China’s online market is now the world's largest after several years of double digit growth. Many companies have managed to ride the wave and capitalize on the online frenzy. Small and medium-sized companies are increasingly taking on the market as well.
But China can be a daunting market for an exporter. Not only is everything from regulations, branding and marketing different to what you may be used to, but China is also a fast-evolving environment. Change can happen so quickly in China that the future arrives before the past is fully stripped away!
We thought it would be helpful therefore to share some of our experiences with exporters successfully doing business in China using online tools. Here are our top tips on how to get started in China in the online world.
How secure is your brand and website in China? Register a “.cn” domain name.
Companies looking at China are often worried about their IP (Intellectual Property). Getting your online footfall is the best way to secure your existence in China. Consider registering ".cn" domain names to secure your brand, company name or trademarks and protect yourself from scams.
The China Internet Network Information Centre (CNNIC) is the official Chinese government body with this responsibility and they have accredited overseas registrars for foreign applicants. While CNNIC have kindly listed out many registrars, not all are created equally. If you don’t know which registrar provides the most hassle-free service, get in touch with us as it's always good to seek advice from a trusted partner who does.
Another thing you need to consider if you are planning on hosting your website locally, is your Internet Content Provider (ICP) licence. An ICP license is a state-issued registration that allows a China-based website to legally operate in the country. This is required for most websites, but is an absolute must if you are planning an ecommerce website.
But there is a catch - in order to be able to file for your ICP, you are required to either have a business branch with registration in China, or at least have some form of local representation to be able to obtain the licence. If this is not possible, you can still localize your website for the Chinese market, and make sure your brand in prominent in your audiences minds, but you will need to host the website outside of Mainland China, which might incur in slower load times.
Moreover, as of January 1st of 2019, all foreign companies starting a business on an E-commerce platform in China must have a Chinese business license, which means they need to set up a Wholly Foreign Owned Enterprise (WFOE) in China.
Be mobile.
Mobile use in China makes a lot of other markets look like they are trapped in the past. Any visitor to China will immediately be struck with the ubiquity of the smartphone to the Chinese consumer. If you think westerners are addicted to their phones, wait until you visit Shanghai or Beijing: Chinese people live life through their mobile phone. The question asked in the west is: what is your strategy for mobile? In China, mobile is the strategy.
If your website is not mobile-friendly, make it a priority. Read our blog on how to go global with your Chinese website for more inspirations.
Baidu is not Google.
With Baidu, search engine optimization (SEO) is a completely different beast. The way the first page of a Baidu search is typically so unhelpfully structured that users habitually click on the next page to find organically high-ranking content. What shows up instead? Baidu Answers, Baidu Baike (an encyclopedia), Baidu Baijiahao (a service pulling content from other sites whilst keeping users on Baidu), paid ads, etc. Very un-Google.
Baidu’s heavy handed inclusion of their own sub products within SERPs would potentially cause conflicts with competition laws in the EU, but not in China. New laws in China have significantly reduced the amount of ads in Baidu’s SERPs, but there are still quite a few.
WeChat is not Whatsapp, far from it.
If you have not heard of WeChat, download it immediately. WeChat is not the Chinese equivalent to any social apps. There is nothing quite like it in the west. Social platform aside, users also use WeChat to pay utility bills, rent, transfer money to friends, make payments at restaurants and shops.
In terms of messaging and social sharing, WeChat is completely private. If you see a photo or video shared by a friend and comment, only people who are friends with both of you will see that interaction. Everyone else sees just the photo.
For businesses, official accounts can send out photos, articles, videos, games, audio messages, and chat with followers – all through a private conversation with each person. Businesses can also accept payment and do customer service directly through the app. You should know that while users only access the WeChat app on their phone, businesses manage their WeChat accounts via PC. Confused? Contact us to get inspirations.
Weibo is not just Twitter.
WeChat is a great social media app from a user's perspective. However, building a follower base as a business on WeChat is not easy. Weibo offers various affordable paid ads opportunities. But don't think that a campaign approach which worked in the west will automatically translate with the same results to a similar demographic in China.
Local knowledge, insights, data and analysis of the market and its segments are key. Audiences must be carefully understood and user profiles created, so that western brands can picture a typical target end user when seeking to engage on Weibo.
Video is the king.
Chinese consumers want content-driven campaigns while Baidu wants content-driven search. Video is a must-have in China. Everywhere from WeChat, Weibo to your website, pages with video not only get more clicks, they get more conversions. Why? The story drives brand recognition which helps viewers engage and understand complex concepts.
While it’s a good idea to re-use content, you should expect to devote resources not just to translating what you have but creating new content with extra emphasis on your company's story and why a user in China should care about you. And remember, YouTube is banned in China so you have to use the Chinese equivalent.
You cannot do China without a native Chinese.
The bottom line is that you cannot do China without a native Chinese speaker. The operation interfaces of Baidu SEO Kits, WeChat and Weibo are all in Chinese. Did I mention that you also have to go through a long administration process to get on WeChat and Weibo as a business? Don't even get me started on hosting a website in China...
