Western Entrepreneurs Fight Recession by Going Online in China

Western businesses find the Chinese online market cheaper, easier, and more profitable to access than ever.

Entrepreneurs worldwide are fighting the global recession by building a web presence in China. Just a few years ago, reaching Chinese customers meant deep pockets and a lot of due diligence. But now, thanks to expanding online services targeting China, entrepreneurs can tap into the booming Chinese economy quickly and cheaply.

"Once I found out how low my downside was in building a web presence in China, I decided the risk was worth it," says Charles Jette, president of Jet Site, a graphics and design company. He echoes the sentiment of thousands of others who, facing declining revenues and slowing economies, began selling to the more than 280 million Chinese who are buying online.

Reaching this huge and growing market is a matter of visibility and accessibility. A westerner building a business presence in China must make sure his site can be seen, understood, and interacted with. This can involve registering the site in China, translating some or all of the content into Mandarin, SEO optimizing for Chinese search engines, and a PPC (pay-per-click) campaign. Usually some combination rather than all steps is necessary.

"I found out quite a few hits on my site were coming from China, even though it was all in English," says Joseph Scavera, who runs a visa consulting service in Sydney, Australia. "I got an English-to-Chinese translation for my web pages. A company based in China did my SEO on Google Hong Kong. I also bought a few hundred dollars' worth of Chinese online ads, which the company also handled. A few weeks later, I was converting those hits into customers."

No longer does it require a high level of web savvy to take the steps necessary to reach Chinese online consumers. Not with the growing niche of China-based companies that specialize in helping foreign companies build a web presence in China. Jacob Cooke, who has lived and worked in Beijing for seven years, helms WPIC, a one-stop online shop for all services necessary to bring Chinese online shoppers to western businesses. "People are amazed when they find they can start selling to China for the time and price of a small local newspaper ad," says Cooke. "My clients are definitely at the tip of a growing wave. The Chinese economy is booming, and more and more online Chinese consumers are ready to spend on quality foreign goods and services."

This Chinese consumer trend is the focus of the Bergstrom Group, whose online blog www.bergstromtrends.com focuses on young Chinese consumers, virtually all of whom make purchases online. Meanwhile, consulting giant McKinsey and Company, reports regularly on China's "internet obsession", and the seismic changes in their online buying habits, at www.mckinseyquarterly.com. Finally, Alibaba's Research Center estimates that Chinese online shoppers will spend 450 billion RMB, or approximately $67 billion in 2010. The growing numbers promise ample opportunity to western entrepreneurs, an opportunity that is faster and less expensive than ever.

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