Why Selling to China In Their Present Downturn Is So Hot

I want to mention yet another China Law Blog post. Find the whole thing here. This time I do it, as we have been talking about sales to China before, but not at a strategic level. Here is what Dan Harris said

Twice in the last week, clients told me that their China sales had greatly increased in the last few months due to (not in spite of) China’s economic and other problems.  One of these companies sells a high end (but definitely not top of the line) home item.  The other sells industrial testing equipment. Both have been doing business with China for years.  Both are getting not only seeing increasing sales, but they both are getting all sorts of new (and real) offers to distribute their products. Why?

I think it is because Chinese companies and consumers are starting to focus more on quality and value (defined as cost to quality/durability), as opposed to just price. I (and both of our clients) also think China’s new-found desire not to buy from Japan is also playing a major role.

Anyone who has been in China for a while knows that China is all about price. Naturally, the change to thinking quality did not happen overnight. It has been changing and IS changing. The trend is compelling and still on the move.

The tipping point has clearly been reached. By late last year, Chinese buyers in mass were buying just for quality in many cases, and it is spreading to more and more cases. In the slow down, people are being more careful to buy things that are good or safe or what not.

In this kind of seismic shift, Western companies are well positioned as we usually do not just talk price.

The time is now to succeed in China. In each case, a look at the particular issues for a product or service is needed, but the time is now to do more and better.


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Posted in: China, Chinese Culture, Market Entry

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