I really believe that China is one of the world’s biggest and fastest growing consumer market, but it seems that a great number of major overseas retailers have to struggle in this market.
Of course there are a lot of successful examples, such as Apple. It’s been reported that Apple’s store in Shanghai, China sells more iPhones per square foot than any other store in the world, despite the phone being priced 30 percent more than in the United States. However, data also shows that 48% of all foreign business operations fail within two years of arriving in China. Examples come from Best Buy and Home Depot.
People may ask why?
“It’s a lack of understanding of the legal and cultural environment that leads to most failures,” says Shawn Mahoney, managing director of the EP China consulting group. “The only difference between a success and failure in my experience is that people who are successful are more willing to talk and learn about how things work on the ground.”
Click picture below to read a article about how four of the biggest US companies lost their way in China. And gain knowledge and experience in doing business in China.