The Chinese investment marketplace is growing by leaps and bounds. But what about investing for Chinese players abroad? As more and more Chinese citizens become affluent, so their need to find ways to invest grows too. There has already been a large property bubble growing within China, (and there's some evidence this bubble may burst too), so the practice of investing in “brick and mortar” commodities is well established, and in many cases ingrained into potential investors. All this said, investing outside of China has never been more in demand for those with resources in the country.
Even given the positives of investment potential for the Chinese, there are certain hurdles that any investor moving money out of China to overcome. Those hurdled, China or any investing interest might needs to look at property markets in places like Cyprus, and London, both offering stable deals, but Cyprus in particular offering the added bonus of EU citizenship once you property ownership exceeds 300,000 Euros.
There are a number of different aspects that must be taken into consideration when trading anything into China. Here are a few things that must be strongly considered, and acted on:
One - Partnering up with established brokers and investors to get them to promote your properties. They will already have a database of potential investors, and a marketing plan in place. As long as you have something good to offer, they are likely to be interested in helping you get it in front of the right people. You can get acquainted with potential partners and brokers through agencies that help to introduce outside businesses into the Chinese market place.
Two - SEO and Internet Marketing is so very important to help build your company brand up to make sure that established brokers want to do business with you. It will also enable investors to have heard of you, and maybe even come to you directly, increasing your profit margin by avoiding a third party commission. Baidu is the main search engine for China, and there are various social media platforms to take advantage of, Sina Weibo being the largest. You must make sure that you employ a professional who understands the Chinese internet marketing world to make sure that you are advertising in the right places and maximising your online exposure. This is a huge part of making a positive impact in the Chinese market place, as just like in many other countries the internet plays a huge part in the consumers shopping, and information retrieving habits. Good Search Engine optimisation is as important here as in any other country. Any website will need to be built with the Chinese investor in mind, as well as in Mandarin. A specific site will have to be designed and created for the Chinese consumer. Your marketing agency should be able to take care of this for you.
Three - Make sure that your investment opportunities clearly depict what is expected and offered. Chinese consumers like to know what they are buying, or in this case investing in, in detail. They are analytical customers and clients, in general of course, and want to make sure that they have all the information available before making a decision. It is also a good idea to add plenty of added incentives, as I mentioned EU citizenship for a 300,000 Euro or above property in Cyprus, to make the investor feel they are getting more for their money. Chinese investors like to think they are getting the best product, service and value for their money. You do not have to offer citizenship to a country of course, but look at what the value of the investment is to your company, and make sure that an “extra” of value can be added to the deal in conjunction with that investment value. A free pen for $500,000 worth of business is not generous enough, and is likely to be seen as insulting.
Four - Make sure that there is support to handle queries and reservations within your organisation. They can be based at your company residence, or in a China office. They will need to be a Chinese speaking member of staff, working to Chinese times. Good customer care is incredibly important to Chinese investors, as it is to Chinese consumers of any product.
The potential for property investors within China is huge, and that market is only going to get bigger as more of the population find themselves with money that they want to invest. Saving and prudence are very common traits within Chinese culture, so secure property investment deals that offer a solid return are going to always be a big attraction. It is worth establishing your property business in China now, even if that is just through a well marketed, Chinese optimised website, testing the water, before your competition gets the chance to strike first. Be the first into new emerging markets.
Image credit: Discerning investor - courtesy © Elwynn & Fotolia.
This is a very great information related to investment,I like to mention a most reliable and experience guidance for this shanghai property rental.
Spot on. We've been building and promoting western RE websites with SEO/SEM & other digital marketing tactics here in Beijing, and any RE organization willing to do the work can sell property here without the physical presence. Much more scalable, much more effective!
Thanks for sharing. The market place is huge, and ever growing. Maybe we will both bump into each other some time lol.
You said it, Dan. Do drop me a line. Plenty of room for everybody, and no doubt some added value from comparing notes!
Foreigners who invest in Spanish property worth more than US$200,000 will be offered residency status as the beleaguered country attempts to boost sales of its unsold homes.
I can see this happening a lot more frequently too. Chinese investors like to get more value for their money, as I explained, and this is one way to do that. Thanks for the share. I am very grateful.