Does it make sense to enter the Chinese market — Marcus Pentzek // Searchmetrics

About the speaker

Marcus Pentzek

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Show Notes

  • ·01:57 : Who should be expanding into the Chinese market? ·Marcus talks about the business types that are popular in the Chinese market. While Marcus explains that there is no specific business that should or should not enter the Chinese marketplace, there are many opportunities for B2B product-based companies to thrive. Ben and Marcus discuss the size of the Chinese market compared to the U.S. market. ·03:41 : Should you be entering the Chinese market? ·Outside of the size, the Chinese market is very different from the U.S. market. Marcus explains what you need to consider when deciding to enter the Chinese market. If theres already a demand for your product in China, then thats a good sign that you are ready to enter that marketplace. Things like the language barrier, cultural expectations, and staff are among the elements that you should also think about. Ben and Marcus discuss the different complexities that come with Chinese market. ·06:12 : What are the biggest factors you should be thinking about? ·After deciding that theres enough interest in your product for you to enter the Chinese marketplace, you still have to think about the logistics of how you will run your business. Ben and Marcus talk about some of the social and political conflicts that you should be aware of before making your decision and how these issues will affect the way your business operates. ·09:01 : How to enter the Chinese market ·Test the market first or start small. You can get your foot in the door by using one of the multiple online platforms to sell in China. Ben and Marcus discuss the pros and cons of doing business in China without having a physical location there and how you can work your way up to that point. The truth is that, to remain competitive, you need to be able to ship fast. So getting a warehouse on the ground should always be in the plans.

Episode Summary

  • ·“Chinese market is a big market, and they have a lot of consumers. They have a lot of private consumers that are longing for Western brands.” ·“... there's roughly 1.4 billion people. So it's a big market, right? When we think about comparing that to the United States, the United States is roughly 330 million. So you're looking at a market that's a little over four times the size of the U S market.” ·“So for a lot of B2B businesses, it might make sense as opposed to just the B to C that based on the body count, there are some hurdles and barriers to entering the Chinese market.” ·“If your products are already being sold in China on the marketplaces...then this is probably the first sign that it's worth going to China and selling it by yourself and even getting more money than through the vendors.” ·“So there are topics that you certainly do not want to talk about in China, if you don't want to infer with the, um, with the politics and with their decisions.” ·“You probably want to do the easy step first, which would be cross-border e-commerce. So you are not really physically in the country, but you're trying to get a foot in the door, which is possible through those e-commerce platforms that they have in China...” ·“There's a lot of complexity that goes specifically with this market because of the language, because of the size, because of the geography, because of the political climate.”
About the speaker

Marcus Pentzek

Searchmetrics

- Searchmetrics

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