A New Breed of Chinese Tech Startups Focuses on Foreign Markets
A new wave of Chinese startup businesses is attracting a great deal of investments. Not only that, they are now beginning to operate outside China as well.
These tech startups are planning to operate overseas, since the local market is dominated by tech giants. Furthermore, the regulation over this sector is also beginning to tighten.
According Mr. Jeremy Roy, head of M&A at the China Renaissance Investment Bank, the growth in China is beginning to slow down. He further added that the domination of big companies is making it harder for people to do business, and the environment is less favorable. He also said that the startup culture is a fresh idea, and it has managed to gain investment in the initial stages.
Tencent and Alibaba are two of the biggest tech giants in China. They enjoy solid domination over the local scene and support a significant number of startup businesses. These big names are also expanding their horizons and moving into Southeast Asia, particularly India.
According to Andy Tian, the co-founder of Asian Innovations, big names like Tencent and Alibaba are the reason that small businesses are starting to move outside China. His startup Asian Innovations has more than 80% of its 80 million consumers outside China.
He also said that the older companies work well in the local scene. However, their practices don’t work on the global landscape which gives the startup business a chance to make it to the global scene.
The Chinese tech startups have managed to enter the foreign markets, but they still have a long way to go before they are able to change the world’s perception of Chinese products.
While commenting on the newly brewing startup scene in China, Wei Zhou, founder of the venture capital firm CCV, said that the growth of mobile and internet industries have made the world really flat. This has given Chinese businesses to penetrate the global market. However, they are faced with the biases people have globally about Chinese products, that they are low quality and less durable.
He further added that on the virtual front, nobody really cares where the product is coming from. As long as it is useful they will continue using it.
Combining the competencies of the tech startups with favorable conditions, the Chinese economy which has been acting rather sluggish recently, can regain its strengths. At the same time, the startup culture in China can change the way people all across the globe view Chinese products.