Top 5 Barriers for Exporting to China

Top 5 barriers for exporting to China

Compliance costs, a lack of resources and difficulty in creating personal networks are among the biggest challenges faced by SMEs when exporting to China, according to new research.
Victorian Employers’ Chamber of Commerce (VECCI) Export Services says knowledge of the local market and local culture and language are also barriers for Australian SMEs doing business in China, which VECCI says is home to 300 million middle-class citizens.

The challenges faced by SMEs looking to export to China has led VECCI Export Services to establish the China Ecommerce Platform, an online platform for Victorian exporters of non-perishable food and beverage in partnership with Shanghai-based Yiguo E-Commerce.

Patricia Griffiths, head of international trade for VECCI, said while VECCI has been building relationships in China for 19 years, the association started looking at trends in the Chinese marketplace over the past two years to find a way to help small exporters dip their toes in the water.

“Over the past two years, we started to look at trends at what was happening in the middle class and also purchasing power, and how people buy things,” says Griffiths. “And more and more we started to recognise more Chinese with middle incomes are doing exactly what we’re doing: looking online to buy,” she says.
green shipping boat with shipping containers
Businesses need to first ask if their product will be suitable for China, and if so, where the best place within the country to focus their attention is.
This is possible with display ads – here are some key tactics to consider when evaluating the potential of display ads for your business.

1. When will it be shown?

As noted, display ads often seem random and unrelated to your interests. But they can be targeted more specifically, and not only to certain websites, but to specific users at certain stages of the buying cycle.

This is particularly beneficial for re-targeting. Re-targeted ads are the ones that show up after you’ve visited a website – you look at a pair of sports shoes on eBay, and the next day there’s an ad for those same shoes in your sidebar while looking on another site.

This is how re-targeting works, and it can be extremely effective. Research shows that users who are re-targeted are 70% more likely to convert, which is an opportunity too big for most businesses to ignore.

It makes sense – you went looking for a certain item, which means you’re interested, and sometimes all you need is that little nudge or reminder to actually go through with the purchase.

Display ads can be great for this purpose.

2. Where will it be shown?

But, of course, you also need your ads to be shown on the right websites, where your target audience is active, and actively considering making a purchase.

There’s little point having your display ads for hose fittings showing up on a news and entertainment site – while that sort of approach might get you reach, it’s less likely to generate the best response. You’d have better luck targeting gardening sites or hardware-focused platforms, related websites where your target audience is more likely to be active.

For this purpose, most display platforms offer some level of ad targeting. Sensis, for example, offers targeting to approved sites to ensure your ads appear where they’re more likely to drive response.

Again, focus is key with display ads – you need to reach the right consumers at the right time. Your host sites are a key element in your campaign.  

3. How does it look?

The final major key for display ads is how they look. Are your ads attention-grabbing without being intrusive? Do they speak to your audience and generate response? Does your landing page provide all the relevant information to best facilitate a sale?

All of these elements play a part – you don’t need to be a design genius, but you do need to understand what your audience is after, and what they will, and won’t, respond to.

You also need to monitor your analytics to see where your audience are falling away – for example, if they’re clicking through on your ad but not converting, your landing page might not be up to scratch.

As in all things marketing, understand the user perspective and ensure your content speaks to their needs.

There are various other considerations with display ads, but these fundamental elements are key to your success or failure with this option. Used well, display advertising can be a great way to generate more exposure and drive leads. But it’s a delicate balance, and one which requires a measured approach. 
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