The size of the Chinese market attracts many companies, but entering it requires different preparation from a European market. The following five mistakes are common — and almost all can be avoided.
1. Registering trademarks too late
In China, trademarks are generally granted to whoever files first. If a company only thinks about this after entering the market, it may find that someone else has already registered its brand name. Register the trademark — including a Chinese-language version — in good time.
2. Too general a view of the market
China is not a single market: regions differ widely in purchasing power, consumer habits and competition. It is worth starting with one or two well-chosen regions or segments.
3. Relying on a single partner
A good distributor can help a great deal, but if every relationship runs through one partner, the company becomes dependent. Set performance requirements and exit conditions in the contract.
4. Underestimating regulation
Many product groups require Chinese certification, and labelling and packaging rules differ from European ones. These must be mapped before the product goes to market.
5. Managing from a distance
Personal presence and regular contact are decisive in Chinese business relationships. Infrequent meetings conducted by e-mail rarely lead to lasting cooperation.
The Roundtable helps with market assessment, partner search and delegations. More on entering the Chinese market.
