According to Ben Wey, president at New York Global Group, it can be a complex process for Western companies to enter the Chinese market for investing. Nevertheless, because the Chinese consumer market is so huge there is the potential of a great reward, even if it comes with a big commitment.
In China twenty years ago, western brands and western technologies could make a big impression on consumers there, explains Wey.
Today the situation has changed enormously. Chinese consumers are much savvier about the marketplace; it is commonplace to see western products, along with Chinese brands, with a loyal following among Chinese consumers.
To overcome the present situation in China in order to advance the success of western companies in the Chinese market, Benjamin Wey has several recommendations.
• Investigate whether a product is actually needed by people in China. For example, a toaster would not do well in China because as a society Chinese people do not enjoy eating “things that are hard.”
• The product must be one that is acceptable to the Chinese market. It might be necessary to change the product in some way, or alter the marketing strategy so it will work in China.
• Make sure to research whether a domestic version of your product already exists there; if there are already well-established Chinese versions of your product, western companies will need a new strategy to compete.