In this article, we will speak about thoughts found in China Law Blog, who presents the 5 best business opportunities, revisited, as they say!
Is your idea in this Top5?
Most of the time, old recipes are the best. For business, especially in Asia, China for what interests us, this is very true.
If this Top5 seems simple, that is because the best opportunities are most of the time in simple ideas, classic sectors. Being innovative is very good, but 2 thoughts about this before entering this Top5:
- Innovation is less pregnant in countries/regions where classic and primary sectors are not fully mature ;
- Innovation can be found in every sort of business, even the ones which seem very “old school”.
But now, lets go for this Top5, thanks again to Dan Harris for this brilliant article, which can be found in its entire form on this page: http://www.chinalawblog.com/2013/07/chinas-five-best-business-opportunities-revisted.html
Education. Everyone knows China is big on education and everyone knows China is particularly big about its best and its brightest (well, its richest anyway) getting a foreign or a foreign-like education. So even though some aspects of China’s education business are shut off to foreigners, this does remain a prime area for foreign business. More anecdotally, our education clients, spanning a massive range of businesses, are almost universally thriving by doing business in China or with China.
Healthcare. Everyone knows China is aging, getting wealthier, and seeking to improve its healthcare. All of this is almost a perfect storm for those in the healthcare field. But healthcare is a big field and much of it is a minefield of regulation, corruption and/or other assorted difficulties. Though no doubt this is overall a great field, it certainly has its issues.
Food. Everyone knows China wants better and safer food and I am an unabashed optimist about the role of foreign food in China. Without exception, every one of our clients that has fought through the requirements to be able to get their food product (of all kinds) into China, be that on their own or through a distributer, is thriving in China.
Clean-tech/green-tech. Everyone knows China has nearly limitless pollution problems and everyone knows that the Chinese government is concerned about that. But this is a tough field for foreigners because it is one in which government connections are too often critical. We have clients that have succeeded spectacularly and we also have clients with top tier products and management who just cannot (and will not) buy a break in China.
Software. Everyone knows China (like everyone else) wants better software. The biggest hurdle I see for software companies in China is pricing. A number of our software clients have told me that Chinese consumers and businesses are “not accustomed” to paying high prices for software and their Chinese competitors are accustomed to selling software at rock bottom prices. On the other hand, our clients that sell highly specialized industrial/commercial software seem to be doing just fine.