The challenge for US software companies is not creating a market in China, but rather positioning US software products and marketing efforts to reach Chinese buyers effectively. Understanding cultural characteristics and differences in how Chinese businesses find and select products is essential. Traditional US marketing methods like direct mail and magazine advertisements have low impact:
- 57% of buyers rely on peer recommendations
- 41% use internet research to find the right products
Likewise, US companies must deliver their software to fit the Chinese buyer practices:
- 90% of Chinese buyers prefer to purchase licenses and install on their own machines
- Hosting and SaaS are not yet established services in China
Survey sponsor, Dextrys, the US-based Chinese outsourcing firm, suggests US companies seek guidance from experienced firms that have a strong familiarity with Chinese business process and can put their knowledge and "best practices" to work to capture available market share in China.
"China represents a unique growth opportunity for many of America's leading and emerging software companies, many of whom are challenged by today's economy," said Brian Keane, CEO of Dextrys. "It is important, however, that these software companies understand the subtle and fundamental differences of doing business in China. To achieve success, US companies should consider partnerships with organizations like Dextrys which have a well established presence in both markets and knowledge of US and China business practices."
