Within China, rapidly changing demographics, rising incomes, increased consumer spending and an increasingly open business environment have all helped to make the Chinese market increasingly attractive to Western businesses across a variety of industries. Similarly, declining sales in their home markets has forced many US and European companies to relocate China firmly to the centre of their long-term global growth strategies.
Breaking into the China market successfully can seem like an almost impossible task to foreign companies with limited or no experience of doing business there. The aim of this white paper is to highlight some of the key challenges that foreign companies face when entering the China market for the first time, and to offer some practical recommendations that can be integrated into a company’s China market entry strategy and expansion plans.
Economists generally attribute much of China’s rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand.
From Cartier to Gucci, international luxury brands have showcased their latest collections in the consumption exhibition hall of the third China International Import Expo (CIIE), turning it into one of the most glittering, bejeweled sections of the CIIE.
Many of them were attending the expo for the third time. They said they were in a “happy mood,” as overseas luxury companies have reported outstanding sales this year in China not only because of China’s successful control of the pandemic and the affluence of Chinese consumers, but also because of their embrace of Chinese e-commerce.
“Despite COVID-19, our brand is growing very fast in China, and the Chinese market is obviously outperforming the rest, as there is a willingness from the Chinese government to foster the domestic market by decreasing the value added tax and import duties,” Mathieu Delmas, managing director of Piaget China, told the Global Times.