B2B with the Chinese government is dead, long live the mass market!
Gone are the heydays of B2B with the Chinese government and its massive purchases of foreign high tech equipment. Many foreign brands including the leading company in the industry have been written off of the approved list for state purchase. So Apple, Intel, the manufacturer networks CITRIX System or McAfee, can give up selling massive amount of high tech equipment to the Chinese government. Officially, this action is in response to the rumors of Western cyber surveillance.
The past two years, the number of brands in this list has increased by half to move to 5000. However when looked at more closely, there has been a giant clean up in state-approved companies while local one where warmly welcomed by the state
These new protectionist measures are only the latest in a series which aims to promote local brands.
Reactions in High Tech WeChat Groups summarize the problem well
Mr. Chang “Chinese government stopped buying so much Lafit castle”
Az “ Do you think this trend will extend to other industries?”
What does this mean for foreign brands?
B2B with the Chinese government is dead. As a company, it is the mass market with the most potential.
To be successful in this market you will need to have a proper marketing strategy in the most Internet connected country. Only one way: web marketing.
To learn how to increase sales in China with the digital marketing it’s here
Why Digital is essential in China, there