How to understand China?

Martin Jacques once said: “The great task facing the West over the next century will be to make sense of China – not in our terms but in theirs. We have to understand China as it is and as it has been, not project our own history, culture, institutions and values onto it. It will always fail that test. In truth such a mentality tells us more about our own arrogance and lack of curiosity than anything about China.” 

Appealing market

More and more companies see opportunities in developing their business across borders. The size of the Chinese market is particularly appealing. The enormous pace and scale of China’s economic transformation has sparked a rapid growth of the middle class. By 2022 more than 75% of China’s urban consumers will earn an annual 60,000 to 229,000 renminbi ($9,000 to $34,000 – €8,300 to €31,300) compared to 4% in 2000. Better living standards have shifted people’s focus from satisfying basic needs to pursuing a higher quality of life, creating significant opportunities in the retail market. 

This is also reflected in the pet industry, where international players see opportunities on the Chinese market. The demand for pet food and pet products is rising while the pet population is steadily growing. Dry dog and cat food are great sellers in China. Companies such as Royal Canin, Nestlé and Mars have been highly successful for a while. Although domestic manufacturers are catching up in the category of pet food, foreign players are still highly competitive. 

Failures

‘The top ten pitfalls when doing business in China’, ‘Five rules to succeed on the Chinese market’…
it sounds fairly comprehensive. In fact, it turns out to be a great challenge for Western businesses to achieve financial success on the Chinese market. Even large players such as Google and eBay, which have been widely successful everywhere in the world, have failed in China. 

Business failures are to a great extent caused by insufficient cultural awareness. Being successful in China requires having a localized business strategy. Going local asks for a close cooperation with your local Chinese partner, distributor or advisor.

Cultural awareness

During the presentation at GlobalPETS Forum Asia, China Inroads will give some insight into the elements of success. One of the most important ones is cultural awareness. What makes Chinese and Western people so different and how can we learn from each other? 

Did you know that the sayings of Confucius, a Chinese philosopher who lived around 551 B.C., still influence Chinese people’s daily lives today? And do you realize that Chinese people have a strong desire for harmony, so they generally wait for the right moment to act? These seemingly simple things have a great impact on the way of doing business. We will share our first-hand experiences to show you a different perspective.

We will also discuss practical issues: When should you enter the Chinese market? Which challenges should you consider? Which market channels should you use? How do you find and select the right partner? How do you build a strong cooperation?