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:
- Does your brand have traction?
- Do you have the right resources?
- Is your position defendable?
- Can you keep up with China’s intensity?
- 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