Five Considerations for Start-ups & SMEs<\/strong><\/p>\n\n\n\n Last month, we joined a group of Australian Startups on a study tour to Shanghai. Asia Advisory was one of eight finalists in the Haymarket HQ<\/a> China Canvas Challenge<\/a> and we had spent the last seven weeks preparing our startup plans for entry into China. The program follows the lean startup canvas methodology and culminated in a study tour of Shanghai to learn from companies and advisors operating on the ground. <\/p>\n\n\n\n Looking beyond the 1%<\/strong><\/p>\n\n\n\n China is rapidly evolving from a place considered as the factory of Asia to an interconnected digital and service economy. In 2017, service imports accounted for USD$471 billion of imports, and this is forecast to exceed USD$10 trillion over the next 15 years (Source: World Integrated Trade Solutions).<\/p>\n\n\n\n There are many businesses who come to China without a clear understanding of why it’s the next step for their growth, nor the consideration for what it takes to get China market ready. There is a well-worn assumption that if your business can sell to just 1% of the target population in China, it will lead to unprecedented returns. However, there are many nuances to targeting Chinese customers which may not be apparent at first.<\/p>\n\n\n\n Looking specifically at the travel industry, China is well serviced by large online travel agents, catering to a discerning but well-researched customer. Getting a product-market fit aligned with such a large but diverse audience takes more consideration than just looking at audience size. Sure, cities such as Beijing and Shanghai with populations in excess of 25 million people may be the first step, but they are not representative of the Chinese population.<\/p>\n\n\n\n From a product perspective, Chinese online travel agents take a different approach to price comparison and booking: moving earlier into the planning process with destination information, reviews of traveller experiences and suggested itineraries of what to do. Consider a product hybrid of Tripadvisor combined with Expedia, Skyscanner and the travel section of the weekend newspapers, all in one. The pages are visually busy with text and graphics, a strong comparison to the minimalistic \u2018white space\u2019 layout of International Online Travel Agents. These websites act more like an encyclopaedia than an online travel agent which demonstrates that Chinese audiences seek and evaluate a large amount of information from a range of travel products available.<\/p>\n\n\n\n