Global Market

Categories: General

When I read WSJ*, it occasionally mentioned company trying to do business in China. Some of these companies success and some exit miserably. The companies that exiting the China market usually because of regulation imposed to them making them difficult to succeed.

However, I was wondering why every company needs to go China even when the regulations are very difficult to comply with?

The population of China is 1.3 billion. It is a very lucrative market, of course, because of the growing middle class.

If your company is located in the US, let's say you already completely dominate the US market, you will have 318.9 million customer. The next you can go is Europe, which has 742.5 million people. If you already dominate US and Europe, the next you can go is India, which has 1.2 billion people. If you now dominate US, Europe, and India, you can next go to Africa, which has 1.1 billion people.

The world has 7.4 billion, excluding China is 6.9 billion. If your product can reach 6.9 billion, it's a very successful product.

Of course, it's a very utopian thinking, but my point is, why putting so much effort going into a market where its government interest is to let you in, give you unfair advantage against its local company, and kick you out afterward?

*WSJ is provided freely at work.

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