At the GMIC Lu Gang, Founder of Technode led a panel discussion on the subject of Chinese companies going global. Here are the key insights from leaders of real Chinese companies in the mobile space operating in the global market.
What is the driver for Chinese companies expanding into overseas markets?
According to Wei Dong, VP of UCWeb, the drive to go global is rooted in the company’s goal to have more than half of the population use their UC Browser. In order for UCWeb to reach their goal, UCWeb has to think beyond China. In contrast Wang Jialiang, Co-Founder & CEO of Cootek, suggests that foreign markets offer better business models. His small company is already turning a profit but may not have succeeded if it started in the Chinese market first.
What is the difference between foreign markets and the domestic Chinese market?
Ren Weiguang, President, HTC China suggests that foreign markets offer unique business opportunities. In the handset space, the US market allowed HTC to focus on the up-end market for handsets selling at $300+. Wang Jialiang then painted an interesting comparison between the US and Chinese market. He suggested that good products sold in China require a greater level of advertising compared with selling good products in foreign markets.
Other advice offered by the panelists:
Wang Jialiang, Co-Founder & CEO, Cootek – Chinese companies need to maintain originality. A copycat strategy will not help a Chinese company to go global, instead the company should pioneer new ideas.
Michael Song, CEO, Sky-Mobi – A team has to be localized and a foreign team is needed to do foreign business, and a Chinese team is needed to do Chinese business.
Wei Dong, VP , UCWeb – Companies should think globally and act locally.
Wu Taibing, Founder & President, Wondershare – is convinced of the global demand for Chinese products and services from abroad.
(Kevin is a MBA exchange student in Beijing and guest writer for mobisights.com)