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Challenges of Starting up an Online Business in China - Essay Example

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This essay “Challenges of Starting up an Online Business in China” identifies both the threats and opportunities associated with using the TaoBao sales platform in the hopes of creating a successful and thriving business model. Research evidence suggests that there are more opportunities than challenges…
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Challenges of Starting up an Online Business in China
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 Opportunities and Challenges of Starting up an Online Business in China Introduction There are considerable opportunities for individual entrepreneurs in China in terms of launching a successful online business. There has been substantial growth in the volume of Chinese citizens with access to Internet-based technologies as well as a growing economy that is beginning to support the use of online payment tools from Chinese citizens. There is a new, measurable demand for a variety of products in China and there is evidence that the Chinese consumer favours the online medium for making convenient purchases to fill their consumerist needs. Additional opportunities include growth in Chinese consumer acceptance of the TaoBao e-commerce platform, a respected online marketplace with over 145 million users as of 2009 (yoybuy.com, 2010). Rapid development of the Internet infrastructure designed to support free exchange of information and commerce online creates ample opportunities for the enlightened, motivated entrepreneur. However, despite these opportunities, there are many challenges for new business start-ups and entrepreneurs in the TaoBao marketplace, ranging from uncertain governmental influence in regulating Internet content as well as several consumer-related issues that are directly related to demand and cultural preferences. This chapter identifies both the threats and opportunities associated with using the TaoBao sales platform in the hopes of creating a successful and thriving business model. Research evidence suggests that there are actually more opportunities than challenges if the individual entrepreneur understands how to combat the list of problems that might develop when using this particular e-commerce platform. About TaoBao The TaoBao e-commerce platform serves as a selling platform for a multitude of different product vendors, comparable to sites such as eBay. In this platform, there are considerable differences to other global or regional Internet commerce sites that make TaoBao unique and attractive to a variety of Chinese consumers. For instance, the website boasts an interactive exchange forum, much like a blogging presence, where sellers and vendors can communicate in real-time to either negotiate pricing on products or describe individual needs related to product sales. This forum is considerably convenient for the modern Chinese consumer at a time where the Chinese culture is marked by considerable price sensitivity and thrift related to pricing (Suessmuth-Dyckerhoff, Hexter and St-Maurice, 2008). In fact, a recent survey identified that over 80 percent of surveyed consumers believed pricing the most important factor in certain product purchases (Suessmuth-Dyckerhoff, et al). The main advantage of the TaoBao e-commerce platform is for the individual business or entrepreneur who can clearly illustrate their competitive pricing in a forum that is clear, concise and easy to understand for the educated and less-educated Chinese consumer. TaoBao creates a unique medium for selling products in a way that is culturally relevant to a thriving Internet-demanding Chinese citizen. “It has become a habit among Chinese online shoppers to ‘chat’ with the sellers or their customer service team to enquire or bargain prior to purchase” (china.org.cn, 2010, p.1). Since the Chinese consumer base is familiar with this interactive exchange, it would suggest a potential cost savings for new business entrepreneurs in relation to consumer marketing as a tool to force familiarity of these chat forums. Growth in e-commerce in China has seen a 1,000 percent increase since 2001 (researchinchina.com, 2010). This makes the TaoBao site, and all of its competitive and culturally-relevant sales forum, well-suited for the individual entrepreneur looking to showcase what makes their product offerings unique and interesting. Growth in Internet availability and mobile technologies There has been considerable growth in the Chinese economy, due both to high increases in foreign direct investment in a variety of different industries, growth in regional manufacturing capabilities, and through the efforts of up-and-coming entrepreneurs with unique business ideas and product/service offerings. With this economic growth have come higher levels of bank card and credit card issuance, giving consumers much more flexibility in choosing their preferred payment option to include Internet-based commerce. Another recent survey of Chinese consumers indicated that 73.8 percent of those surveyed had an active demand for the ability to pay for products online using credit and debit cards, with only 28.1 percent of those surveyed still valuing the importance of cash and carry transactions (Lui and Suomi, 2007). Higher demand rates for the ease and convenience of e-commerce purchasing represents a significant opportunity for the individual entrepreneur. Assuming that the individual businessperson can create a product offering that is both competitive and reasonably priced in comparison to similar products, there is an active and large volume of consumers willing and ready to make regular online transactions for their product needs. There has also, in recent years, been an explosive growth in Chinese consumer demand for mobile technologies, including those with Internet-oriented applications. In 2008, the volume of subscribers to mobile technologies reached 480 million, an increase of 20 million in just one year (Fu, 2007). Growth in mobile technology use, such as the iPad which is equipped with a variety of online consumer-oriented applications, represents an important opportunity for a start-up company. Mobile technologies equipped with online-based applications provide the opportunity for entrepreneurs to showcase their product offerings in a way that is meaningful and convenient for a mobile-oriented Chinese culture. Products demanded At the earliest stages of e-commerce growth in China, the most highly demanded products included DVDs and software applications (Backaler, 2008). Today, there has been a noticeable shift in product preferences that now include, instead of these prior product offerings, books, cosmetics and clothing (Backaler). This suggests that there is a new entertainment and vanity-focused cultural presence in China, representing opportunities for those entrepreneurs with the ability to procure and/or manufacture these goods at a competitive price. Unlike some Westernised countries, in China there is little cultural recognition for the notion of housewife, with Chinese female buyers stretching their influence in product purchasing decisions (Wheller, 2009). As female consumers become more secure in their cultural position and are able to land meaningful careers to sustain the household, their purchasing power increases at virtually the same rate as their societal status. For the individual entrepreneur equipped with the knowledge necessary to market successfully to this influential female buyer group, opportunities to gain female consumer loyalty continues to grow. Coupled with the growth in credit card issuance in this country and their growing familiarity with the TaoBao buying platform, this group of consumers represents considerable growth opportunity. It is likely that this particular group contributes to the growth in demand of personal grooming and entertainment products that are commonly desired in today’s e-commerce environment. Available e-commerce technologies For those individual entrepreneurs that are less interested in consumer-based targeting, there are also growing opportunities for the business-to-business marketplace within the TaoBao platform. B2B transactions include those transactions between one company or organisation to another. As the infrastructure becomes more sophisticated for ongoing growth in e-commerce activities, so does the technology to support business-to-business networking and sales efforts. Where once the exchange of information from one business entity to another was largely restricted to those with the resources to purchase expensive Value Added Networks through mainframe computer systems, growth in less-expensive electronic data exchange has become available to the less-endowed business entrepreneur (Leung, 2003). Growth in the electronic data exchange capabilities also provide new opportunities for entrepreneurs to locate competent and qualified data support experts that can assist in supporting different hardware and software applications (Leung). Business entrepreneurs that lack the financial or labour resources to experience rapid business expansion can, through these data exchanges, locate low-cost or educated IT professionals to consult and assist in the management of sometimes complicated software systems. The ability to successfully network between business professionals in the B2B environment is supported by TaoBao and its interactive communications exchanges as a positive opportunity for improving business at the management and information technology support level. Advantages in advertising and marketing Noticeable in China, especially with the youth buyer markets, is a tendency to lean toward making purchases that use advertisements depicting local, inspirational celebrities and other renowned parties (Hargrave-Silk, 2004). This was noticeable with one multi-national company and franchisee, McDonald’s, who had found considerable profit success by using basketball great Yao Ming to bring more Chinese attention to the restaurant’s menu offerings (Hargrave-Silk). This growth in acceptance of certain celebrity endorsers represents a considerable advantage to the individual entrepreneur when considering TaoBao at the cultural level. Chinese consumers are, measurably, driven toward making product purchases when they are advertised with linkage to known inspirational idols. TaoBao provides considerable public exposure after products have been listed on the site, therefore opening multitudes of opportunities to use these figures to help promote product. For the entrepreneur with the cash resources available to recruit these celebrities or local heroes, sales and profit success could be generated simply by phrasing the advertisements in a way that is culturally meaningful using the figure’s image. The success or failure of a business is often dependent on the marketing expertise and advertising talent of the entrepreneur and the Chinese TaoBao sales environment gives the exposure needed to create positive sentiment toward the individual’s product offerings. CHALLENGES WITHIN TAOBAO Cost and technology challenges to e-commerce in TaoBao Zhu (2007) offers a volume of challenges that entrepreneurs might face when looking toward TaoBao as their preferred selling platform. These include: High access costs to certain e-commerce applications Lack of resources to maintain e-commerce at the internal level Lack of certain standards related to technology in areas of payment certification and security Interoperability concerns related to poor technology standards Even though networks such as TaoBao have been designed to make the process of facilitating business to consumer transactions, there are many internal issues that are complicated by the aforementioned problems. For a small-sized business entrepreneur, even with the assistance of the well-developed TaoBao platform, the human requirements to manage e-commerce transactions appears to be lacking. Coupled with the high costs of access and maintenance for additional, internal supporting software and hardware could easily complicate the goals and business aspirations of the start-up entrepreneur. Though these technology related issues are currently being developed and improved upon, they represent legitimate threats and risk to many types of business models. The regulatory influence The Chinese government has notoriously been demanding more control over the content of information being exchanged over the Internet (Lu, 2005). The pace at which e-commerce has grown has also increased the government’s interventions in attempting to regulate payment, information exchanges, and many other aspects of the Internet environment. Growth in e-commerce, however, has been outpacing the speed at which regulation occurs, making the future of Chinese e-commerce uncertain related to the type of information that can be passed along online channels. Therefore, even though the TaoBao network, currently, represents many opportunities, there is a significant risk in terms of what type of content or transactions will be taxed and/or regulated for future product sales. An individual entrepreneur who might be risk-averse may choose to avoid these public sales networks if their profit or management model is upset by ongoing and increased governmental controls over their business activities. “China’s state-controlled or ‘command’ economy has led to a system of hierarchical firm organisations and centralised management structures that are incompatible with the requirements of web design and management” (Ernst and Jiacheng, 2000, p.4). What this suggests is that there is a certain inflexibility at the business, government and cultural levels that may not necessarily be compatible for innovative entrepreneurs who, figuratively, mould their business models outside of the status quo. An individual entrepreneur looking to establish a sales presence on TaoBao might not, due to these rigid third-party structures, find adequate support help that can assist in managing a non-traditional sales-oriented business model. It could potentially also create problems with identifying and recruiting non-traditional management and employee teams that have been, at the cultural level, used to operating in rigid, hierarchical business structures. This points toward the potential need for costly training in more innovative business practices or high costs associated with recruitment to find qualified and flexible personnel. Challenges of staffing Even though the TaoBao network is equipped with multiple seller-oriented platforms for sales transactions, there is a problem at the cultural level that could impact business success for the entrepreneur. In certain customer service-focused business models, there is a high volume of employee turnover, decreased job satisfaction in these roles at the employee level, and low organisational commitment (Zhou, Long and Wang, 2009). Because of all of the elements associated with the TaoBao sales platform that are highly customer service-oriented, there will likely be a need for the entrepreneur to hire associate employees to help support the business in areas of marketing, distribution, and general business management. There is a definite lack of career commitment that has been found to be closely linked to the high turnover rates in certain customer service industries (Zhou, et al). Entrepreneurs in need of multiple support staff may have difficulty, based on this cultural trend, locating individuals with the motivation and business commitment needed to successfully support and grow his or her business on the TaoBao sales platform. Though the platform has been designed to aid in more easily facilitating transactions at the virtual level, when there is a need for support staff to assist the business turnover potential becomes a genuine cost and management risk. Because Chinese employees have been used to more rigid business hierarchies, as described in the previous section, getting recruited employees to adopt a more flexible mindset and seek service-oriented positions for longevity could be a significant problem at multiple levels. Cultural problems with e-commerce At the cultural level, there are certain characteristics that are shared by most Chinese consumers that can serve to complicate innovation for the entrepreneur in the TaoBao sales platform. Geert Hofstede developed what is known as the Cultural Dimensions model that predicts, based on decades of research data, the most likely characteristics of certain international cultures. Under this model Chinese employees would share a collectivist mentality, this meaning less emphasis on individual accomplishment over the collective values of the entire group or organisation (gsu.edu, 2008). Employees who share these beliefs tend to make decisions based on group consensus with a strong focus on teamworking. The TaoBao sales platform maintains all of the applications and features necessary to conduct innovative and unique business so as to establish a unique identity among competitors. However, at the internal level, this cultural tendency to refute individual accomplishment could pose an employment risk for the entrepreneur. This would be especially true if the business presence were established within collectivist China and the recruitment needs to sustain the business came from regional employment agencies (or other hiring mediums). A business entrepreneur looking to establish a unique presence and reward individualism as a preferred human relations goal might have a significant amount of problem gaining employee commitment in an individualised work environment. Also at the cultural level is a tendency for Chinese employees to appreciate long-term orientation in most business decisions (Marin, 2010). Long-term orientation represents the level to which employees (or business allies) prefer to make decisions when there is a promise or guarantee of long-term growth rather than immediate, short-term success. Even though there are ample opportunities with the TaoBao platform to make decisions that benefit the business over the long-term, such as creating a vision statement for rapid expansion, the cultural presence of long-term preference could pose a significant risk for the entrepreneur. A small business requiring the assistance or alliance between different business partners could, based on Hofstede’s dimensions, have difficulty getting others to adopt short-term proposals if they do not clearly spell out what is to be expected over a long period of time. A business owner without adequate resources to tackle the project without B2B partnerships could face tremendous risk at the employment and consultive levels for short-term risk avoiding mentalities. Business owners looking toward the TaoBao platform to improve or launch their business offerings may also have difficulty in finding success at another cultural level: power distance. By definition, power distance represents “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally” (Marin, 2010, p.2). Under Hofstede’s cultural map, Chinese employees can be predicted to appreciate structured, more rigid hierarchies of control and expect directives to be a routine and ongoing part of the business model. Less capable entrepreneurs, those lacking the human resources talents necessary to mould individual talent, might grow frustrated or find business risk from employees who are not accustomed to working independently and without constant managerial direction and presence. A time-strapped entrepreneur, one lacking the resources to hire a rounded managerial team, could potentially find themselves with problems locating individuals who will commit to more liberal and autonomous working environments especially if recruiting from the local region. An individual looking toward the TaoBao platform as an ideal place to spotlight their product offerings could be over-complicating their business models with excess managerial demands in areas of control and authority distribution. Even though the technology exists to enhance and improve business standing in the online environment, this cultural tendency stemming from Chinese consumers might dramatically impose excess burdens on the entrepreneur making this investment too costly at the recruitment and retention levels, including human relations resources and training. Business protectionism issues In most business organisations, regardless of their point of origin, there are certain restrictions and regulations that are imposed on the organisation related to protecting the intellectual property of different business secrets and products. It had been, historically, the policy of regulators responsible for securing the intellectual property of others to categorise offenses against copyright (and other) infringements into ‘ordinary’ and ‘serious’ acts (Jennings, 2008, p.643). Ordinary acts led to a simple apology on behalf of those accused of copyright infringement, with fines imposed against those with more serious, blatant violations (Jennings). However, due to U.S. intervention and sanctions, China has revised these intellectual property policies and regulations to be more congruent with the rest of the globe involved in international trade activities. However, despite these changes, China still leads the world in a variety of different counterfeiting and piracy issues related to others’ intellectual property. For example, China currently has the highest level of software piracy of any nation (Jennings). An individual entrepreneur that specialises in software or software support systems might have a serious business risk using the TaoBao platform in relation to piracy of these applications that can impede sales success and, potentially, reputation. Because of the popularity of TaoBao and its high volume of registered Chinese users, it becomes an ideal place to attempt to sell pirated software packages, at a price much lower than the original supporter or manufacturer, thereby creating opportunities for short- or long-term business failure. Even though the Chinese government is working with different international partners to prevent this failure, the high level of product and brand name exposure within TaoBao might open the proverbial flood gates for pirating and/or counterfeiting that has yet to be controlled effectively in this particular sales region. Because Chinese regulators have not been able to successfully eradicate the ongoing problem with copyright issues and other intellectual property-related infringements, an entrepreneur must examine his or her product offerings as compared to similar offerings on the TaoBao network. The high instances of fraud that occur in the Chinese sales environment would require preliminary investigation and environmental analysis, using a variety of analysis tools, to determine whether intellectual property issues would pose a serious profit risk to the business. Because, as mentioned previously, there is a great deal of uncertainty regarding regulation in TaoBao (and other platforms as well), it would tend to recommend giving serious consideration to formulating a contingency plan in the event of high volumes of piracy or other fraud related to products similar to that offered by the entrepreneur in TaoBao. Risks at the buyer level An e-commerce survey of Chinese citizens identified the largest concerns that consumers maintain regarding perceived risk associated with online purchases. These include: Transaction security Aftersales service concerns Lack of expedited distribution networks (Li and Suomi, 2007). There are legitimate and perceived e-commerce concerns shared by many Chinese consumers that could serve to impact profit expectations. Though the TaoBao network offers guarantees for the quality, security and accuracy of online payment transactions through this medium, the concerns over security exist at the cultural level. It would be important for the individual entrepreneur looking toward this platform to find exposure to consider posting discussion or guarantees regarding transaction security to reinforce that all security protocols exist to make the transaction free of risk. Aftersale service concerns might include refunding the purchase price and return of unsatisfactory or defective stock, instructional know-how for certain products or even guarantees of replacement in the event that the product does not live up to the buyers’ standards. Because this is a high concern for surveyed Chinese consumers, returned as a concern by 45.7 percent of those surveyed (Li and Suomi), it is a serious consideration for the new business entrepreneur in TaoBao. There should be a clear and concise posting, based on the survey results, regarding aftersales service policies to avoid misconception or rejection of the product offered in favour of a more secure and guaranteed transaction from competition. There is a phenomenon associated with consumer behaviour known as post-purchase evaluation, the period after making a purchase when the consumer has sampled/tested their product and has formulated an opinion about its value and relevance compared to price (Boone, 2007). Post-purchase evaluation, when not positive, can damage word-of-mouth benefits and also prevent the same consumer from making future product purchases from the entrepreneurial seller. The lingering impact of post-purchase regret can have long-standing consequences to the seller’s reputation. Since the TaoBao platform supports a wide variety of publicised consumer opinion and sentiment, and aftersales service was cited as a considerably high concern, it should be a focus of consideration in relation to examining product quality to avoid negative post-purchase evaluation. Unlike other traditional sales forums, such as the bricks-and-mortar retail environment, negative post-purchase content can have more damaging effects since it is posted in public view for other buyers interested in the entrepreneur’s product offerings. The lack of expedited networks is not necessarily an issue directly related to the TaoBao sales platform, but stems from the physical distribution infrastructure that currently exists in China. An entrepreneur looking to move product quickly will need to consider capabilities of ground, sea and air deliveries in order to meet the demands of the Chinese culture. If delays in delivery are inevitable, based on survey results, this should be posted for the Chinese consumer to avoid misconception or negative sentiment against the product or its brand name. If guaranteed expedited service can be arranged, and at a price acceptable to a very price-conscious Chinese consumer, this should also be posted clearly in TaoBao to ensure demand expectations can be met. TaoBao feature risks WangWang, a built in feature on TaoBao that allows for direct, interactive communication between buyer and seller (china.org.con, 2010), can pose a real risk for the business in areas of word-of-mouth and product/brand reputation. As this platform becomes more developed with more chat and blogging characteristics, Chinese consumers have the freedom and flexibility to post their personal opinion about their experiences with the seller which may or may not be wholly accurate. In this situation, public presentation of information from disgruntled buyers or those who simply engage in fraudulent activities, could pose serious reputation risks for the seller. The presence of WangWang, and other interactive blog features on this platform, should be examined in terms of whether the content can be removed and/or regulated to avoid reputation damage. This might require contacting the administrators of TaoBao prior to launching a sales presence or conducting environmental analyses to review the quality and accuracy of what consumers are allowed to post in this environment. An entrepreneur offering a product with a wide variety of similar, competing products could find considerable brand damage if inaccurate blogging and comments can be posted freely and without the discretion of the seller or TaoBao itself. There is also a risk to the entrepreneur in using this environment as it tends to limit the control over the integrity of the sales network and hand this authority over to those who regulate and maintain the TaoBao platform. Because this sales network is controlled and regulated by a third party, with the ability to post product through a variety of different legal contracts, the seller remains out of control in the event of server issues, power outages in the local support region, or any other number of technological failures that might occur. An entrepreneur is going to want their product posted securely in an environment that is reliable and not subject to losses in exposure through third party problems. Removing or limiting control over simple tools such as website development and changes, up and down time for the sales environment, and even the appearance of certain web pages are largely out of the control of the seller when they become reliant on TaoBao to service their sales needs. An entrepreneur that values high control and the integrity of self-managed information technology support tools might consider TaoBao too risky for their product and sales need and consider launching an independent website instead. There is always a risk associated with using a third party network for product presentation and sales and a risk-averse entrepreneur should consider this when deciding whether to launch a presence on TaoBao. Cultural patriotism as a business risk A survey of Chinese consumers returned results that showed a strong level of nationalism and patriotism toward China (Boone, 2007). This type of patriotism is usually marked by a preference for domestically-produced goods over those of international products, especially those that indicate a positive affiliation with Chinese history and culture. This could pose a potential business risk for the entrepreneur when looking toward TaoBao, especially if the individual is not well-versed in Chinese culture and heritage and is unable to create a positive linkage between their product and the Chinese tendency to value Chinese-made products. What this situation could potentially create is the need to position the product effectively in a way that is superior to competing products, using Chinese nationalism to their advantage. Positioning, in marketing, is defined best as “concentrating on an idea or a word that defines the company in the minds of purchasers. Therefore, by understanding how the mind works, marketers can use it to their advantage and successfully drive demand for their products” (Trout, 2008, p.5). A knowledgeable entrepreneur that understands how to promote product and advertise it effectively might then be inclined to conduct either secondary or primary research in order to understand the level to which consumers are more driven to make nationalistic product purchases. Linking China and its heritage directly to the product, using appropriate and meaningful terminology, could pose an advantage to the seller if they are able to strike the proper proverbial cord with Chinese consumers who value heritage. However, lack of understanding of what drives the psychological mechanisms behind Chinese nationalism and patriotism might have a difficult time marketing the product in comparison to more educated and experienced competition that have had a foothold in Chinese markets for a long period of time. Lack of knowledge about Chinese heritage poses a small-scale risk if the majority of buyer segments represent those who hold strong values related to Chinese legacy and the entrepreneur makes little to no effort to create a linkage between brand/product name and the buyers’ needs. Language barriers There is a high level of mixed dialects that make up the Chinese culture. Many individuals speak Mandarin, English, Malay, Cantonese, Hokkien and Tamil (indexmundi.com, 2008). These different languages are scattered throughout the Chinese environment from region to region, creating a potential risk for the entrepreneur in creating interactive or advertising content that is relevant for all buyer groups. Unlike Western countries that are typically driven by a majority, singular language (such as English), TaoBao and its presence throughout China might demand ongoing content changes to include multiple language formats and messages. To the unskilled entrepreneur, such as one acting as a direct foreign investor in Chinese e-commerce, multiple language group buyers could jeopardise sales success. An individual entrepreneur looking to improve presence should consider the language barriers associated with a culture driven by a vast amount of languages and dialects before launching a business presence. Analysis of research findings Opportunities for the entrepreneur, through the TaoBao e-commerce platform, were identified as improved business-to-business applications and tools that facilitate better support and working relationships as well as improved infrastructure to ensure more visibility of product. Along with the high growth in consumer demand for mobile technologies that support Internet-focused applications and high subscriber rates to Internet service providers, opportunities for finding success with using TaoBao as a sales platform look to be substantial. Externalities that help to support TaoBao as a valid tool for improving sales and product visibility include higher consumer access to disposable funds and growth in the use of credit and debit cards needed to support most e-commerce transactions. In terms of the opportunities that TaoBao represents to the entrepreneur, the platform appears well-positioned with the support tools needed to assist an entrepreneur in improving business status and reputation or the new launch of a sales presence. However, despite the opportunities offered by the research conducted, there are many barriers to finding sales success. These included language barriers, uncertain regulatory influence, a substantial variety of culturally-related characteristics for buyers and employees of the business and the free information exchange from unsatisfied consumers who take advantage of WangWang to damage seller reputation. The majority of the challenges offered would seem to require a great deal of preliminary research prior to launching a solid and active sales presence on TaoBao. The following chapter describes the methodology behind a primary study designed to determine what individual entrepreneurs find opportunistic or challenging about launching a product on TaoBao based on knowledge of the e-commerce platform or personal sales experience. References Backaler, J. (2008), Chinese e-commerce tops $38.5 billion, what comes next?, The China Observer, p.3. Boone, L. (2007), Contemporary Marketing, 12th ed, Singapore: Thomson, p.160. Ernst, D. and Jiacheng, H. (2000), The future of e-commerce in China, Asia Pacific Issues, No. 46, p.4. Fu, A. (2007), China mobile phone step into the world. http://www.articlecircle.com/pdf/article-59263.pdf. (viewed July 16, 2010). Gsu.edu. (2008), Culture: Does culture matter?. http://www2.gsu.edu/~qmdkdl/ib871/culture.pdf (viewed July 13, 2010). Hargrave-Silk, A. (2004), Yao Ming signs up for McDonald’s contract, Media, Hong Kong, February 27, p.4. Indexmundi.com. (2008), Singapore demographics profile. http://www.indexmundi.com/singapore/demographics_profile.html (viewed July 16, 2010). Jennings, M.M. (2008), Business: It’s legal, ethical and global environment, 7th ed, Singapore: Thomson, p.643. Leung, J. (2003), Recent developments and challenges of e-commerce in China, Perspective. http://hongkong.accaglobal.com/pubs/hongkong/members/perspective/archive/2003/11/P026-P027.pdf (viewed July 15, 2010). Li, H. and Suomi, R. (2007), E-commerce development in China: opportunities or challenges?, p.4. Lu, Z. (2005), Internet development and e-commerce barriers in China, Chinese Business Review 4(7), p.38. Marin, L. (2010), Hofstede’s cultural dimensions – comparing by cultural parameters. http://laofutze.wordpress.com/2010/01/09/hofstedes-cultural-dimensions-2/ (viewed July 15, 2010). Researchinchina.com. (2010), China e-comerce profit model report 2006-2007. http://www.researchinchina.com/htmls/Report/2008/3468.html (viewed July 12, 2010). Suessmuth-Dyckerhoff, C., Hexter, J. and St-Maurice, I. (2008), Marketing to China’s new traditionalists, Far Eastern Economic Review. http://www.mckinsey.com/locations/greaterchina/mckonchina/pdfs/marketing_to_china.pdf (viewed July 18, 2010). Trout, J. (2008), The New Positioning: The latest on the world’s #1 business strategy, Genii Group. http://www.genii-group.com/pdf/book_review_the_new_positioning.pdf (viewed July 13, 2010). Wheller, J. (2009), Consumer trends TNS Perspective 2009 Oct. www.slideshore.net/joewheller/china-consumer-trends-tns-perspective-2009-oct (viewed July 18, 2010). Yoybuy.com. (2010), What is TaoBao.com. http://www.yoybuy.com/taobao_about.asp (viewed July 13, 2010). Zhou, H., Long, L. and Wang, Y. (2009), What is the most important predictor of employees’ turnover intention in Chinese call centre: job satisfaction, organisational commitment or career commitment, International Journal of Service Technology and Management, 12(2), p.129. Zhu, J. (2007), A reality check of e-commerce development in China: an analysis of challenges facing e-commerce in China. Read More
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Eco friends Solar Technologies Entry into the China

Banking on the spectacular growth of the Chinese economy and the ever increasing use for renewable energy, Ecofriends Solar Technologies (EST) endeavors to establish a production factory in china.... In an effort to enhance efficiency in the production of solar panels not only for consumption in china but all over the world, Ecofriends Solar Technologies endeavors to establish a manufacturing plant in china.... china acts as the most spectacular location for the factory because of its convenience in serving the two In addition, there are other benefits including availability of raw materials, affordable skilled labor and ready market....
8 Pages (2000 words) Assignment

Different type of market in oil & gas industry

Market trend in the global oil and gas industry has been undergoing a major development and has gained major attention towards meeting rising demands of consumers....
24 Pages (6000 words) Essay

Drastic Demographic Changes in China Bring Business Opportunities

"Drastic Demographic Changes in china Bring Business Opportunities" paper presents a review of the demographic changes, which have been taking place in china.... hellip; Keeping in the discussion presented above, it can be concluded that significant variations in the demographics in china offer an opportunity for businesses to grow and establish themselves.... The increase in urbanization in china is considered from a point of view that due to the economic growth concentrating in the urban areas of China thousands of Chinese citizens living in the rural area move to the bigger cities in order to earn a better living....
7 Pages (1750 words) Coursework
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