Small Businesses’ Advantages Of Expanding To China.

James Love

China's Ecconomy, Social Commerce

February 28, 2019


How to be operate a successful small business has drastically changed. In fact, the blueprint on how to create a successful business has radically changed within the past 10 years. You can now plan on owning a small business in the United States and selling globally from the beginning. The days of relying on trade shows and big orders from massive retailers for your company to go global, are long gone. In thanks to the power of the internet and social commerce, especially if you’re looking to sell to China. Social Commerce is extremely big in China and is a great way to grow your business and sell internationally.

The Fear of Selling To China

For many years US brands did not see the value of expanding to China. China maintained a relatively untouched market from US brands due to the following: fear of losing brand identity when going global, the great firewall, not fully understanding Chinese purchasing behavior and not being to the shift to mobile payment. However, the potential is now infinite for China, it is one of the biggest economy with over a billion in population China economy is progressing from a manufacturing driven economy to a consumer driven economy. While China middle class is seeing an exponential growth due to the amount of high paying tech jobs in China’s urban areas. Creating an accumulation of wealth.

Now is the time for US brands to begin to establish itself in China! A new generation of consumers have emerged and now dominating the market. Different from past generations, they have a desire for US Products and premium goods. They’re are also way less fugal than previous generations, they are now making more than previous generation and aren’t afraid to spend it. Especially if the product is marketed on their preferred social media app.

The Power Of The Internet

Just like anything the internet comes with its’ advantages and disadvantages. While the internet has broken down many barriers, making it easier for companies to sell their product and be customer facing. The internet has birthed many massive ecommerce sites such as Amazon and T-mall, that have made it harder for smaller business to keep up with low prices and efficient logistic practices
The rise of ecommerce has made selling globally more accessible. Motivating many retailers to shift to an ecommerce forward or stray away completely from traditional brick and mortar stories when seeking to expand into global markets. Avoiding the high cost of brick and mortar and selling on ecommerce platforms like WeChat Store, can really propel brands forward globally. With such a low overhead cost and over a billion consumer to market to this opportunity could be extremely lucrative. WeChat Stores unlike many other platforms aren’t overcrowded and relativity easy to create.
The internet has also allowed local business to write their own path. One of pivotal assets for small businesses that wasn’t around a decade ago, is to be plan create and sell globally from day one. Giving the power back to small businesses who no longer must rely on sales from a global retailer to support to go global. Completely changing how doing business globally, especially in China. The ability to sell directly to your consumers and be customer facing in the global market allows you to capture a lot of useful data. That can be used to better understand your consumer and how-to best market to them. Creating a long-term goal of learning how to efficiently and effectively find your niche market, while continuously marketing and selling to them.

The Power of Social Commerce

As an Americans it can be hard to fathom but, social media and social commerce is even bigger in China. In fact, WeChat is one of the most preferred social media platforms, that has even been coined the term ‘super app’ because of all the numerous features on the app. With over 900 million users, more than any other popular social media apps in the United States like, Facebook, Instagram or Twitter.

Understanding how to utilize social media and social commerce, is a must for companies seeking to expand to China. Being able to capitalize off WeChat’s billion users, can be a game changer for a small business. Providing the momentum for a local company to successfully propel them into a new market.

Like the United States the use of Influencers or as referred to in China KOL’s (key opinion leaders) are an extremely effective way to market your products. Equally as popular in China as it is in the United States, choosing the right KOL’s can be tricky. Done right you can attract a plethora of new consumers in a more organic way. As an American using knowing how effectively utilize social media, Influencers/KOL’s and social commerce to connect with new consumers can be extremely profitable and seemly easy.

Leave a Reply

Your email address will not be published. Required fields are marked *