Companies like Yum Brands may be starting to feel the impact of slower China growth in their earnings, but massive opportunities still exist there.
So, what's the key to successfully breaking into the China market?
In a recent panel I moderated on China's Internet and wireless sectors, a major company that is expanding into Asia stressed utilizing local talent, understanding the business culture before entering the region and partnering with businesses already established in China. In my discussions with law firms that specifically work with companies looking to establish a presence in China, the latter seems to be one of the most important elements that lead to success. Understanding the Chinese market can best be done by working with a company that has already interacted with the Chinese consumer.
Just look at eBay's failure to establish a presence in China as an example that what works in one geographic region may not necessarily work in another.
Sector focus is increasingly important. The wireless sector in China continues to grow at stratospheric levels. As high-speed wireless moves into China, companies are springing up to capture these opportunities. The growth rates are staggering. One executive of a private company that is focused on the efficient delivery of wireless data to cell phones coupled with advertising strategies to mobile users said they've experienced a growth rate of more than 100 percent. This is not a surprise given the increase in China¹s wireless adoption rate. Apple's recently announced massive earnings growth was, in large part, attributed to sales in the China market.