How to enter Chinese markets with IoT solutions

Four critical business areas to consider when localizing a digital business in China: 

The four business areas can be further broken down into eight market entry factors, which define the localization requirements and help build a bullet-proof entry plan

 

Before committing to market entry, market demand should be validated through both top-down and bottom-up market research. This will reduce the risk of a failed investment

 

Top-Down Market Research

Understand the market from a top-down perspective:

  • Total addressable market size
  • Market growth rate
  • Government policies
  • Potential by market segment
  • Major market players / key competitors

Bottom-up Market Research

Validate the market potential from bottom-up perspective:

  • Total available market
  • Market readiness in each market segment
  • Major market trends and expected growth rate

Segmentation and Prioritization

Prioritize the segments for quick wins by:

  • Adoption readiness
  • Current solution penetration § Potential win rate
  • Localization requirements

Obtainable Market Size Estimation

Project capturable revenue in short term and long term, considering:

  • Market size
  • Market growth potential § Competition
  • Government actions

 

Top-Down Market Research

Understand the market from a top-down perspective:

  • Total addressable market size
  • Market growth rate
  • Government policies
  • Potential by market segment
  • Major market players / key competitors

 

Bottom-up Market Research

Validate the market potential from bottom-up perspective:

  • Total available market
  • Market readiness in each market segment
  • Major market trends and expected growth rate

 

Segmentation and Prioritization

Prioritize the segments for quick wins by:

  • Adoption readiness
  • Current solution penetration § Potential win rate
  • Localization requirements

 

Obtainable Market Size Estimation

Project capturable revenue in short term and long term, considering:

  • Market size
  • Market growth potential
  • Competition
  • Government actions

 

 

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