional service providers you will need to work with, especially in the initial stages of entry.

Conduct Market Research: Before diving too far into the process of entering China, take some time to conduct initial market research. This research should include verifying the legality of your product or service in the Chinese market, as well as the market demand for it.

It is also important to determine the current demand for the product and to what degree this is being met by the current competition. Understanding the strategy of your competitors will help you focus on pursuing a unique approach to the market.

Decide on a Legal Structure: Have you determined how you will be establish your business in China? Different legal structures come with different start-up procedures,tax policies, and limitations on the types of business transactions that can be performed.

Options include establishing as a Wholly Owned Foreign Enterprise (WOFE), Representative Office, signing a Joint Venture (JV) with a Chinese firm, or engaging a consulting or trading company are all options.

Determine the Regulatory Process: If only one piece of advice can be given about the regulatory procedure in  China, it is to begin early. Knowing what certifications you will need to obtain for your products is an important first  step in this process.

Once you have identified the regulations which apply to your specific product, begin the regulatory procedures to obtain  the time consuming certifications needed; the earlier you begin, the earlier you will be able to profit from your  efforts. To accomplish this task, it is a good idea to find a reliable agent to work on your behalf.

Gather Information from the Market: In China, little information regarding potential and upcoming projects is   publicized in media outlets or on the internet and it is instead passed between people. Having a local presence and a  strong network of contacts in China is essential for gaining access to this kind of information.

Prepare to Invest: As with starting any new business,upfront costs should be expected. To run a successful  business in China, recognize that you will need to spend a significant amount of time and money to establish your operations.

However, although the initial investment can be significant, the rapid expansion of the Chinese market means that great  rewards are possible for companies that make the necessary  financial and time commitment when entering the Chinese  market.

Keep in mind, the rewards may take longer to see than you  would anticipate, so be prepared for a longer period of work  before the harvest.


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