8 Steps to successful B2B Partnerships in China

Entering the Chinese market is a challenging and long-term venture. Establishing an effective business model, knowing the regulations, finding a suitable Chinese partner, launching your brand, training the team in China and in the home country and understanding the fast-evolving Chinese market and its typical business practices, are all important factors that make market entry into China both time-consuming and work-intensive.

Over the past 25 years of our experience in China business development, we have gained a deep understanding of the market and witnessed the challenges of hundreds of foreign companies entering the Chinese market with varying degrees of success.

Hereunder we share our insights into successfully establishing B2B partnerships in China. These are the eight critical steps to unlock B2B opportunities in China:

• Setting your objectives
• Identifying Potential Partners
• Establishing Initial Contact
• Building Relationships
• Negotiating and Formalizing Partnerships
• Marketing and Promotion
• Training and Support
• Monitoring and Evaluating Partnerships

Let’s investigate each of these steps more in detail.

1. Setting Your Objectives

Questions need to be answered, such as: Is your company ready to enter such a challenging market? What are your expectations in terms of time to achieve your goals? How much are you ready to invest? How important is China for your company in your global strategy? How much risk are you willing to take? How much do you know about the Chinese business culture? Which distribution channels to use? Who are your customers? How to integrate social media into your China strategy?

2. Identifying Potential Partners

Secondly, it is crucial to understand who you want to work with, and why. Try to identify key decision criteria which are important for you and which could help to draw the ideal profile of the potential partner you are looking for in China. For example: are you looking for a private company or a state-owned enterprise? Shall it be a big company or rather a small or medium-sized company? Is it OK if they are already selling similar products or not? Are they cooperative and willing to share information with you in a transparent way?

These questions all seem quite common sense, but in our experience, we often see that companies don’t take sufficient time to consider these questions before going to China. If you still want to go to China after the above evaluation, make sure you already register your trademark in China.

Once you have set the most important criteria, we use Baidu, WeChat and other Chinese sources to scan for Chinese companies, agencies, firms, and other relevant organizations in your industry to identify partners that hold synergistic potential for your business. Afterwards, we prepare a shortlist of potential partners, which are then screened on their performances, their activities, their reputation, etc.

3. Establishing Initial Contact

Once potential partners are screened and identified, the next step is contacting them. We help you to create a concise partnership proposal, which emphasizes the mutual benefits of your collaboration. Keep in mind that English may not be spoken by everybody, and that email is less commonly used. In China, the mode of communication is WeChat. For cold calls in the Chinese language, personal connections, events, and more, the assistance of a China specialist is definitely required.

4. Building Relationships

As you may know, in Chinese business culture, relationships hold immense significance. To build long-lasting and impactful relationships, a tailored approach is recommended. This can include several face-to-face meetings, attending China business networking events, and actively networking with potential partners. Building a strong relationship is the foundation for successful B2B collaborations in China.

5. Negotiating and Formalizing Partnerships

Negotiation is an art, especially when it comes to business partnerships in China. If you require assistance with this step, an experienced B2B matchmaker like Horsten can help. Engaging an expert who speaks the language in the negotiation process can be a deciding factor for success.

The experts at Horsten are experienced in negotiating mutually favourable terms while prioritizing our client’s needs and interests.

6. Marketing and Promotion

After the above steps, digital marketing strategies can be developed to maximize reach in the Chinese market, enhance brand visibility and credibility. Make sure to include the latest social media trends, data-driven insights, and market feedback.

7. Training and Support

Professional business representation is key to sustainable partnerships. It is crucial that you train your Chinese partner in a good way and give them any necessary support. If you would like help with this step, the specialists at Horsten can provide comprehensive training and support. This ensures that partners are well-equipped to represent your brand effectively, maintaining consistency and quality in service delivery.

8. Monitoring and Evaluating Partnerships

The journey doesn’t end with the establishment of partnerships; it evolves. Set up performance metrics and conduct regular review meetings with your B2B partners. This proactive approach allows for continuous improvement, ensuring that partnerships remain dynamic and responsive to market changes.

Conclusion

To sum it up, by choosing the right business model and the right Chinese partner, risks and investments can be kept under control and your company can build a long-term sustainable business model in China. In any case, when planning to enter the Chinese market, it is crucial to always have a long-term vision and strategy to tackle this market in a sustainable manner.

As far as we are concerned, no matter which business model is chosen, the entire Horsten team in Belgium and China is available to help your company with your China project.