Even APPLE Failed in China

There is a very valuable lesson for the Businesses on Customer Behavior & Business Ecosystem in this article.

CHINA, The world's biggest market. Almost 30% SMARTPHONES manufactured globally are consumed in China only.

APPLE, Silicon Valley Giant, almost the TRILLION $$ company is trailing in CHINA, the biggest mobile/smartphone market.

Apple market share is merely ~8% in China which is even LESS THAN the Local Brands like OPPO, VIVO, XIAOMI and the Biggest Market share is that of HUAWEI almost ~40%.

There are many reasons why APPLE is not doing good or failing in Chinese Market whereas its doing superb in other American & European markets. Some of the reasons are Price, Affordability, Tough Competition from Low Cost Manufacturers, Market Slowdown.

LEARNING FROM APPLE'S FAILURE IN CHINA, EVERY BUSINESS MUST SEE THE FOLLOWING:

1. PRODUCT ACCEPTANCE:

The business ecosystem varies from Country to Country, State to State. You cannot apply the same strategies for every country or region or state.

For example: If you are manufacturing "BREAD", the basic essential thing for every human being and you are selling it only in ONE FORM that is acceptable in one country because of its traditional eating habits of that FORM, the same form MAY NOT work in the other country where people want the Bread in a different form as per their Culture.

2. PRICING:

Remember, BY DEFAULT, everyone is SHOPAHOLIC. People LOVE to spend money $$ on everyting however budget (the money in hand) is a Constraint. If you are selling a product for some price $ in one country, you cannot sell the same product in the same form in other country for the same price.

For example: If you are in app based taxi booking business like UBER and thinking that if an AMERICAN is paying average $10 for a 5 Mile Trip then an INDIAN will pay the same for the same distance travelled. NOPE, it will never be because in INDIAN ecosystem the other or similar mode of transport methods cost $2 for 5 Mile Trip then why would somone pay $10 for 5 Mile Trip?? The same business which is on boom in USA will fail in INDIA variables are not applied.

3. ACCEPTANCE & RETENTION:

A person who is in Barcelona may trust the brand and is a very well retained customer of a company however that person in Barcelona has almost nothing to do with the person in Sydney. The customer in Sydney will make his own decision when buying and will have very little influence of the customer in Barcelona.

For Example: If you are in a business of selling things ONLINE (E-Commerce) and its going good in GERMANY with excellent NPS, the same may not work in Philippines because the local ecosystem may not support that FAIR mode of Logistics, Handling, Payment Methods, Payment Behavior, Returns, Rewards etc. Thus the company needs to rework /remodel itself keeping the core idea in the picture that'll help to sustain & grow.

There are many other factors that heavily affects the BUSINESS SUSTAINABILITY & GROWTH in different regions with different people and a single model cannot be applied to everyone or for everyone.

Author:

Lakshman Singh

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