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On Doing Business in China: A Conversation with Bob Upham, Former VP of Dolphin Browser
For American corporations, China is a market of opportunities and unknowns. btrax was very lucky to sit down with Bob Upham, the former VP of Business Development for Dolphin browser (now at Quick.ly), to chat about his experience working closely with China.
Upham has 28 years tech industry experience in both the US and China. He traveled intensively to China during his time at Dolphin Browser and worked closely with stakeholders there. In our interview, Upham shared his insights and raised valuable suggestions for tech companies doing business with Chinese partners or planning on expanding in China.
Below are the highlights of our conversation; btrax dialogue is in a larger font.
Based on your experiences, what is the major pain point of US corporations doing business in China?
Many US companies do not trust Chinese vendors or partners because they don’t believe their information will be protected. On the flip side, Chinese companies tend to trust similar Chinese vendors and the local government more.
To remedy this, China companies could assure their American counterparts that they will operate under US laws. For US companies, a trusted partner in China is helpful for gaining support from the local government and building good relationships with other Chinese stakeholders.
Chinese companies usually trust their own local partners because they have an established relationship (guanxi), but in the global B2C era, international brands enjoy a perceived premium over local brands. Chinese consumers tend to trust foreign brands more, and this attitude is prevalent in the categories of food and drink and luxury products, such as vitamins, milk powder and leather goods.
The Chinese and American market share some similarities, but what are some of the major differences between the corporate players of the two countries?
The main difference may be in the vision. US businesses usually have a longer term vision, meaning they are willing to invest in branding, marketing and other long-term strategies. However, Chinese businesses are more concentrated on making money right away. That’s shortsighted and is hard for American businesses to follow.
There are two possible reasons for the difference. First, Chinese companies tend to be more eager to win and have less tolerance for failure. US companies, especially startups in Silicon Valley, regard failure as something normal and are motivated to start over when they fail. The culture in Silicon Valley makes companies take bigger risks, focus less on fast money and more on the company’s long-term health and growth.
The second reason may stem from the so-called “new money” phenomenon. Many business owners in China went through a time of poverty, and thus have a different view of money and are very dedicated to earning more. This phenomenon is getting less common now as the new generation of Chinese companies are growing to be more global.
Made in China has long been perceived as cheap. Even now, many Chinese companies do not care about product branding, with this attitude reflected in their poorly made English websites, lack of good UX, and unattractive booths at international conferences and events.
On the other hand, US companies invest a lot in branding and marketing, and often pay more for advertising than for the cost of producing the actual product. Interestingly, that works the same way when it comes to US brand marketing to Chinese consumers.
Dolphin browser is popular in both China and the US. Do you have any insights on the mobile market in China?
In both the US and China, internet usage on mobile devices is higher than that on PC. The China market is important to any mobile tech company for its huge group of mobile users and high mobile penetration. People in the rural areas of China may not necessarily have a PC, but they usually have cell phones, which is the easiest way for them to connect with the world. Chinese users care about content; they use their mobile devices as a way to kill time. People like to read news, watch videos and play games on their way to and from work.
US tech companies should also know that China has many Android app stores. It’s very different from the US, where Google Play dominates. Tech companies that offer mobile versions of their product need to make sure the product appears on all app stores in China.
iOS users cannot change their default browser, but Android users have a wide range of potential default browsers to choose from, and that’s why most browsers concentrate on the Android system. Understanding your battlefield is a must before you go to a new market, but it is even more crucial when it comes to the China market.
Edited by: Kristie Wong
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