You want to enter the Chinese market or are considering it. The big problem is knowing just how to proceed.

Research the Market

The idea is to gauge if there is a demand for your products. Ideally you would hire a professional market research firm but in addition to this you can:

• Investigate if your competitors are selling in China. If so, is there any way to tell their success? Are their stores busy? Has their stock value risen?
• Localize your website for China and optimize your site for Chinese Search Engines. Do you get any enquiries?
• Attend a Chinese trade show and build brand awareness while getting valuable market feedback.
• Can you sell your products to someone who is already distributing in China?

One of the best things to do is visit China and check out things for yourself. Many people come away with useful connections with just one visit. It helps to prepare a few things to get the most value from your trip. For instance, you should time your trip to coincide with a major Chinese trade show.

You can get a long way in Beijing and Shanghai without speaking a word of Chinese but it will help immensely to translate your business card and website before coming. Consider this scenario, a low-level manager at a conference is very interested in your company and tells his boss. His boss has been meaning to study English for years but hasn't found the time for it. He takes a look at your business card and website and finding only English does not get a clear picture of your company. Things tend to stop there.

Attend one of the many networking events. You can talk to people who have already set up companies and get advice on how best to proceed.

Be sure to brush up on Chinese customs and etiquette (we can send you a list). It would be very embarrassing to be caught wearing a _______ colored hat. Worse than embarrassing, it might sink a deal.

Register your Company Name and Trademarks now!

Even if you have decided the time is not right to enter the Chinese market, you need to register your company name and trademarks now. If someone registers them before you, they will have the rights to those names! The process is not complex or costly but if someone beats you to the names, the subsequent legal problems to acquire those names will be both complex and costly. On your reconnaissance visit to the country, be sure to complete these registrations!

Myths of the Chinese Market

The people do not have enough money to purchase western products.

False - Though the average person has a low income, there is a sizeable upper class. Even though the percentage of rich people is small, given the huge population this turns out to be a lot of people. If you visit Beijing or Shanghai, as you are in the taxi from the airport, count the number of Mercedes, BMW's, and Audis you see on the road. Per mile of road, China will beat most other countries.

High priced western products cannot compete against low priced domestic products in China.

False - Low quality often goes with that low price and if you have a good product, people are willing make the purchase.

Entering the Chinese market is difficult and costly.

False - With WTO it is no harder than selling in any other foreign country. This is not to say it is easy. Certainly China should not be your first attempt at international sales.

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