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Failures of Global Companies in China: Ignorance of the Market Differences in China

ByChao Cheng|China Market Entry 101

May04

In the past decade, we can see so many overseas companies are coming into China with high hopes to develop a market but they failed to live up to their expectations. It seems interesting, No one expected it to be this way especially for most American cutting-edge technology giants, Yahoo, Ebay, MySpace, Facebook, Twitter, Groupon, […]

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About the Author

Chao is recommended by Paypal to bring overseas brands into the China market. Now he coaches business owners to start up and grow their business in China. Author of Sell Online To China, How to Build A Right Website That Works In China, and a series of China Business Guides.

[…] However, Culture matters enormously, most of the internet titans failed in China, please check my previous blog: Failures of Global Companies in China: Ignorance of the Market Differences in China […]

Gary Kearns February 6, 2015

A very interesting and thought provoking article Chao. It is right what you say about patience. Western companies are always talking about growth and profit but only seem to take the short term view and if things don’t seem to be happening the way they want then they just give up and pull out. Also, many companies have to keep their shareholders happy so they have to engage in activities that give a good short-term return; they want to make a quick kill, they don’t want to wait 10-15 years.

How do you get this message across to those companies who may be considering setting up some kind of business in China?

How many companies actually do so? Do you have any statistics?

Regards

Gary Kearns February 6, 2015

Have any western companies actually succeeded in China?

    Chao Cheng February 9, 2015

    Actually there are many successful ones,

    KFC, Starbucks, Pepsi, P&G

    It is strange that McDonald did not do the good job as KFC in China,
    We can summarize some key successful factors for KFC.

    1. Great experience for kids, they love the environment and the toys

    2. First Arrival in China

    3. Flexible financial strategy, Franchising is not bad

    4. Better positioning

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