How to avoid typical mistakes concerning China!

11.02.09

China offers large potential for many enterprises – for purchasing and as a sales market. But there are also enterprises for which the country is undesirable at the moment. In order to avoid problems, these enterprises should take the following into consideration:

“Out of the eyes out of the sense” is the way some enterprise managers are thinking, as soon as the market China is not interesting as a purchase market or as sales market. This strategy could cause heavy problems to the enterprise.

“We recommend managers to have an eye on China” says Dirk Mussenbrock of Mussenbrock & Wang GmbH in Hamburg / Germany. “There are a minimum of activities, which each enterprise should focus on to avoid problems”.

From the view of Mussenbrock & Wang there are 6 points to be focused on:

1.    Observe
Even if China is not a current sales market for your company, you should observe this market. Evaluate the situation at least two times a year together with your sales and marketing team and adjust your strategy if required.
 
2.    Plagiarism
Observe your present sales markets intensively and sensitize your employees concerning pirate copies. Also inform your customers, distributors, and/or wholesalers, so that these partners will inform you immediately if they become aware of any pirate copies. Also try to observe markets, which you are not distributing to at the moment. 

3.    IPR / Trademarks
Ensure that all your trademarks are also registered in China. In worst cases your trademark is being registered by other enterprises in China - and you have no chance to file against that. In China “First to File“ is the legal practice. Please talk to your trademark lawyer about this topic.

4.    IPR / Patents, Utility Patent, Design Patent
Get in contact with your patent lawyer to decide a patent right strategy for China.  That concerns patents, design patents and utility patents. The topic patent searches should also be discussed.

5.    Competitive Intelligence
“You can only win a battle if you know your rival“. Pay attention to the activities of your competitors in China. Also pay attention to the companies from China, which could be your future competitors. Be prepared - Chinese enterprises are striving to the world market.

6.    Clients
What are your Clients doing? Do they sell your products or your product as a component of other products to China? Examine this regularly and evaluate the situation together with your clients.

These 6 points should be examined and/or converted in regular intervals. Thus the enterprises achieve necessary protection in regards to China. Expenditures and costs in the front end are a healthier business practice in relation to  subsequent costs in the back end which may arise due to neglect.

 

Company Profile

Mussenbrock & Wang GmbH is a consulting and a service enterprise with focus on China. The enterprise advises small and medium-size enterprises while entering the Chinese market as well as with the following activities.

Supplementing numerous services connected with the market entrance is offered. In addition also offers an „Office-in-Office” solution.

With offices in Hamburg/Germany and Dalian/China the personal contact is ensured to the clients in Germany - as well as to the networks and resources in China.

Partners are Dirk Mussenbrock from Hamburg, as well as Wang Lei, who is responsible for the office in Dalian. The enterprise is a company with limited liability – based and registered in Germany. 

 

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