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Why brands fail and succeed in China? By Màrius Rossell, CEO and Founder of LogiCommerce

20/11/2023
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In a dynamic and candid presentation, Màrius Rossell, the visionary CEO and founder of LogiCommerce, a Headless eCommerce platform, delivered a compelling speech on "Why Brands Fail and Succeed in China," drawing on his extensive experience in the country.

With China's market notoriously difficult to crack, Màrius’s insights offer a roadmap for brands eyeing success in this economic powerhouse.

Understanding the Chinese Market Landscape

Màrius observed that the Chinese market had experienced a 30% decline in the presence of foreign brands, resulting in the disappearance of premium brands from malls. As a result, luxury brands now dominate the market. This shift illustrates the importance of understanding the local market—a lesson hard-learned by brands such as Media Markt and Forever 21, who failed to adapt their strategies to Chinese consumer behaviors.

Since relocating to China in 2010, Màrius has witnessed firsthand the ebb and flow of international brands within the market. Despite the challenge, his recent tenure as the president of the Spain Hong Kong Business Association underscores the strategic role Hong Kong plays in bridging businesses between China and the rest of the world.

The Playbook for Market Entry

Màrius’ strategy for conquering the Chinese market emphasizes a "step-by-step" approach. He advocates for leveraging Hong Kong as a launchpad, focusing on cross-border commerce before diving into Mainland China. He argues that this allows brands to test the waters, gain consumer insights, and adjust strategies without the heavy investment typically required for mainland market penetration.

Adapting to Local Market Nuances

The quintessential lesson from Màrius's discourse is clear: success in China requires brands to "become Chinese" in mindset and operation. Brands must grasp the local culture, consumer behavior, and marketing nuances to create a resonant and authentic presence.

Digital Footprint and eCommerce Strategies

Navigating China's digital landscape is non-negotiable. From understanding cross-border eCommerce to establishing a presence on third-party platforms like Tmall and JD.com, brands must be savvy in how they deploy their online resources. However, Màrius warns of the challenges, including the need for an ICP license and the complexity of driving traffic amidst fierce competition.

The Final Verdict

Màrius's speech serves as a beacon for any brand aspiring to make its mark in China. His experiences reveal that while the journey is fraught with challenges, a meticulous, informed, and culturally attuned strategy can lead to success.

His parting wisdom is an adage that resonates across his narrative: before becoming a dragon in China's formidable market, one must endure as an ant, with patience, resilience, and a willingness to adapt.

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