2024 is already here – Have you solidified all your business plans and strategies for your China business?
If the answer is ‘no’ – It is not too late. While 2024 has already begun, the upcoming weeks leading to the Chinese New Year festivities (and challenges), marked by a slower business pace present a brief window of opportunities to look back at 2023, reflect, finalize plans, and polish strategies for the new year.
So, whether your China plans stand ready or still developing, we prepared several recommendations you might want to follow. Check them out.
Two apparent yet contradictory business trends in China in 2023
The beginning of 2023 brought positive developments for companies doing business in China, marked by the announcement of lifting all COVID-19-related policies in early January. This dramatic shift was anticipated to reposition China as a lucrative business destination, with brighter economic forecasts and new government initiatives to support growth and foreign investment.
Indeed, the business community in China enthusiastically embraced the changes, and, quite literally, got back to business. Industries that had faced stagnation during the pandemic began to recover, consumption went up, and offline events were resumed, with the 2023 CIIE setting new records. Overall, China’s GDP expanded a robust 5.2% on average YoY in the first three quarters of 2023 (Source: China Briefing).
Despite these positive developments, the general corporate sentiment remains complex. The AmCham annual survey (the American Chamber of Commerce), published in September 2023, indicated low optimism among international companies in China, and the EU Position Paper emphasized the necessity of rebuilding trust for global companies in the local market.
In short, two forces met on the grounds of the business playground in China in 2023, one side eager to work, push forward, and do business, while the other remained cautious, and kept its cards close before rushing into the new adventure.
>> Read more – Don’t close your WFOE in China – freeze it!
What can you do to empower your China operations in 2024?
Better prepare for exhibitions
Exhibitions, in-person meetings, and the ability to travel again without restrictions were some of the blessings of 2023. But after three years of primarily online work, we all got somewhat rusty. Therefore, a key priority for your China team in 2024 should be more thorough preparation for trade shows and exhibitions. Either as a participant or a visitor, there is much you can achieve from exhibitions in China, especially for B2B companies.
For instance, events are an excellent platform to initiate connections, and in China – connections are everything. A veteran sales manager with over 15 years of B2B sales experience in China, says: “You should try to engage in conversations and schedule one-on-one meetings for further introduction that could potentially lead to future collaboration.” Another insider tip from the same manager is – when it comes to preparing for events you better adjust your story framing according to the event theme. Practically speaking, find an effective way to tell your story by considering the type of event and the interests of its participants – is it an industry event where the audience is savvier of the technology, or a business-oriented event that is focused more on branding and partnerships? By telling the audience what they want to hear, in the style they want to hear it, you get a fantastic stage to market yourself and enhance PR in those events.
Building connections and distribution channels are the bread and butter for B2B companies, so you definitely want to do it right. Learn about our online and offline exhibition support.
Our services assist international companies in the Chinese market. Contact us
Don’t neglect your brand – Explore digital and social media marketing in China
Most B2B companies believe marketing is less relevant to their business than sales. But in fact, you should question that myth. Even for B2Bs, you still do business with people. And when it comes to people, branding plays a significant part in the decision-making process. Furthermore, branding goes a long way, particularly in China, where the concept of ‘Face’ is deeply rooted in the culture.
You would be surprised at how much you can do to build and support your brand in China without breaking the bank. The most obvious strategy is, of course, tapping into WeChat. A WeChat official account is indisputably the most important marketing channel in China and is THE number-one brand awareness booster. Specifically, B2B companies in China can use WeChat to find new potential clients and partners, stay connected with industry colleagues, host training sessions or live-streaming product introductions, invitations to meet at exhibitions, and more.
The digital marketing sphere as a whole presents multiple opportunities for global B2B companies to seize, including lead generation through landing pages on Baidu, and digital magazines and forums, to name a few.
Keep up with changes
Registering a business in China and its day-to-day management pose multifaceted operational challenges for global managers – from HR management, through accounting and finance, to trading and marketing. These complexities stem not just from geographical distances, but also from cultural disparities and a lack of familiarity with the distinctive local business environment.
Given these hurdles, international managers in China must stay well-informed about the dynamic changes in the business landscape, the regulatory environment, and the cultural preferences. Staying attuned to local developments can prove pivotal in smooth operations, ultimately allowing you to direct your business more strategically. To do that, you could join local networking events, workshops, and other meetups. Add these events to your travel schedule when visiting China, or have your local team attend and report on the content.
Some places to get started:
- Attend PTL Group’s quarterly Partners Network Event in Shanghai, an opportunity to exchange knowledge and perspectives on the current economic landscape (to join contact: marketing@ptl-group.com).
- Contact us for details on our workshops, available both online and in person.
- Subscribe to our quarterly China Business Newsletter for valuable insights.
- Access the Chinese Holidays Guide. Get important dates & HR tips for strategic planning for the Year of the Dragon.
As always, our international team at PTL Group is here for you for questions and inquiries about China’s market entry and operational support in China.
We wish you all a happy and fruitful 2024!
The PTL Group team
