Business Development

Business Development

Understanding Market Trends in China

book-Understanding Market Trends in China

Understanding Market Trends in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Understanding market trends in China is critical for your China market entry strategy and business development.

I am sharing some insights on the market trends in China and you might sense some new opportunities.

Understanding Market Trends in China

Understanding Market Trends in China

  • The Rise of Chinese Middle Class

Chinese middle class is starting to pay more on services and luxury products, other than new homes and cars only.

  • Chinese Millennials: Divided Generation

Chinese Millennials are facing unprecedented prosperity and struggling with the growing pressure.

Unlike their previous generation, The New Youth in China are living on mobile phones, they are familiar with various apps and social media, know the world fashion culture and they are willing to pay for services.

It is more challenging to market to this generation but you have to. Because they are the future of China market.

5 years ago, I could not imagine that Chinese readers will donate to my Chinese articles. More than  50% of the donators to my articles are born in the 1990s.

  • Looking For a Better Life

Chinese consumers are more diversified and start to pay for quality stuff.

They are looking for better life quality, including better healthcare, better education, better food, better air quality, better relationship…

More and more people buy foreign products from overseas.

  • Buying Everything Online, Home and Abroad

This isolated internet island is way more interesting than a newcomer could imagine. It is the playground for many innovative internet-based companies, too.

Chinese consumers have switched to buying online in a lightening speed, I am not telling the joke. Chinese consumers can buy almost everything from their mobile phones, or computers.

Cross-border eCommerce is booming since Chinese consumers are buying more and more from overseas market.

My new book: Sell Online to China helps you understand what you need to prepare.

  • Challenges for Traditional Chinese Companies

It’s a new era full of changes.

Many traditional Chinese companies are struggling to find new business models.

Emerging businesses, esp. online businesses force traditional companies to make changes.

Many people are worried about their jobs and it is supposed that millions of white-collar jobs will be eliminated in the next few years.

  • Rise of Startups and Freelancers

China is full of opportunities for small to medium companies, startups, and freelancers.

More and more Chinese start-ups find their way, so do Chinese freelancers. More and more overseas Chinese students are coming back China to make their fortunes too. People can make decent money from simple business models, like working as Daigou agents.

“Freelancer” in China is not the nickname of the jobless person any more. (Road of Chinese Freelancers: Online Roundtable Meeting at Zhihu)

  • Government Still Plays an Important Role

You will inevitably handle the relationship with the government. Follow the rules and do not play any tricks.

Get the support from them and keep updated of any new favorable policy.

 

How to Hire Your Chinese Virtual Assistants

How to Hire Your Chinese Virtual Assistants

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Basically you can find most services you need at China Market Entry Services & Products – SinoStep.

I was invited to an online round table meeting to share my insights for the freelance business and advice for Chinese cross border freelancers.

please check details: Road of Chinese Freelancers: Online Roundtable Meeting at Zhihu.

I answer dozens of questions there and write my column on China freelancers and small startups.

Here are some tips for you concerning Chinese cross border freelancers.

Far Less Cross-border Freelancers

Compared to English speaking countries like India, Philippines, USA, Canada, and UK etc. The number of Cross border freelancers in China (yes, in China we call freelancers working on global orders in this way) are far less.

How to Hire Your Chinese Virtual Assistants

How to Hire Your Chinese Virtual Assistants

(data from upwork, Nov. 25, 2016) In the world largest freelancer platform-Upwork, there are 13450 registered freelancers from China, 1569 freelancers had earned either USD1 or worked at least one hour at the platform.

While the same numbers are 568879 and 49713 in USA, 407862 and 51721 in India, 314941 and 45780 in Philippines, 6278 and 604 in New Zealand.

Langauge Barriers

The small number of cross border freelancers is mainly due to the language barriers.

It is quite difficult for Chinese freelancers to compete with other freelancers from English speaking countries, esp. for some common skills.

Labor Cost

Most those Chinese freelancers who are able to build their cross border business can speak good English and they can get good job with good salary in real life.

It is quite difficult for Chinese freelancers to compete for low level common skill jobs. the higher labor cost is the reason.

However, Chinese freelancers are competent in price compared to western developed countries, esp. in technical jobs.

Good English Charges More, But Worth It

Smooth communication is critical for your business success.

But good English always charges more.

Good English Does Not Mean Good Capability

Don’t judge a developer only according to his spoken English, since very few Chinese developers can speak good English, even many top-notch ones from BAT (Baidu, Alibaba, and Tencent.)

Find proofs or testimonials before you hire him.

Be Careful: Many Chinese Translators

Many Chinese translators, either good one, or poor ones, are working on upwork, and many of them do not have real business expertise. Be sure to verify whether they have similar experience.

Find Local Freelancers from the Right Place!

If you target on mainland China market, find freelancers from mainland China.

If you target on Hongkong or Taiwan market, find freelancers from there.

Do not hire a Hongkong VA for the China mainland market, in most cases he/she will either outsource your business to another freelancer (hopefully a good one), or mess up your business.

If you are based in Shanghai, A good choice is to find a VA in Shanghai too.

Travel Required?

If you just need remote work, location is not an issue.

If you need the Chinese freelancer to run errands in certain cities, you need to consider your travel cost.

If you need market research in big cities like Shanghai and Beijing, find a freelancer based in there.

If you need freelancers to travel frequently to several places in Zhejiang and Jiangsu Province, Find a freelancer in the same region of Yangtze Delta (could be Zhejiang, Shanghai or Jiangsu).

Monthly or Pay as You Go

A stable relationship will help you solve most problems in a long run at a low total cost.

I developed some China VA service packages according to frequent needs of

  • Administrative & Customer Service
  • Business Services
  • Website Management
  • Writing and Online Marketing
  • Trade & Sourcing Service
  • Sales & Research

Monthly plans will be good for long term plans.VA

If you only have a short project, you can either hire by several hours or negotiate a fixed price for it. But you need to draft a detailed project scope if it is a fixed price contract.

Pilot Contract

You can try a pilot contract as a test to be sure about the skills of the freelancer and how the communication goes.

Phone Call Test

Make sure the one you hire is a real person.

Some freelancers might use other’s pictures to attract clients.

I saw many freelancers using celebrities’ pictures, or a guy using a pretty girl’s photo.

Also make sure the guy can understand your English and can speak English.

Where to look for?

Google and Upwork are the two best places to find cross border Chinese freelancers.

You can search your concerned problems and hire the author if you think he/she is qualified, normally this is for you to hire high end professionals.

Upwork is the largest marketplace where you can find average freelancers quickly.

It will cost more through other channels and you need more time to be sure who is worth working with.

Let me know if you have further questions.

We’re not going to keep the Chinese site

We’re not going to keep the Chinese site

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

We Don’t Need Our Chinese Website

Yesterday I got a message from an client to close their Chinese website.

Dear Chao!

It took time to decide whether we still need our Chinese website. Sorry to have kept you waiting.

We decided that we don’t need it, as far as it’s been just a waste no money.
We’re not going to keep the Chinese website. Thank you for your help.

We're not going to keep the Chinese site

We’re not going to keep the Chinese site

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Pecan Purchase Tour in USA and Mexico

Pecan Purchase Tour in USA and Mexico

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Sinostep represents several large Chinese roasters to buy pecans and other tree nuts directly from  farms in USA, Mexico, South Africa and Australia.

In this pecan selling season, we headed to USA and Mexico to inspect our ordered pecans, visit some orchards and meet new partners.

As I mentioned in Potential vs Challenge: A glance of China pecan market, nowadays more and more Chinese buyers send people to orchards directly to understand what exactly happen in the market, this is an opportunity for overseas pecan growers and Chinese buyers to establish a more close relationship.

Chao: Buy pecans in Mexico a

Chao: Buy pecans in Mexico and USA

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Please Help Build My Profile in China

Please Help Build My Profile in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Build my profile in China

In China, football is on it’s way up and many overseas independent contractors want to be a part of it.

Pedro, A previous professional football player in England come to me for a proper China market entry strategy and some advice.

Pedro wants to build his own profile and expand his personal business in the China market. Currently he is working for the Premier League by going to different football teams for professional development for players and coaches.

Chinese kids Playing football

Chinese kids Playing football

After checking his website and details of his services.

I listed some points to be included in his business plan:


1.) Find a partner to work together

Pick someone who will be a longterm partner, he should be capable and experienced in marketing strategy in China.
Only in this way, You can quickly solve your communication problems with potential partners and clients here in China.

It is not only about language but also about cultural and psychological.

2.) Prepare your profile for the Chinese market

You need to persuade your potential partners and clients to trust you.

List your case studies and testimonials, point out your selling points.


3.) Understand the market and Localize your service

China market is different, what the market needs? what can you do? why do they need you? where is you target market?
You need a good market research and understand what it happens here.

For an independent contractor, it is wise to find a suitable niche market to start.

 

4.) Increase your visibility

Build your personal brand here in China and you can establish direct communication channel easier with local potential clients.

Be wise to do this.

You can make full use of Chinese digital marketing platforms.

 

5.) Business development

Find potential clients and get in touch with them and start the conversation.
Your goal is to grow your business in China, and this is the key step to close deals.

Build and expand your own network.

For your business, phone calls and face to face meetings are more efficient, and find important contacts through referrals.

Video: China Cross Border Consultant Featured by Paypal

Paypal-Chengchao

Video: China Cross Border Consultant Featured by Paypal

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

As a China cross border consultant, I was invited by Paypal to shoot this video sharing my career life and experience of receiving overseas payments.

I started using Paypal in 2004 when I was building on my own web store then. It is quite early for Chinese merchants and it brought me initial foreign client.

Chao's interview video in Paypal China Merchants' Homepage

Chao’s interview video in Paypal China Merchants’ Homepage

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How to Establish Your China Distribution Network Effectively

How to Establish Your China Distribution Network Effectively

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

Selling to the rapidly expanding market in China is a great opportunity for most global businesses.

While many business owners may be very excited by the market potential in China, it’s very difficult for them to start with the strategy and establish distribution channels in the Chinese market.

Sinostep had helped a variety of international companies develop and manage their China distribution networks in China with China market entry services. we have gained valuable experiences in the process for overseas business entering the Chinese market.

Products including but not limited to the following

  • Imported Food: Chocolate, Ham, Pecans, Olive Oils, etc.
  • Nuts: Pecans, Pistachios, Macadamias, Cashews, Walnuts, Pine nuts.
  • Wine: Red wine, Liquor, Whiskey, Beer, etc.
  • Frozen Products: Pork, Beef
  • Fashion: Women Apparels, Bags, etc.
  • Baby Products: Baby shoes, Infant formula milk powder, etc
  • Medical: Medical Equipments, etc.
How to Establish Your China Distribution Network Effectively: (Photo by Chao, City SuperMarket at IFC, Shanghai)

How to Establish Your China Distribution Network Effectively: (Photo by Chao, City SuperMarket at IFC, Shanghai)

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How to Start Your Business in China

How to Start Your Business in China

Chao Cheng

China Market Expert Expert, Senior Partner at SinoStep
Author of Sell Online To China (Your Opportunity in China’s Booming Cross-border eCommerce Market) andHow to Build A Right Chinese Website That Works In China.

Cheng Chao has extensive expertise in China market entry, global translation & localization, cross-border business development, and global digital marketing.

Chao founded ChineseTrans, where he led a team of senior linguists to establish ChineseTrans as the market leader in professional Chinese translation services.

Since 2011, Chao has served as the managing director of SinoStep, a consulting agency helping foreign investment enter into the China market. Backed up with a strong team of China business consultants experienced in different sectors, Chao has successfully introduced dozens of overseas brands into the China market, established their operations in China on early stage and adapted their businesses to the China market.

see Chao's Bio

All foreign business owners need to face the complete different culture in China and the way to do business.

In the last 5 years, we’d helped many overseas businesses enter into the China market.

Here are some tips to start your business in China

1. Strategy First
2. Pick Your Location
3. Determine The Legal Structure
4. Find A Chinese Partner, or more
5. Work With Advisors
6. Develop A Business Plan
7. Choose A Perfect Name
8. Register Your Business In China
9. Open Your Bank Account
10. Hire Your First Employee In China
11. Build Chinese Website That Can Sell
12. Get Your Products To the Market

 

How to Start Your Business in China

How to Start Your Business in China

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