Western Brands Need Not Be Afraid
There is a lot of chatter and whispers of being wary about doing any kind of business in China. The discussions started during 2020, and now we are in 2024, and it seems like it's actually growing into a huge concern, one that can’t be ignored anymore.
Too Much Uncertainty
I think we can agree that there is a lot of uncertainty everywhere in the world right now, but it's very interesting that only a few countries get labeled “don’t do business” with them right now and others with similar issues get labeled “okay to do business with.” This is not a political piece at all, but it is very interesting. Although, that’s not what we are going to address in this article.
We are going to address the fact that brands are increasingly afraid of entering their brand into China. That’s the business we are in, so that’s what we are going to address. There are many reasons why brands are cautious about entering China in 2024. We aren’t saying that they don’t have the right to be cautious, but we believe their caution is making them miss out on a huge opportunity for the brand.
No matter what, China is ALWAYS a good place to do business. You have a country with that many people and a country that loves to spend money; those aspects aren’t going to change overnight. You also have a country whose people love western products and are always open to discovering Western products. That’s not going to change either.
The only thing that is changing is people’s perception and people’s fear. Everything is true as it was before the pandemic in China, so brands are letting these buzzwords get in the way of a great opportunity.
We saw a post from someone in the same industry as us, and she pointed out a recent Time article that purposely deemed a well-known German consultant as "tied up" in the "highest levels" of Chinese government. The implication in the article was that he is basically a pawn of the Chinese government, directing German companies to make decisions that only benefit the "evil powers" in Beijing.
In summarizing her point, she questions the fairness and accuracy of media portrayals of business relationships with China. She suggests that the media often sensationalizes and distorts the narrative to create controversy where there might be none, particularly when it comes to business strategies that recognize China's significant role in the global economy.
Opportunity in Adversity
It's essential for brands not to give up on China and the idea of doing business in China. Brands should focus on the consumers of a country and not get bogged down by geopolitical fears. The same scrutiny could be applied to every country, and no one would be doing business anywhere. The fear and uncertainty stirred by media narratives can cause brands to miss out on substantial opportunities.
While some brands are shying away, now is the perfect time for others to stand out. The current climate allows brands that are willing to take the plunge to gain a competitive edge and establish a significant presence in a market that remains eager for Western products. Embracing this opportunity could lead to substantial growth and brand loyalty in one of the world's largest markets.