Sinew Consulting Group

Using Taiwan as the test model before entering into Mainland China Market

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The economic growth and consumption power growth in China attract all business fight to get in the market. It, however, is so different from the western world. To learn all the lessons of Chinese cultures, point of views, values, ways to do business, regulations (may have different philosophy behind it), and connections need time and efforts. You also need to test and try to find the operation way and acceptance for your business (products) to accumulate your experience. One way to shorten the learning curve is to use Taiwan as the test model.

The advantages of employing Taiwan as the test model include the followings though the two areas got different political systems,

  1. Taiwan has similar Chinese cultures, point of views, values
  2. Taiwan business are familiar with ways to do business and connections in Mainland China
  3. The market size in Taiwan is much smaller than the one in Mainland China (much larger than the one in Hong Kong) and is proper to be the test model
  4. The regulation system in Taiwan is similar to the one in Mainland China
  5. Taiwan business are familiar with the western cultures, point of views, values as well and so are easier to communicate with
  6. Taiwan got perfect representative combinations of the subcultures from different districts (may have different concepts and favorites) in Mainland China due to the history factor

As the example, company A would like to have her new ingredient-PS into the Greater China (CN, TW, and HK). The managers team decided to try it in Taiwan and see the results. They had studies in Taiwan on the regulation compliance with Taiwan FDA and SAMR/CFDA, and market research of food supplements/functional foods. They learned the gaps that they need to make up.

Governmental agency B would like to help local products to get into the market of the Greater China. They hired a Taiwanese consultant company to hold the consumer surveys (FGD & CLT) in Taiwan and analyze the data. By this, they did not just collect the data in Taiwan to set up the marketing strategy for Taiwan, they also set up the survey model (including the questionnaire design) for Chinese to be employed in Mainland China. The products from that country had launched both in Taiwan and Mainland China successfully.

Company C would like to learn the competence of her new technology (in product form) for the market of the Greater China. They decided to have the studies with Taiwan business to dig out the industrial indexes for both in Taiwan and Mainland China with smaller budget. They learned that the competence of that technology in product form is medium and so they need to have strong marketing power at current technology level. They also may face the competitors from Taiwan in Mainland China market.

Having Taiwan as a bridge to the market of Mainland China is the unique choice for you to consider.

If you are interested in having Taiwan as the test model for your business to get into huge market in Mainland China, please feel free to contact us at