Is it possible to grow my business into a multinational? This is the primary question at the back of the mind of every entrepreneur. The answer is “yes,” and this is evident with top brands that have gone to China and rapidly grew into multinationals. China is like leverage that every entrepreneur can rely on for rapid growth, and you, too, should not be left behind. Keep reading to understand the Chinese market and strategies you can employ for faster growth and success.
The Chinese Economy is Growing Rapidly
One of the reasons that make China an excellent jurisdiction for leveraging your enterprise’s success is that its economy is growing rapidly. Since 1979 when China adopted economic reforms, its GDP has grown at an average rate of about 8-10%. Now, the World Bank is predicting that China could overtake the US and become the largest economy on the globe by 2030.
Your company in China should take advantage of this steady economic growth to grow profits for international expansion.
Remember that even when going global, your company will need a lot of support, especially during the first year of operation. Experts would strongly advise that you rapidly expand in various Chinese markets, perhaps growing presence in different cities, and then expanding abroad.
According to Adrian Cheng, every entrepreneur should be innovative and focused on improving both the product and market share of the company.
Take Advantage of the Regional Market
When operating a company in China, one of the crucial steps of going global is starting with the neighbouring markets. China is strategically located in Asia, implying that most of the neighbouring markets are within reach.
So, which one do you want to start with?
If your company makes medical equipment or deals with pharmaceuticals, Hong Kong, Malaysia, Japan, and India have a very large market. These are easier to reach out to before extending to others, such as the Middle East and Europe. So, start by reviewing the targeted neighbouring markets to determine how effectively your products can help to solve their challenges.
Use Bilateral Trade Agreements to Reach Larger Market
To quickly reach out to the international markets, China has cleared the path by signing multiple bilateral trade agreements. These agreements are meant to help companies easily access multiple markets across the globe with no or fewer limitations. Some of the international markets you can access when running a company in China include:
- ASEAN members.
Work with Experts to Draw the Right Strategies for Success
Sometimes going abroad is limited by the strategies that investors have installed. For example, if your company only focuses on the local market, it might be difficult to conceptualise going global.
This is why you should bring on board some experts to help redefine the strategies of the company.
The impressive thing about working with experts is that they can hold your hands until your company’s international expansion becomes successful. For example, they might recommend opening and running a branch office in the UK instead of partnership. This will give you greater control over the running of the subsidiary for faster expansion both in the UK and the entire EU.
As you can see, your company in China has a number of options it can work with for faster growth and become multinational. So, if you thought that going global is impossible, it might be way easier using the methods we have listed above.