The failure of western internet companies to penetrate the chinese market

Harsh rhetoric from top Chinese military thinkers has widespread public support. Here, a flotilla of Chinese fishing boats steams toward the East China Sea and a group of uninhabited islands that Japan and China both claim. But as he neared the end of his speech, he went on the offensive. Visibly displeased at the dig, the senior Japanese officer present, army Lieutenant General Yoshiaki Nakagawa, left with his fellow officers as soon as the speeches concluded, people in the audience said.

The failure of western internet companies to penetrate the chinese market

Read more This paper is based on past surveys of Chinese business opinion in the two key cities of Beijing and Shanghai, comprising in-depth interviews with business owners and senior purchasers.

Companies were divided into quotas to ensure a cross-section of different types of manufacturing and service companies. The principal aim of this paper is to dispel some of the myths propagated about Chinese business, and explore the reasons behind both successful and unsuccessful marketing and sales approaches in China.

Chinese Attitudes Towards Marketing And Sales When discussing Chinese attitudes towards marketing and sales, it is important to make the distinction between the different types of companies operating in China.

Marketing staff employed by western multinationals typically have more heightened awareness of marketing concepts than local Chinese companies, often employing expatriates or returnee overseas students with MBAs in senior marketing positions.

With such large variations in marketing practices among different types of companies in China, foreign companies are best advised to take a flexible approach to sales and marketing. Commonly, marketing is viewed as a task for the sales department, its role sometimes viewed as little more than taking care of the company logo and brochures.

Figure 1 — The 4Ps of Marketing In contrast to some Western markets, the salesperson and more broadly the principle of selling are more widely respected in China. Two issues perhaps lie at the core of this fact: A good salesman must be adept at forging not only relationships, but also friendships with potential customers.

The importance of relationship-building tends to imply a long sales process, requiring of salespeople patience, continual learning and an on-the-ground presence. In order to appreciate how good Western companies are at targeting potential Chinese customers, it is worthwhile considering how Chinese companies prefer to be targeted by potential suppliers.

As in other markets, the answer to this question is that a wide range of marketing and sales techniques can work, and usually a combination of different methods is necessary.

Figure 2 illustrates the general view of the Chinese business community: Figure 2 — Communicating With Chinese Clients Conferences And Exhibitions In many Western markets, conferences and exhibitions are often derided as a waste of time and money.

In Asia, and particularly China, nothing could be further from the truth.

Why Do Global Internet Brands Fail in Chinese market?

In most industries and market sectors, attendance at exhibitions, conferences and similar events can be essential for any company looking to achieve substantial or sustained success in China.

Such events are an excellent way of making initial contact with customers, and can also be a good means of moving a potential sales relationship forward relatively quickly. The events are an opportunity for potential customers to ask questions, and have the advantage of establishing the face-to-face contact which Chinese buyers value so much.

More importantly, they help to persuade buyers that companies are committed to the local market, by virtue of the fact that they have physically devoted the time and expense to be there.

All big cities have conference and exhibition centres Beijing has seven, for example and details of their events can be found simply by contacting the centres directly or looking at their websites.

Figure 3 — www. The size and scope of these exhibitions varies greatly, and it is advisable to do some background research before deciding which exhibition to attend.

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Looking over exhibitor lists from past exhibitions is a useful way of gauging the profile of an exhibition. Similarly, the location of an exhibition is often significant. While the larger, more influential expos tend to be located in Tier 1 cities such as Beijing, Shanghai and Guangzhou, exhibitions located in Tier 2 and 3 cities are more likely to have a higher proportion of smaller local companies than multinationals.

Similarly, exhibitions located near to industry clusters are likely to have more key industry players in attendance.Find the latest business news pertaining to Technology covering companies, advancements, multimedia, electronics, mobile technologies, and science available on the official CNBC Technology site. is the place to go to get the answers you need and to ask the questions you want. Apps & China: How to Penetrate the Market, and What Lessons to Learn Posted On January 30, by roeeyossef A report released last October noted that “China hit an industry record with the highest revenue quarter the iOS App Store has ever seen”.

The Truth for sale: How to fight the evil and make some money on it too. The Truth for sale: How to fight the evil and make some money on it too. China has set its economic growth target at to 7 percent this year, due to a major policy shift from seeking quantity-growth to cost-benefit optimized and sustainable growth.

to 7 percent growth is where the market can generate adequite new jobs for its growing labor force while giving the government maneuvering space to slash low-quality excess manufacturing capacities. Even now internet penetration is low in India and many people are yet to trust E-commerce companies.

The failure of western internet companies to penetrate the chinese market

So, there's still room to grow. However, that was not the case with Chinese market.

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