McDonald’s in China

For quite some time now, there has been a visibly growing fascination with the West in China. It is especially evident amongst the younger generation that incorporates Western fashion, lifestyle, and cuisine into their everyday life. The well-known fast-food chain McDonald’s is one of those Western brands that has managed to enter the Chinese market successfully. In fact, McDonald’s is currently one of the most popular fast-food chains in this country. Therefore, it might be interesting to see how McDonald’s in China has evolved over the years, as well as how the Western brand managed to maintain its popularity over time.

McDonald's in China
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KFC in China

KFC (Kentucky Fried Chicken) is an American chain of fast-food restaurants founded in 1930. The restaurant attracts plenty of customers in many countries worldwide. How does it look like in China? In one of our previous articles, we mentioned that it is KFC (肯德基 – Kendeji) that has the most extensive reach among all foreign brands present in China. How did the brand manage to achieve such success?

KFC in China
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Lego in China

Lego is a prestigious toy company that likely needs no introduction, as most of us have probably encountered this Danish brand’s products before. Because Lego’s target audience is children, it is only natural the brand is investing more and more into the Chinese market. There are about 200 million kids in China, and after the one-child policy was abolished, the number of consumers can only go up. The Chinese middle class is continually growing and tends to purchase foreign products, which results in plenty of parents gifting their kids Lego toys. Lego in China is rapidly growing every year, being present in many children’s childhood.

Lego in China
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Exporting products to China and preparing for the Chinese market

More and more Western companies decide to start exporting their products to China. Many of them produce and export foods such as dairy products, sweets, or alcohol. When doing so, it is essential to know that the exported food needs to have the right certificates. Besides making sure the product fulfills all formal requirements, it is crucial to adjust it to Chinese consumers. In this article, you will find useful marketing methods that will help you sell products, especially foods, on the Chinese market.

Exporting products to China
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Tmall – how to sell on Tmall?

The dynamic development and openness to cross-border sales have made Chinese e-commerce dominate. Europeans are buying on a large scale on Chinese e-commerce platforms, and the Chinese are increasingly willing to open up to cross-border shopping. Selling on Tmall, the largest e-commerce platform in China can be a hit for those interested in exporting to China. By 2018, more than 14,500 international brands from 63 countries were selling their products on Tmall Global. 80% of them were introduced to the Chinese market for the first time.

Tmall
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Global brands in China

The Chinese market is still opening up for foreign products. The development of global brands in China is gaining momentum. Leading companies have plans to open a large number of branches in China in the upcoming years. Foreign brands are popular, especially among the Chinese middle class and the young generation. The Chinese are craving the American lifestyle which results in the popularity of such brands as Starbucks, Apple, and KFC. Purchasing American products is an indication of social status and wealth.

The infographic below shows the most popular global brands in China. Among the foreign companies with the most significant number of branches in China, we can find examples of the American chains (KFC, McDonald’s, Starbucks), the European chains (H&M, Carrefour, Sephora), as well as Japanese ones (Uniqlo, Lawson).

Global brands in China
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Big Order Scam

A Big Order Scam is a common type of business fraud. It has been used by scammers in China ever since China opened its borders to foreign trade. Surprisingly, despite many warnings and raised awareness of these scammers, a lot of naive entrepreneurs, blinded by possible big profit, still fall for this old trick. If you don’t want to be one of them, read how Big Order Scam works and you won’t get fooled.

Big Order Scam in China
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Chinese food market rises – and so are the food prices

Not long ago, the share of imports in the Chinese food market was very low (4% in 2007). But the situation changes very fast. The purchasing power of the Chinese people rises along with the appetite for imported food and beverage. The volume of imports is so big that it has a direct influence on global food prices.

Agriculture remains to be a vital industry in China, but its production output cannot meet the rising demand. Local agriculture was heavily affected by the development of the industry. Vast spaces of agricultural areas were polluted, the shortage of water also results in the abandonment of more fields that slowly turn into deserts. Meanwhile, the annual growth rate for the food industry is 15%, and the consumption of meat has risen. Furthermore, the rich Chinese are even more fond of foreign products, including wines, salmon, or chocolate.

Chinese food market
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Chinese alcoholic beverages – market possibilities

China is the world’s biggest consumer of alcoholic beverages. For many years, the Chinese people preferred the products of their national industry, but recently the structure of demand changed rapidly. While the shelves of Chinese supermarkets are still filled with expensive ceramic jars with baijiu, nation’s most revered high-alcohol rice vodka, more and more Chinese are learning how to enjoy red wine or imported beer.

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Export to China – types of business presence in China

Registering a company in China is still a relatively complicated procedure, despite the fact that the People’s Republic of China authorities are struggling to make those procedures easier for foreign businessmen. In China, there are four basic types of business presence. We need to keep in mind that every province has its own distinctive features which should be analyzed before choosing the place for our business. Every potential investor should evaluate his time and financial capabilities before making such decisions. As the opening business in China may take a lot of time, we present some basic modes of operation accompanied with the short description. While registering the company in China, we should seek help of the professional companies and institutions which already have the experience in this field; they will help us to choose the most suitable type of business presence.

Representantive Offices, RO

The main advantage of this type of business presence is the low cost, this type is the most popular among the foreign entrepreneurs. It enables them to obtain residence permits. There are several disadvantages though: ROs do not have legal personality, they cannot issue invoices, the personnel must be employed through the governmental agencies. This type is chosen mostly by companies which are performing market surveys or are overseeing the Chinese contracting party (ie. factory) while importing from China.

Types of Business Companies

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