Marketing
in China:
Opportunities
and Challenges
By Gregory
Harris, Grand Rapids US Export
Assistance Center.
The
opportunities present in the
China market are real; as real
as the challenges the market
presents to American companies
looking to grow sales.
Business
people have for years dreamed
of the great potential of the
Chinese market. Some have
succeeded in the market, but
many have also failed.
Nonetheless, the enticing
vision remains of a viable,
growing economy of 1.3 billion
consumers.
Trade with
China has been increasing
dramatically. The U.S. is
currently one of the largest
purchasers of Chinese made
products. China is also one of
the fastest growing
destinations for U.S. exports
and now ranks tenth as a
market for U.S. products.
Overall, China is the fourth
largest trading partner of the
U.S. In the last 20 years
world trade has assisted China
in lifting hundreds of
millions of people out of
poverty and moved millions
more into increasingly
affluent working and middle
classes. China’s major
coastal cities already have
the look of affluence and
modernity about them. It has
been said that there are more
skyscraper building cranes in
Shanghai than any other
metropolitan area in the
world. China' s entry into the
World Trade Organization, the
preparations for the 2008
Olympics, the recent awarding
of permanent normalized trade
relations with the U.S. and
recent strong economic
performance highlight the area
as "the" market to
explore for 2002 and beyond.
Challenges
to market entry can be
formidable, yet are
continuously improving.
Stories of partnering
requirements, partners that
can't deliver on their
promises and graft are all
still around, yet are
hopefully on the decrease.
Distribution is improving yet
some executives are already
talking of moving lower-end
operations out of China.
However, more technical
positions are seeing a
surprising leveling off of
wages. Companies must still
maintain flexibility and a
long-term view of the market.
You may wish to ask
yourself: "Am I able to
meet Chinese standards? Can I
provide information in
metrics, or Chinese?"
Performing due diligence on
prospective partners or
clients is often the crux to a
successful transaction or
relationship. In investment
trends, foreign companies
continue to take more control,
over their entities in China
and depend less on the
partner. Of course, some
industries still require
certain percentages of Chinese
ownership.
The U.S.
Department of Commerce /
Commercial Service has several
programs to assist U.S.
manufacturers and service
providers gain a substantive
market presence in China. Most
American companies can grow
sales to China through market
research, background checks on
potential partners, trade
shows, or agent and
distributor searches through
the U.S. Embassy in Beijing or
U.S. Consulates in Shanghai,
Guangzhou, Shenyang and
Chengdu.
As part of any
well-structured travel to
foreign markets, business
executives should register
theft passports with U.S.
authorities in order to
facilitate replacement and
further international travel
in case of loss or theft The
U.S. Embassy in China has
online registration to make it
easier for U.S. business
executives to take care of
this matter. Also, personally
meeting the U. S. Commercial
Service Staff in your area and
at one of our many offices in
China remains an excellent way
to acquire market information
and contacts.
Please review our other
articles on China:
- Turley's
Tips - Written by US
Senior Commercial Officer,
Alan Turley, this handy
series of tips will help
assure your success in
this difficult market.
- China
WebGuide - laced with
invaluable sources of
information on the Chinese
market.
|
The
Export
Channel
Expand
your vision!
What’s
on?
Insightful,
interactive,
international
business
Webcasts,
brought to
you by the
U.S.
Commercial
Service.
Expand your
vision now!
|
|
Market
Brief
In-country
experts
share unique
perspectives
and new
opportunities
for markets
around the
world.
|
 |
China’s
imports of
U.S.
products are
growing,
doubling
since 1990..
Click
on the
photo..
|
|
Gregory Harris is an
International Trade Specialist
in the Grand Rapids U. S.
Export Assistance Center (616)
458-3564 or via email at Gregory.Harris@mail.doc.gov
.
Date Updated: March 27, 2007
|
