Why foreign startups fail in China

by Dramelin 10:30 PM 0 comments

What is China censoring online?    Friday, 19 May 2017 | 11:45 AM ET | 03:43 The Chinese user is very different "We`ve seen companies coming to China and adapting to the value proposition to a different type of demographic," said Ramos.
"But afterwards they realized they were more successful in Southeast Asia where they can leverage their acquisition channels that they`re more familiar with.
" Platforms like Google and Facebook are common forms of getting new users for many start-ups, both of which are blocked in China.
In fact, an estimated 96% of online traffic in China goes to Chinese servers, according to China Internet Network Information Center.
"Challenge all your assumptions," Ramos said.
"Everything that works in other markets, you need to be open to changing.
" There are opportunities, after all When it comes to a competitive advantage, there`s several industries growing fast, in which there`s a lack of expertise in China, according to Ramos.
This includes health care, education, fashion and food.
Not only are they opportunities to enter and scale in China, but Ramos said, being a foreign brand is actually an asset in such industries.
He also adds both augmented and virtual reality are also in demand right now.