Difference Between The World And Chinese E-Commerce Market

Thomas L. Friedman in his book, “The World Is Flat” has advocated the idea that globalization has literally made the world a flat field for everyone to play. This has in a large sense been true as one can find that an Australian company holding its back office operations in India, a British company has … Continue reading “Difference Between The World And Chinese E-Commerce Market”

Thomas L. Friedman in his book, “The World Is Flat” has advocated the idea that globalization has literally made the world a flat field for everyone to play. This has in a large sense been true as one can find that an Australian company holding its back office operations in India, a British company has its social media marketing team in South Africa, an American multinational has its manufacturing unit in China, an Indian company has its design department in Germany and so and so. All these have essentially made the world flat with anyone able to work for anyone from anywhere. This has in part been enabled by the information technology revolution that has taken place in the 21st century. This scenario is largely true in anywhere on the planet except for China.

 

Although Chinese products flood the local markets of every country and most famous multinationals of the world have their manufacturing units in China due to the availability of cheap labor and hence the cost of production, the local market of China is still inaccessible for the most companies. E-Commerce companies that are looking to make a headway into China are still facing issues as an ordinary e-commerce manager, who is proficient in the search engine optimization, customer relations, social media management of the world that has grown with the help of Google, Facebook, Twitter, Instagram finds himself on an alien turf in China where all these do not exist.

So it is pertinent that an aspiring manager of an e-commerce site in China should make himself familiar, if not proficient in the usage of Weibo, Baidu, WeChat to account for the necessary cultural change in China. Moreover one has to understand the power dynamics in the Chinese society as there is a huge difference between the western society and the oriental, ancient Chinese society which has been a traditional one which has passed through communist regime and today which is experiencing a new open market policies. In a sense China has become the new melting pot of various ideologies and hence need the panache in the manager to effectively lead his team in China.