Why a great China market entry strategy matters so much? You Only Have One Chance to Enter China Market
China is winning half of the luxury world. China has delivered more than 50% of global growth in luxury spending between 2012 and 2018. It’s a step that you cannot afford to ignore on the path to future growth.
Yet, ask the CEO of Canada goose saId:
You Only Have One Chance to Enter China Market
To make Chinese customers fall in love with your brand, you also have only one chance.
It takes a comprehensive China market entry strategy and excellent execution. And this is where the challenges are:
1. Lack of understanding of the Chinese market and consumers
Without market knowledge, it’s impossible to develop the right story for the market. Brands need a story that appeals to the Chinese market, but also stay global and classic.
Chinese millennials want to be treated as unique individuals, not just a member of the “Chinese client” group. There is a fine line between the two.
Many luxury brands started campaigns to please the Chinese consumers, only end up sending press releases apologizing for “disrespecting Chinese customers”.
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2. Lack of understanding of Chinese social media and e-commerce environment.
Social media and e-commerce are key components of a china market entry plan. Social media and e-commerce play out very differently in China. The definition of good user experience is also very different in China.
In China, there is not just an e-commerce website like Amazon, there are TaoBao, JD, etc. There is not just one equivalent of Facebook or YouTube, there is WeChat, Sina Weibo, Tencent Mini blog, Red Book, Toyin, Blilbli.
Each of these social media and e-commerce platforms targets a very niche customer group and have a very different customer experience.
All the players are comparatively new. A new player can emerge and dominate the market overnight, but can also disappear overnight. To stay relevant on prominent platforms, Brands need to constantly study and stay on top of the trend.
3. Lack of the ability to manage different Chinese agencies
The marketing agencies are also very new because they are growing with the industry.
There is no one agency who can provide all services under one house. My friend, head of marketing at a Fortune 500 brand in China, has 10 people in her team just to manage the different marketing agencies that each provide a specific service for a specific platform.
It also takes time and effort to train and monitor these agencies. Close monitoring makes a huge difference in what you get.
However, the efforts pay off.
- Increase knowledge and understanding of Chinese social media and e-commerce environment
- Develop a brand story tailored to the Chinese market. Have a China market entry strategy including social media and e-commerce strategies.
- Execution, execution, execution. Hire, partner or source expertise to deliver strategies. You need to develop or hire skills to filter, train, monitor and manage the different agencies to work together to deliver a holistic strategy.
High Net Worth Academy helps luxury brands grow high net worth clients, and succeed in China and Asia.
Tess Zhao, CEO & Founder. Formerly Head of Global Business Development at Harry Winston Diamonds, Tess is an expert on selling to HNW clients. She was also Head of Jewelry at Amazon Fashion, Media Spokesperson at Jaguar Cars, and a Financial TV reporter.