Why is it so difficult for large companies to work with the Chinese?

Many people think that if a large company operates in the international market, then it is “knee-deep”. It seems that it can conquer any local market and take not only a leading position there, but even remove all competitors from it, including local ones. The problem is, it doesn't work that way. Indeed, such a company will have a certain advantage in some markets, but it can also play a negative role in others, preventing not only from starting to lead, but not even allowing it to stay in it. Why is this happening?

Why is it so difficult for large companies to work with the Chinese?

Business with Asians is not as easy as it sounds.

The secret to the success of large companies

First of all, it is worth understanding why large companies like Apple, Samsung, Amazon, Google and many others occupy such high positions in their own and international markets.

Let's remember where the companies started. For example, Apple started with computers, continued with them, and then expanded its business in a related industry, moving to tablets, smartphones, players and accessories, without forgetting its roots.

Google behaved similarly. She started with a search engine, and receives the lion's share of income from it. Of course, it is not the search engine itself that brings money, but related services, advertising and much more.

Over the years, companies have developed one direction, hired employees, specialists, prepared the market and thereby won the love and trust of potential buyers. There is a certain prejudice among European and American consumers that a brand should do its own thing. If he makes cars, he shouldn't go into pot making. The only exception will be collaborations for the release of a limited series of accessories, the main purpose of which is not to make a profit and to launch a new type of product. Examples include clothing, stationery, and consumer gifts.

Why is it so difficult for large companies to work with the Chinese?

After buying such a car, a German would hardly want to buy a waffle iron from BMW.

At the same time, the production of conventional TVs and air conditioners is the production of related types of household goods. The above does not apply to this. Although, this is the first step towards the Asians. After all, who is the most famous manufacturer of “everything for the house”? Not Samsung? Of course he is! And also Sony and some other less popular brands.

How do they do business in China

But the above-mentioned Samsung is the best example of chaebols, on which the entire economy of Asian countries is built. First of all, this refers to South Korea and started there after the Korean War, but something like this is indirectly present in China, Japan, and many other countries.

If we talk about South Korea, it can be noted that the whole world knows about thirty chaebols, their main economic indicators are announced every year. For example, it is known that in 1998 all together they accounted for 46 percent of all sales in South Korea in the industrial sector. Thus, chaebols largely determine the country's economic situation, and they also became the reason for the rapid development of South Korea after a long stagnation.

An example of the Chinese analogue of chaebols is Xiaomi, which under its own or related brands produces everything from flagship smartphones to toilet paper. Actually, the company was able to rise on this, although it was not the first brainchild of its creator, who tried himself in social networks and much more.

It is difficult to argue with this, and given the mentality of the Asians, whose loyalty, including the brand, is very significant. If they like their smartphone Honor, they are ready to buy everything under this brand – from jackets to condoms. This makes them feel like they are part of a big family. Of course, this is due to the mentality. Another manifestation of their mentality is that they are like a large anthill, in which everyone works and works for the good of a common cause. Given their potential, it's no surprise that they've fired like that lately.

Another reason many companies are unable to enter the Asian market is their approach to advertising. You've probably seen real Chinese or Japanese magazines, websites, products, or other design examples. You don't even have to go far for an example and you can just remember the crazy AR stickers in the cameras of Chinese smartphones.

Why is it so difficult for large companies to work with the Chinese?

This is not the strangest thing that can be found in Chinese smartphones.

They are used to it when everything is full of everything, when everything is bright and when there is a lot of everything. These are the features of their perception. If iPhone or Tesla the same Chinese can still perceive normally, then only the same Chinese can make sites for them.

This, for example, is an explanation of why Ebay failed to enter the Chinese market. Yes, the presence of Alibaba also did its job, but Ebay simply could not do what the Chinese would be close to.

Good Chinese goods

In the opposite direction, integration is bad. We simply do not accept what is normal for the Chinese. Although there are exceptions, there are not many of them. Especially if they were not originally created with an eye to the international market. Huawei and other smartphones cannot be cited as examples, since we only see Android, which has little to do with China.

The conclusion is simple. The Chinese, as the most numerous and brightest representatives of Asians, are very different from us. For mutual work, we need to be imbued with a mentality. Anyone who succeeds, reaches great heights in cooperation and discovers the market of the Middle Kingdom. Of course, there is also a closed market, but even this is not the most serious obstacle. Moreover, if you generally guess the code of the Asian, then not in China, but in South Korea or Japan, you can always find niches for business. Especially for large companies.

The main thing is that these companies are not so rigid. The only trouble is that such a colossus is difficult to turn off the path and it will be even easier for small companies along the way.

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