Develop the Business in China

Understanding the target market is important for the company who planning to develop the business in China. Successfully marketing goods and services to Chinese customers requires understanding the country, culture, and business climate.

The Chinese are a very patriotic society, emphasizing collectiveness and unity. The importance of Confucianism in Chinese culture is reflected in the importance people in China place on duty, loyalty, honor, respect and harmonious relationships. These are principles that dictate business and personal relationships, and create a stable and harmonious society.

In the West, relationships between companies and consumers are built on business transactions, whereas the Chinese believe in building a relationship before business transactions take place.

In a society where relationship is more valuable than the transaction, a relationship of trust is essential before Chinese customers will buy a product or use a service. Online business in China is a powerful tool for reaching Chinese customers, but to be successful, online businesses in China must relate to their consumer base in a way that creates a sense of trust and fosters customer loyalty.

There are a number of other considerations that drive consumer decisions in China, not just relationships. Middle class Chinese are under peer pressure when it comes to consumption preferences. Research from McKinsey Global Institute suggests that successful brands in China are powered by their functional use, quality and taste, as well as recommendations from friends and family.

In addition to these considerations, Chinese customers purchasing decisions are also affected by a products social status. Western products are believed to elevate social status, which is why luxury international brands like Gucci, Prada and Louis Vuitton have performed so well in China.