China just does things differently. If you want to do business here you need to be prepared to go all in.
Let me give you an example…
Luckin coffee. They’re insane. They give scale a whole new meaning. They take huge risks. They put big money on the line backed with all of their resources and relationships. They’re ALWAYS all in.
It’s like playing high stakes poker with someone who never fails.
They see your hundred dollars and raise you 50 million. They try to build the ante to the point where anyone else is scared to enter the game.
And I’m seeing this across the commercial platforms as well. Brands are coming to us asking “how can we do this?”
You’ve got to get strategic. Do your research and choose an up and coming category. Stay away from the over-saturated and highly competitive categories like beauty… they’ll eat you alive.
Give yourself conditions where you can have a big runway and room to grow. Lock up your IP, take the time to build your reputation and establish social credentials with consumers.
Do this and you CAN win, even against the high rollers.