Foreign businesses must adapt to Chinese tastes
Foreign entrepreneurs looking to take advantage of China’s economic growth may find that the odds are not always stacked in their favor.
In September 2016, Julian Wenger opened a restaurant called Pretzel Brothers at the south gate of the University of International Business and Economics in Beijing.
However, the outlet, selling German-style sandwiches, sausages and muesli, closed after three months.
“The biggest reason for the failure was that we did not localize our products and adjust certain features for Chinese preferences,” Wenger said.
He thought Chinese customers would be thrilled to have traditional German cuisine on their doorstep, but he soon learned that things have to be adapted to suit Chinese tastes.
Wenger was studying at UIBE when he started the business as a sideline with a schoolmate.
“We were inexperienced. Although we did some research in advance, we were not even sure if Chinese people would show any interest,” he said.
In 2012, Forrest Fabian Jesse founded the Beijing Xixuan Laboratory, focusing on the biological internet.
“Entrepreneurship is an incredible risk, one that demands that everyone be responsible, intelligent, diligent, willing to not sleep, to see a project through and expand their network,” the United States national said.
He added that some risks can never be managed, while entrepreneurship is an economic project, which means it is fundamentally unstable and competitive.
“Everyone can fail, and the best way to deal with the risks and stress is to find something you can finish and then complete it,” he said.
Saman Pouyanmehr, founder of the Global Foundation of Young Entrepreneurs, urged aspiring businesspeople to do sufficient research.
“Entrepreneurs need to know the problems and difficulties before they start their ventures, and always prepare themselves for the worst possible thing that could happen,” he said.
While the government has done a good job of promoting entrepreneurship, it has been less successful in the cultivation and education of potential entrepreneurs, and people should remember that entrepreneurship is not a single activity but a number of elements, he added.
There should be more inspirational forums, training courses, conferences, mentorship and team building for funding and networking in the future, according to Pouyanmehr.
Jesse said aspiring entrepreneurs in the US can look at successful businesspeople and be inspired by their achievements, which may help them to overcome difficulties.
“In the US, there is a whole culture that supports entrepreneurial activity. There are hundreds of stories about legends that have built their businesses successfully,” he said.
According to Jesse, entrepreneurs do not go to a place when it is fashionable: instead, they go to a place and make it fashionable.
“London was cool once. New York was cool once. Silicon Valley is still cool. I believe that China will be the next cool place,” he said.