Why Western Companies Fail in China

Western companies have a track record of trying to crack China and failing. Many of them have issues understanding the Chinese market, and as a result some of the biggest companies in the world have failed there.

It’s strange that massive companies like Google and eBay, even after putting millions in to their marketing efforts in China, with the smartest people in the industry working for them, could not penetrate the Chinese market.

This really is an eye opener for anyone opening a business. In spite of the millions invested in the Chinese market they could not compete with the local Chinese businesses. This is encouraging for local businesses in the United States. If the quality of their local product is good enough, and they build genuine relationships with their customers, it will be hard for a big company to come in and steal a substantial portion of their market share.

This infographic from Sign A Rama Toronto analyzes why western companies fail in China, and offers hope to small business owners who are worried that giant corporations are becoming too dominant.

Author: Wally Tomaszek is president at Sign A Rama Toronto. He is passionate about marketing and enjoys analyzing the effectiveness of a variety of marketing techniques.