China has in recent years become a true entrepreneurship hub and a place to be if you are ready to start your own business. Its economy is the second largest in the world and its purchasing power parity is ranked as the second highest.
People come to China on a daily basis, ready to achieve their entrepreneurship dream. If you are one of them, then this article is perfect for you. Finally, you made the decision, but a great idea hasn’t come up your mind yet and you are also not sure about what industry you should focus on.
We will give five great and thriving industries in this article, where you can start your new business, that may not be as talked about like starting your own trade business or educational enterprise.
1.Beauty and skincare industry
The beauty industry is a fast rising one in China with the skincare sector being the fastest growing in the industry. It is predicted that by 2020 the beauty industry will be worth $62 billion with Chinese consumers being ready to spend more money on quality and innovation. To undertake a skincare business is a good choice for prospective business people as the industry keeps growing and with China’s technological advances the beauty industry is definitely a field to consider.
- E-commerce industry
The e-commerce business is one of the driving forces of the country’s economy and the popularity of it in China is not slowing down. With platforms like Taobao and AliExpress, starting and running your own business has never looked so simple. With new innovations rolling out on almost a daily basis, with a simple idea you could have a profitable business. Growth in e-commerce is especially seen in Tier 3 and 4 cities with an increasing number of users in rural areas.
- AI industry
China is currently leading the AI sector with every major city in China having its own AI Tech Zone and heavily investing in this industry. Long are gone those days when China was viewed as a country that copies and doesn’t innovate. China is home to more than half of the world’s unicorns with innovations happening almost daily.
- Travel industry
The tourism industry is on the rise in China, with tourism becoming a major contributor to the domestic economy in China. The market has become one of the most watched when it comes to both in-bound and out-bound tourism. Chinese tourists and companies are revolutionizing the industries with outbound tourism soon surpassing inbound tourism. Classical guide organized travels are not on the decline, but new demands are on the rise like high-end packages, semi-self-guided tours and other customized travels which leaves a lot of space for innovations.
- Digital Marketing industry
Digital marketing is the market everyone wants to be part of. The mobile market in China keeps growing, with WeChat being a big player in digital marketing. Digital marketing trends in China are always changing and online marketing is an essential tool for companies today.
Challenges of starting your business in China:
- Language difference
- Culture difference
- Little knowledge of the laws and HR procedures
- Credibility and reputation
How to overcome the challenges?
Doing your research is a must when starting a new business, especially in China in order to better understand the culture and social practices. Like in every country, the social norms in China are different and are important to know them and understand them. Patience and resourcefulness are the best traits you can have if you are starting a business in China.
Having the necessary paperwork and abiding the law is important and having local employees or a partner is a plus as they better understand the local market or industry.