U.S. companies can face many challenges in efforts to sell their products in China. Among these are legal difficulties. Among the things that can give rise to such difficulties are the unique aspects of Chinese law and the unique concerns related to navigating business law matters in China. Given the possibility of challenging legal matters coming up in connection to doing business in China, knowledgeable legal guidance can be a critical thing for a U.S. company to have when making efforts to sell products in the Chinese market.

Another class of challenge U.S. companies can encounter in relation to selling goods in China are challenges related to competing with Chinese businesses. Recent numbers indicate that foreign brands have been facing strong challenges from domestic brands in China lately.

According to the numbers, foreign brands’ share of the consumer goods market in China has been shrinking in recent years. In 2006, this share was at 33.5 percent. Last year, it was down to 30.2 percent.

Why have domestic brands been gaining ground on foreign brands when it comes to consumer goods market share in China lately? One advantage some point to domestic brands having over foreign brands in China is better knowledge of the local consumer.

As this points to, when a U.S. business is trying to be competitive in China, another thing it can be important for it to stay aware of, in addition to the unique legal and regulatory matters related to doing business in China, are the unique needs and behaviors of the Chinese consumers it is targeting its goods towards.

Source: Bloomberg, “Chinese Shoppers Are Turning Their Backs on Foreign Brands,” July 4, 2017