China: Seven Tips for solving the China-Challenge

Business location - China China: Seven Tips for solving the China-Challenge

18.02.2015 | Editor: Stéphane Itasse

The Chinese market has played a key role for many German machine building and plant manufacturing companies since the crisis years 2008/09. However in the meantime there has been disillusionment for many providers: The Chinese market has its own rules, an enormous competition intensity and often seems unpredictable.

Having a successful business in China is not natural for German machine building companies any more; there are several points to be considered now
(Phot: Deutsche Messe AG)

The ‘Made in Germany’ tagline will not be enough to sell products in the coming years. Only German machine building companies with a conclusive China strategy can grow with the market. To create a basis for the coming years, you must question your China strategy today itself using the following seven tips

Tip 1 – Get transparency about the relevant market in China:The machine market in China is very dynamic and is also greatly influenced by the economic policy. It is almost impossible to get adequate information from a distance for a sound marketing strategy. Even detailed market studies only serve as one of the many information sources. To avoid making a gut decision, the transparency must be created through a regular exchange between the headquarter and the subsidiary in China and with some visits to the key accounts.