West SMEs looking to establish closer connections with Chinese markets have been urged to persevere despite the slowdown in business confidence there.
Pete Read, newly appointed Director of Market Insights at the West of England China Bureau, believes slowing economic growth in China does not spell doom long-term business ambitions.
He said: “Figures published regarding China’s economic growth in the six week period between our own New Year and the Chinese New Year have triggered fluctuations in World markets and prices.
“But we are determined to ensure West firms looking to connect with the Chinese market will not lack opportunities to do business during the forthcoming Year of the Monkey.”
Pete, CEO of market information firm Global Growth Markets in Bristol, said: “Given the size of the Chinese market and the likely modest ambitions of an SME, the fact that economic growth has slowed there should not have much of an impact on a small company’s business plan.
“Decision-making may be slower and potential business partners in China more cautious, and immediate demand for some products and services will perhaps be more lacklustre than it was a year ago.”
Pete said business people need to appreciate the sheer size of China’s urban population centres – which are home to a population equal to eleven times the whole UK population.
“The addressable market for most foreign companies entering China is much smaller than the total market, and it is essential to identify the market segment or segments that hold real potential for your product or service.
“It is important to understand your potential customers and competitors. Consider teaming up with a local partner, but do your due diligence before signing any contracts, and don’t rule out doing it alone if that really looks to be the best course of action.”
“Combined with low costs, the large potential demand implies potentially huge profits. It is possible to build a big business there very rapidly, if you get the formula right.”
