Anyone can start a business in China

When we plan to entry an foreign market, we are afraid of making wrong decision in choosing right region in the target country, choosing right locations in the region, because heavy investment is involved and a mistake is too painful to afford by companies. However, this headache is gone for ever at least in China market.
Profile of China:
1. A magic land with 1.3 billion population;
Country Internet Users 641,601,070
1 Year User Growth 46.03%
Penetration (% of Pop. with Internet) 24,021,070
Country’s share of World Internet Users 21.97%

2. People adore online shopping (everything online. From beverage, rice to milk and coffee, from books to electronic instruments, from toothpaste to diamond. During special occasion, you can buy/ rent girlfriend or boyfriend  there with decent price too.

3. Well developed marketing places
Major marketing places:Alibaba ( Aliexpress, taobao, TALL/ TMALL GLOBAL, Etc)
Popular marketing places: JD.com, Xiu.com, vipshop.com, dangdang.com, yihaodian.com,
Fast-growing marketing paces: YMATOU (1M registered customer base), metao.com

Take Tmall for example, total transaction volume in Tmall reached more than USD 14.5 Billion Annual Orders processed more than 6.1 Billion packages access to 307 Million acive online buyers.

E commerce in China

E-Commerce is so huge now in China, some brands skip opening an actual store.
Topshop and Costco Launched in China Through E-Commerce

If sit in front of computer is still not convenience enough for you, you could find a third partner (TP)  and navigate the way out for you as well.

Third Party companies will find a way for you even you are blind in the foreign market.

http://www.bysoftchina.com/marketplaces/tmall-global

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4 thoughts on “Anyone can start a business in China

  1. Although China is a magical land where growth is high and user behavior is favorable towards e-commerce, there are still major political risks that have not been solved, especially for foreign companies. The Chinese government tends to regulate foreign businesses a lot heavier. Also, they have the power to censor and get rid of your entire business and/or website for any reason they deem necessary. I am sure as a small up-and-coming business, there would be no interference from the government. However, if you grow and become powerful, the government will take notice and could make it harder for you to do business. The reason may be that they want domestic companies to become more competitive or they deem your company a threat to the stability of the country (Google in China). China ranks 90th in the world on the ease of doing business ranking. Hong Kong and Taiwan would be far better places to enter China as a new business. Also, being web only decreases but does not eliminate these risks.

    1. I think the situation is sort of opposite.
      Chinese business model welcome foreign companies to grow in many ways especially in E commerce. Take Alibaba for example, one of its subsidiary called Tmall Global, which is targeting customers who like foreign brands. Foreign brands are promoted and protected by the marketing place as well. With a flagship store in Tmall Global, foreign companies/brands can relatively easy to entry Chinese market and compete with local brands. Other major marketing places lie JD.com (also known as 360buy.com) are opening similar platform as well.
      Admittedly Chinese government has higher control over large size companies due to security concern of the business and country overall, it might not be objective to evaluate this factor as a threaten to foreign companies in China, especially not to small or medium size companies.

  2. That is truth, E-Commerce is so huge now in China. But it doesn’t mean China is heaven most suitable for start business, Usually, the higher the income, the greater the risk and vice versa.

    1. Yea. Thank you Jose for the kind comment.
      This is also a really interesting phenomenal considering cultural dimensions in business. Asia people in general tend to have higher uncertain avoidance. Compared with shopping in physical store, online shopping has more uncertainties. However the percentage of people shopping online in China is very high, and e commerce grows at a rocket high rate.

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