China Market Entry Strategy: Start Online
China Market Entry Strategy: Start Online
China has developed to wind up one of the world's driving exchanging economies and a business center point for organizations from all around the globe. This pattern has made working together in China a standout amongst the most lucrative attempts for organizations hoping to contribute here. China offers both organizations and organizations an awesome speculation opening which clarifies why each one of them needs to put resources into the blasting exchanging economy. Quality has then become a priority.
There are many reasons as to why China is such a good place for doing business and according to a number of china business consultants, population plays a huge role.
According to the stats released from the sixth census in 2010, China population stood at 1,370,536,875 representing a 16.7% increase from the previous census in 2000 which stood at 1.2 billion. This growth was even despite the many initiatives taken by the government to try and control the population growth especially through their one-child policy program.
However, this was not the case post 1949 as China leaders viewed large population as an asset andencouraged people to populate. As per the first census that was conducted in 1953, China's population was at 583 million. Later on, it became apparent that the rapidly growing population was becoming an economic liability and therefore, measures had to be taken. This triggered the mass birth control initiative by the government which finally led to the one-child policy which was later on abolished in 2015.
According the projections by the United Nations, it is estimated that the population by 2050 will have reduced to 1,295,604,000 and up to 941,042,000 by the year 2100. Therefore, keep this in mind when formulating your China business strategy if you want to take advantage of the many opportunities presented by this second world's leading economy.
Nowadays, this growing population represents a powerful latent market, with always more and more potential consumers ready to make use of their increasing purchasing power.
Formulating your China market entry strategy
Due to the prominence and the competitive nature of China's market, it is often daunting to break into the market and automatically become an instant hit. This can explain why most companies opt to seek help from China business consulting agencies even as they continue to formulate their own market entry strategies.
In such a competitive market, it's highly recommended to start online as an initial step. There are anumber of benefits associated with this market entry strategy and include but not limited to:
- It's always easy and fast to set up an online business in China because there are less restrictions
- It is also your best option if you want your business to get a nation-wide coverage
- Setting up an online business is relatively cost effective
- You not only get nation-wide coverage but also global coverage
- You get to manage your business from anywhere in the world
The growing demand of e-commerce businesses in China offers you a perfect opportunity to start an online business in China.
E-commerce business in China
E-Commerce business in China is thriving, like in the furniture market for example. In China,B2C online sales are growing at an annual rate 25 percent thereby offering businesses with plenty of investment opportunities to take advantage of. According to an analysis done by Bain & Company, the B2C online retail in China is estimated to grow three times faster than the overall retail. In fact, it is estimated that by the year 2018, half of the total online sales will emanate from Tier-3 cities and below.
As a matter of fact, the transaction values of the China's B2C online market as per the third quarter of 2015 (November) reached an estimated 503.6 billion yuan (approximately $78.58 billion) representing a 49.7% increase when compared to the same period last year.
The growth of e-commerce businesses in China has surprised many considering the fact that China's path to e-commerce leadership was hard to foresee about a decade ago. As of 2000, China was yet to develop any e-commerce application. There were only 2.1 million internet users registered that year which gave little hope to e-commerce businesses. Fast forward to 2013, there were about 600 million internet users and the booming e-commerce business in China was attracting interest from all around the world. It is even estimated that China is on course to surpass the U.S and become the leading e-commerce market place in the world. This makes e-commerce business development china a lucrative venture for companies and businesses looking to explore the China's market.
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