Cross-border business matchmaking in China is beneficial for international brands wishing to enter the “Middle Kingdom” or expand their Chinese customer base.
The specialists at China Gravy are experienced in connecting global companies with the Chinese market. We facilitate connections and partnerships to ensure mutual growth and success.
Cross-Border Business Matchmaking
To begin with, China business is useful for all brands wishing to tap into the third-largest consumer market to date, and the largest consumer market by 20230 – China!
Business Development vs. Business Matchmaking
First of all, China business development is particularly valuable for SMEs that are seeking to expand in China but lack the resources or networks to do so by themselves. The expertise at China Gravy is with service-based businesses in the real estate, education, and hospitality sectors.
On the other hand, cross-border business matchmaking goes further. It refers to larger deals that rely even more on expertises and connections, trustworthy partners, understanding the governance regulations, and business environment in the respective niche.
Given China’s distinctive blend of government and enterprise in its business landscape, conducting business can pose challenges without experts on the ground who understand the practices in the Chinese market.
This is where an expert on doing business in the “Middle Kingdom” like China Gravy can help.
Goals of Business Matchmaking
Cross-border business matchmaking aims at
- expanding markets
- increasing sales
- growing audiences
- driving innovation
- boosting efficiency
This is achieved by facilitating connections and providing support in the process. There are different types of business partnerships/setups, including:
- Purchase Order: buy and sell (import and export) from/to China
- Trade Partnership: connect buyers and sellers
- Joint Venture: Chinese/local companies seeking local partners overseas/in China
- Strategic Alliance: sharing expertise without formal joint operations
- Licensing Agreement: use of intellectual property
- Franchising: brand expansion through third-party operators
- Distribution Partnership: partner networks for market distribution
For successful cross-border business, it is important that the objectives align with the business goals. So, how do you get started? Let’s take a look at our five-step plan.
Successful Cross-Border Business Matchmaking in 5 Steps
Based on more than 10 years of experience with helping brands enter and succeed in the Chinese market, we are excited to share our insights with you.
Follow these five steps to find the right business partnership/setting for your company’s needs and goals:
- What are the objectives of your partnership and selection criteria?
- Where can you find potential partners and establish initial contact?
- How can you assess the suitability of potential partners?
- What are appropriate ways to negotiate terms and formalize agreements with Chinese partners?
- Which mechanisms ensure high partnership performance?
This is a playbook for cross-border business matchmaking based on our own real-life experience so to speak.
1. Define partnership objectives and selection criteria
Understanding the objectives and goals of the partnership is the first step in any business matchmaking.
- What are the strengths of my business?
- Where does my business have gaps that a partnership can potentially fill?
- Are there any complementary strengths like technology, innovation, or market access?
- What is my goal for the partnership and what is important to me?
Establish selection criteria to identify your ideal partners. These could include:
- Capabilities: technology, marketing, reputation, etc.
- Finances: revenue, debt, cashflow, etc.
- Market knowledge: customer base, market reach, network, etc.
- Operations: company size, year of establishment, etc.
With this, you have laid the foundation to explore potential partners. But where do you find them and how do you get in touch with them?
2. Identify potential partners and establish first contact
Refer to international business networks, digital matchmaking platforms, and industry events to identify potential partners that meet your criteria.
If you don’t know how to get started, an expert like China Gravy can help you identify industry leaders, niche experts, and relevant spokespeople.
From one-on-one meetings to high-level conferences, we facilitate meaningful engagements that serve as a solid foundation for mutually beneficial partnerships.
3. Evaluate potential partners and scenarios
Conduct detailed due diligence to evaluate the financial stability, business practices, and market reputation of potential partners. Confirm mutual interests and goals through exploratory talks, where you can also discuss the type of partnership (e.g. purchase order or joint venture).
Remember the importance of “Guanxi” in China. Building a good relationship with potential partners through several (informal) meetings, gifts, and mutual appreciation is the basis for a long-lasting business partnership in China. Getting straight to the point is not the way of doing business in China!
4. Negotiate terms and formalize partnership
The terms of such an agreement typically include
- company details of all parties
- type of partnership
- purpose of the partnership
- roles
- scope and out of scope (included/not included)
- duration
- contribution (financial, in-kind, and other) of each party
- profit-sharing
- NDA
- governing law, conflict resolution and exit strategy
Sign and, if necessary, legally authorize the agreement, and share it with relevant stakeholders.
5. Manage partnerships and adapt as needed
Establish mechanisms for regular communication and collaboration. A tip from our experts: business communication in China is centered around the messaging app WeChat, and email is not as commonly used for business as in the Western world.
Start with smaller projects to test partnership dynamics, and adjust the partnership based on performance and market needs.
The Takeaway – Cross-Border Business Matchmaking
Cross-border business matchmaking in China presents immense opportunities for global companies. Connecting brands worldwide with the Chinese market and vice versa, China Gravy specializes in creating sustainable and mutually beneficial relationships for business success and growth.
Follow our five-step strategy for successful cross-border business:
- Define partnership objectives and selection criteria
- Identify potential partners and establish first contact
- Evaluate potential partners and scenarios
- Negotiate terms and formalize partnership
- Manage partnerships and adapt as needed
Follow this strategic approach to navigate the complexities of cross-border business matchmaking in China. Would you like help? Message the cross-border business experts at China Gravy.