Avenue51 will help foreign SME’s to get into the Chinese market.
What is Avenue51?
Created by Liu, a Chinese with long work in import / export sector and James Hardy, director of Alibaba.com, the company offers to its customers a complete package, including research, marketing, logistics and after- sales service to companies wishing to set up in China.
Avenue51 was founded one month after the 2 founders met each other at a conference on the industry, and quickly established itself as this promising market. But the beginnings were not so simple. The two partners did not want to invest too much, so they hired seven employees who accepted to not have a short term salary in exchange to receive stakes in the company. Immediately, the employees recognized the potential of the company and gave their best to make it work.
The first three months were hard until they get contacted by Royal Mail, wishing to set up in China. Their project was to set up an online stand on Tmall to help SMEs to move into the Chinese market.
The company now released a turnover of approximately 3 million euros and offer its services to many customers worldwide. Many of its 30 employees are based in the United States and in Canada.
The Chinese market
Many enterprises want to set up in China because of the growth. It’s a country which can provide you many opportunities and make you generate some huge amount of benefits. But you have to know that there is a huge gap between the way Chinese and western people do business. And Avenue51 wants to operate in that way.
Here are 10 new consumption trends in China.
The fact is also that the Chinese market is really hard to get into, and this explain why a lot of companies over here are not capable of benefiting sufficiently from this situation.
As an example, it is well known that the Chinese prefer to buy products online rather than into brick-and-mortar shops. This can be explaining by the fact that they know that if there are any problems, they will be able to pursue remedies against the website who sell the product. And the website will just have to backfire itself against its retailer.