The confrontation between China and the United States has intensified. Disputes ranging from trade between the two countries to technology, and even military and financial fields have escalated and spread to different geo-economics around the world.

In the face of the Sino-US disputes and the global economic slump caused by the epidemic, the Chinese government has proposed a dual-cycle response strategy that focuses on internal cycles.

In 2019, China-EU trade volume reached 4.86 trillion yuan, a growth rate of 8%, accounting for 15.41% of whole foreign trade, ranking first among all trading partners. Despite the impact of the epidemic, China-EU trade volume in the first half of this year still increased by 2.2% year-on-year. There is no doubt that Europe is the most important part of our foreign cycle. China-EU trade has become one of the key engines for maintaining the high-quality development of our economy.

How to deepen Sino-European cooperation and actively expand the European market has become a major realistic challenge for millions of Chinese foreign trade companies to get rid of their difficulties.

For this reason, John Wei, CEO of Qiyang, interviewed the European digital marketing expert, Mr. Beat Z’graggen, CEO of WorldSites in Switzerland, on the European market and digital marketing strategies and the right react of Chinese companies.

Mr. Beat Z’graggen, CEO of WorldSites in Switzerland

Is the European market important to Chinese companies?

At a time when Chinese enterprises are going global, it is indisputable that Europe has always been a vital geographic area for them, given the inherent advantages e.g. the strong consumption power, advanced technology & manufacturing capabilities, and so on.

Europe has a population of 748 million, more of 500 million of them are in a single free-trade zone allowing entry in a market with as GDP of 20 Trillion Dollar – more than the GDP of the US. So, the European market certainly is relevant for China.

Not only does Europe provide access to consumers with high disposable income who are prepared to pay premium prices, but its size and level of sophistication makes it possible to sell successfully to niche groups.

China looks at Europe to identify emerging trends. So, having a presence in Europe can potentially attract the attention of Chinese buyers, as well as European consumers.

Europe’s transparent systems and single regulatory framework makes it easier to do business across multiple countries.

How do Chinese companies enter the European market?

Competition in the European market is aggressive in most sectors. Growth rates are slow, creating entry costs and barriers for new players. Each market within Europe requires a different strategy and focus. That is why using data from Google is most important. Google has a market share of 95 % and most companies and private consumers are using Google in order to find a supplier or a solution for their needs. Before entering a market, it helps to find out in which European countries the demand is the highest. Therefore, it is good to have a local partner that can help you figure this out.

Three marketing strategies that are important to know concerning the entering into the European market:

1. Target

• Don’t select a country simply because it can be seen as a hub for Europe; instead focus on the market that provides the best access to your customers.
• It is important to understand with which customers and which offers you really earn money and which messages you want to spread.

2. Consider regions

• Ideally, you should be based as close to your customers as you can. It often means selecting large cities as a base.
• When you locate your company in a European country, you also benefit from the political regulations that provide a strong institutional framework and long-term stability.
• However, companies planning to set up production and create local jobs should also consider if any regional incentives or public-private-partnership schemes are available.

3. Know regulations

• Regulatory requirements, especially in the pharma and food & beverage sector, privacy is far more complex than in China.
• Recently the EU has tightened its data protection laws. To earn the trust of the European customers you need to show them that data security is important to you.
• Full traceability of the products is also compulsory in the EU.
• In order to make no mistake concerning the regulations local legal knowledge is essential.

At present, are there major Chinese companies in Europe?

Most major companies are present in Europe. Around 5’000 companies in Europe are owned by Chinese.

What is the status of Chinese businesses in Europe?

Europe has long been an attractive place for Chinese companies looking to invest and acquire — and the recent bout of weakness in stocks, particularly in key tech firms, could further pique their interest. As a reaction politician in Europe try to protect their companies in fear of losing influence and workforce to China. You need to be aware of these political restrictions for non-European companies and find the best way to settle down in the desired market with the help of a local partner.

What are the challenges for companies in digital marketing?

Improving your ranking on Google is one thing, but in order to attract customers, you need to target the right visitors at the right time. A good strategy can improve the performance of your marketing campaigns a lot or increase the probability that a visitor attracted by your website will buy or make contact several times.

Chinese companies may be faced with different legal regulations, political systems and customer habits than they are used to from China or the US.

On top of this there are many potential difficulties connected to doing business outside of your native language. It’s important to have resources that can help you communicate.

After being clear about your business goals, it’s necessary to analyze which keywords you need to use to reach them. Based on the collected data, you need to adjust your long-term SEO strategy, initiate new content, build suitable links and use the customer feedback to better convince the customers.

Why Worldsites?

With more than 20 year experience in online marketing for B2B companies and with partner offices in 87 countries, WorldSites supports you in winning customers in the Europe and other markets in the most effective way. As your local partner we can help you to consider all the legal regulations and address your European customers in the best way.

Because we have always focused on sustainable strategies, we have been able to gain a lot of experience in this area.

For more info, please contact with WorldSites as following.

Tel: +41 (0)41 799 80 99
Email: info@worldsites-schweiz.ch
https://worldsites-schweiz.ch