Western companies in China

ESEUNE Business School Weekly Articles

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Matxalen Palacio

Matxalen Palacio graduated from Mondragon University (Spain) in 2015, where she studied a Bachelor degree in Leadership Entrepreneurship and Innovation. She specialized in experience economy. Matxalen has the experience of working on different countries like Finland, USA, China and India due to the degree that she has studied. Also she has worked for a year in a machine tool company called Ona Electroerosión where she has worked in export area as sales assistant.
Currently she is attending a Global MBA in China from ESEUNE Business School (Spain). She would like to create connections between Chinese and Basque companies.

The Chinese market is a great opportunity for companies of all over the world, but in their way to enter in to the Chinese market, something happens to them. Something happens as this situation makes to a big amount of companies return to their countries, with losses of money and hope in a market that is continuously growing.

Generally western companies use to work with western ideas and western vision of the market, but most of them ignore that Chinese market is a different world inside their own one.
Disown the idea of going to china without knowing about Chinese millenary culture or their habits, is the worst thing that a western company can do.

The Chinese customer need to understand what your product is about and what can this product offer to them, so in one word, the western companies need to ADAPT their product to the Chinese market. Yes, adapt the product to the real needs of the market, learning about the culture and way of working before entering in the country.

There are many examples of companies that have failed, due to the ignorance of the real needs of the market. This can be easier if we start from the beginning. The first steep that a western company must do, is to learn about the market, observe how his product can fit on it and adapt to the reality of China.

For example Chinese ladies love the white skin, is something that they wanted over anything else in their physical appearance, they could spend thousands of Euros in makeups that simulate them a perfect white skin.

Otherwise in the western markets generally the makeup offer you a little beat of colour for your skin, do to the way of thinking that sun tanning is the perfect tone for you.
This is why if a western company come to China must adapt its product to the real needs of the market, in this case they have to adapt their products to the necessities of the Chinese ladies.

To remember

To sum up the basic idea that I want to transmit, is that if a company doesn´t know the real necessities of the Chinese market, it is very probable that the company is going to fail in its try to enter its product into the Chinese market. Consequently this carries waste of money, time and to lose the opportunity of entering on the biggest market of the world nowadays.