Investing in China
ESEUNE Business School Weekly Articles
Sandra Ibáñez Ibarlucea
Sandra Ibáñez Ibarlucea graduated from Deusto Business School in 2013, where she studied a Bachelor degree in Business Administration with a Marketing specialization. She also graduated from Carlos III University in 2014 where she studied a Master degree in Management of the Film Industry.
Sandra has worked for almost a year in Exercycle S.L. one of the biggest fitness companies in Spain; and approximately two years in the Spanish Film Industry, in charge of private investment on audiovisual production.
Currently she is attending a Global MBA in China from ESEUNE Business School (Spain).
As we know, many people seek to develop business opportunities everywhere in the world, as long as those places offers certain advantages and good rewards. In a vast and giant market as the Chinese is considered nowadays, large amount of investors, businessman and other different kinds of individuals come to this Asian country to settle some activities that in the future would generate profit, though many come with a wrong idea of this place.
Culture, food, relationships, purchasing power... These variables necessarily need to be controlled before coming. If you want to create your business in China, you have to decide what will be your approach.
How to implement your business idea in China? How will be your commercial approach? Will you have your own distribution? Will you become a franchise? A brand license? These are some questions that need to be answered before entering to the market. Now we have to centralize our efforts on describing our product, explain what differentiates us from the competition, try to clarify as much as we can which advantages people could receive from selecting our brand, is it because our competitive price? Or maybe because we are already recognized in other countries? After this, we definitively can consider now that we would be in a good position to start negotiating.
The first idea you need to have in mind in your approaching to China as a foreigner is that, you cannot work alone, you need a Chinese partner. One in which you can trust and work with in a long-term vision. This will implicate travel to China very often, and a deep search and market research. Some ideas to start with, fare trades, public and private list of contacts (some of them you can find in the Internet and others you have to pay for them), associated sectors, references… This are simple examples that could facilitate the analysis.
At the end, if you want to enter in China, you must understand that you need to get deep into the market, which is not possible for one individual to know and comprehend the huge logistic that covers this phenomenon. In addition, the restriction of the government and the difficulties of the language could limit your capability, so a Chinese partner is definitively the best idea to develop your business.