A brief summary of the Dos and Don’ts for a foreign company approaching any market for the first time. All sorts of research is vital. On the other hand, do not take e.g. legal issues for granted.

Dos

  • Do some initial background research
  • Carry out extensive market research before entering the market
  • Segment the market (by geography, income and customer habits)
  • Determine the best entry vehicle according to results of research
  • Determine the best routes to market and channel partners
  • Consult with legal experts to create an IPR strategy for China
  • Register trademarks prior to market entry
  • Carry out due diligence on prospective partners and employees

Dont’s

  • Rely on hearsay or third-hand market information from partners
  • Assume that similar market conditions apply throughout a country
  • Invest in a local presence prior to researching the market thoroughly
  • Choose partners or employees without proper due diligence
  • Assume that IP rights are automatically protected under Country law