A Shanghai slingshot for overseas expansion
Government services help clear obstacles for companies entering foreign markets
Going global — a pressing goal of many Chinese companies — is not only about grasping the big picture.
Nuanced details, such as what can be demonstrated in a product commercial, for example, may jeopardize a company's future prospects in an unfamiliar new market.
With eight years' experience in overseas markets, Shanghai-based gaming company Boke Technology learned this lesson, said the company's general counsel Wang Sijia.
One product commercial for a Southeast Asian market featured exaggerated creative content. It depicted a hamburger that had accidentally fallen on the ground being stepped on, which may have been construed as disrespectful due to cultural sensitivities. Wang said sometimes it's difficult for companies to make such fine distinctions.
However, this is one of the smaller challenges Chinese companies may be confronted with when they enter a new market. Abiding by local market entry regulations and contract formats are even larger issues, she said.
"The biggest headache about going global is the information gap. Companies do not know who to turn to or what they can do when a problem occurs," she said.
When publishing companies enter a new market, for example, they often have to work with local service providers for the first time. Without access to reliable information or experience in collaboration, it is extremely difficult to find the right partners.
A company's own internal risk management capabilities are usually insufficient, Wang added. "The cost of trial and error can be prohibitively high," she said.
