In recent years, the Chinese market has been seen as a golden opportunity for Thai businesses, whether for consumer goods, dietary supplements, beauty products, or lifestyle products.
However, despite the high market potential, many businesses fail to expand into the market on their own. The main reason is not solely due to product quality, but also because of the complex and significantly different challenges of marketing in China compared to other markets.
Many brands start with good intentions but lack a deep understanding of consumer behavior, digital platforms, culture, and cost structures. This results in investments failing to yield the expected results and becomes a risk in expanding into the Chinese market, impacting both cash flow and long-term business direction.
McKinsey This highlights that the success of foreign brands in China does not depend solely on the product itself, but also on a deep understanding of consumer behavior and local platforms. This aligns with the challenges Thai businesses often face when attempting to expand into the Chinese market independently.
A lack of true understanding of Chinese consumer behavior.
One of the most common problems in marketing to China is using Thai or global market frameworks to explain Chinese consumer behavior. This is a mistake Thai businesses make when entering the Chinese market.
Because Chinese consumers have distinctly different purchasing decision patterns, especially their reliance on real user reviews, actual user experiences, and opinions from trusted individuals.
Chinese consumers don't buy products solely based on advertising, but on trust accumulated from multiple sources of information. If businesses don't understand this Chinese customer journey from the start, it will lead to ineffective communication and wasted marketing costs, representing a significant risk in expanding into the Chinese market due to incomplete market analysis.
Why do Thai businesses fail to succeed in the Chinese market when trying to market themselves? Because the Chinese market is highly complex, in terms of consumer behavior, platforms, and culture. A lack of in-depth understanding leads to ineffective strategies and wasteful spending.
Choosing a Chinese platform is not suitable for the product and target audience.
Another problem in marketing in China is choosing the wrong Chinese platform. This often stems from selecting platforms based on popularity rather than analyzing their suitability for the actual product and target audience. Many Thai businesses try to launch on every platform simultaneously without prioritizing.
In reality, each Chinese platform plays a different role, whether in terms of building awareness, generating reviews, or closing sales.
Choosing a platform that doesn't align with consumer behavior will result in content not being seen and budget being used inefficiently, clearly reflecting the strategic risks of expanding into the Chinese market.
Using literal translations does not align with Chinese culture.
Many brands view translation as the final step in their marketing strategy, but in reality, it's one of the most significant challenges in marketing to China that negatively impacts brand image.
Successful Chinese-language content in China needs to be rewritten, not just translated. The plot, tone, vocabulary, and illustrations must all be consistent with the cultural context. Using inappropriate text or images can lead to a lack of trust from consumers and reduce the chances of building long-term brand relationships.
Choosing Chinese KOLs or influencers without analyzing their actual quality.
Using KOLs (Key Opinion Leaders) is a key strategy in the Chinese market, but choosing the wrong ones can lead to high marketing costs without generating actual sales.
Many Thai businesses make decisions based solely on follower count without analyzing the quality of engagement, credibility, or relevance to their target audience. The result is content being seen but not leading to purchases, unnecessarily increasing the risk of expansion into the Chinese market and resulting in a lower-than-expected ROI for their Chinese marketing campaigns.
If you want to learn more about Chinese KOLs or Influencers, you can read more here. Get to know Chinese influencers better: The roles of different types of KOLs and marketing opportunities.
Incorrect assessment of costs and payback period.
Another problem with marketing in China is underestimating costs. Many businesses expect short-term results without considering hidden costs such as advertising expenses, content production costs, KOL fees, and technical operational costs.
The Chinese market takes time to build trust. Misjudging the payback period may cause businesses to terminate campaigns before the brand starts to see results, resulting in the investment not fully generating value.
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Lack of measurement and strategy adjustment based on real data.
Many businesses still face challenges in marketing in China due to the lack of a clear measurement system. They rely solely on superficial figures such as follower counts or views without conducting in-depth analysis of the Chinese market.
Marketing in China requires data-driven decision-making, from content optimization and selecting Chinese KOLs (Key Opinion Leaders) to budget allocation. Without systematically measuring the performance of Chinese campaigns, it's impossible to continuously develop strategies for market expansion and increases the long-term risks associated with expanding into the Chinese market.
In summary, challenges in marketing in China and the risks of expanding into the Chinese market that Thai businesses should know before deciding to invest.
In summary, the challenges Thai businesses face in the Chinese market don't stem from a lack of opportunity, but rather from a lack of in-depth understanding and systematic planning, encompassing consumer behavior, platforms, content, and measurement of results.
If businesses are not prepared in these areas, they face risks when expanding into the Chinese market that affect budget, time, and competitiveness. Understanding these pitfalls from the outset will help make more informed decisions when investing in the Chinese market and increase the chances of sustainable success.
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