Solid research
First, solid research, analysis and planning must underpin decision-making for exporters who are targeting China. This will increase the odds created by a defensible strategy and implementation plan. Market size, growth and characteristics, customer segments, regulatory issues, competitive dynamics and other relevant issues must be clearly understood to develop an appropriate go-to-market strategy. It is especially important to understand the customer segments and channels that are targeted and customer buying behavior within each segment.
Invest in marketing
Second, it is necessary to invest heavily in marketing and to actively profile the brand that we are taking into the market. China’s large market is dense with many competing brands, and consumers are increasingly spoilt for choice. Therefore, we need to position a brand very carefully with the target audience. In addition, China’s rapid adoption of social media and pervasive digitalization also necessitate a localized approach and roll-out. This approach must factor in local languages, culture, consumer preferences, tastes and habits. Getting all of this right implies the need for a deep knowledge of local trends and prevailing marketing communications best practices. Many foreign companies have spent fortunes on marketing via social media in China that have gone unheard - an expense that can be avoided.
Managing business development
Third, the core activities of business development and sales must be managed and executed well. Consumer product route-to-market (RTM) activities via partners such as distributors, agents and logistics players must be carefully managed, and selecting the right (or wrong) partner can make a huge difference. The challenge in a large market such as China is that there is a huge reliance on partners and third parties. However, managing the various regions and stakeholders presents challenges of complexity and cost.
For business-to-business sales processes and business development in the industrial sectors - assuming a good product, service or value proposition - the customer targeting, relationship management and key message delivery are key elements of winning strategies. Sales force capability, size and effectiveness would usually be deciding factors for success. Where resellers are involved, careful selection, monitoring, measurement and management are the keys; and where direct engagement is the dominant sales channel, a costly sales system may have to be set up, or at least created via partnerships.
Supporting supply chains
Fourth, the supporting supply chain capabilities and infrastructure for strong execution and fulfillment must be in place. Indeed, logistics, that is, shipping, customs clearance, warehousing and transport, must be managed well. Effective, easy to use and secure payment systems must be in place, while responsive after-sales support and services must be rolled out in chosen markets.
These four pillars provide a useful framework for a systematic go-to-market process. It is necessary to have a management and business development team that consists of capable, professional and experienced executives. They must have the right language skills, cultural astuteness and the capability to implement a strong management system. They must set the course in order to make adjustments toward strategizing new insights. None of this is easy to achieve, but the reward for success in China is worthwhile.
**The author Rachel Wu is a director with The Beijing Axis in Beijing. The firm does global procurement, international sales activation and cross-border advisory and has offices in Asia, Europe and Africa. Contact her at [email protected].