When you include failures and false starts, the real figure is more like 1 in 10,000 (or even 20,000).

Given the high expectations of brands that enter China, that fact is rather sobering.

The cost to run an e-commerce operation in China is HIGHER than in Europe.

Even 1 million Euro GMV isn’t profitable for brands in most categories. In denim, for example, you need AT LEAST 3 to break even.

So it always amazes me how LITTLE strategic planning is done by the people responsible for the success of those projects.

Sure, they may pay a naming consultant, talk to agencies or spend a little time checking out competition…but they’re neglecting what REALLY matters.

If you are a brand, a simple focus on the key relationships that drive success can dramatically improve your odds.

If you are honest and practical, these questions may haunt your dreams:

  1. Does your brand have traction?
  2. Do you have the right resources?
  3. Is your position defendable?
  4. Can you keep up with China’s intensity?
  5. Can you do it at “China speed”?

If you answered “no” or “not sure” to ANY of the above, push pause and address the problem before you move forward.

#China #Ecommerce #Tmall #Taobao #Failure #Success #InternationalBusiness