Sensitivity: Internal Wei-Han (Annie) Hsieh Doing Business in China: Market Entry Strategies for a Foreign Print-On- Demand Company Metropolia University of Applied Sciences Degree: Bachelor of Business Administration European Business Administration Bachelor’s Thesis Date: 30th April 2020
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Sensitivity: Internal
Wei-Han (Annie) Hsieh
Doing Business in China: Market Entry Strategies for a Foreign Print-On-Demand Company
Metropolia University of Applied Sciences
Degree: Bachelor of Business Administration
European Business Administration
Bachelor’s Thesis
Date: 30th April 2020
Abstract
Sensitivity: Internal
Author Title Number of Pages Date
Wei-Han (Annie) Hsieh Doing Business in China: Market entry strategies for a foreign print on demand company 60 pages 30th April 2020
Degree Bachelor of Business Administration
Degree Programme European Business Administration
Instructor/Tutor John Greene, Senior Lecturer
This bachelor thesis is an intensive research for company Printful AS. Research is focuses on
strategic decision of how foreign print on demand company can successfully enter Chinese
market. Printful is founded in 2013 and it is a Latvian print on demand company that based in the
United States and Latvia. They have over 500 employees all over the world. Due to the company
rapid expansion, they aim to target the market in China and they are looking for the best strategy
and advice to enter the market successfully.
Purpose of this thesis is to focus on choosing a right market entry strategy and determine some
factors that can affect decision as well as print on demand and E-commerce theory, PESTLE
analysis that evaluates several macro-factors and marketing tools. Cultural dimensions are also
discussed in this thesis as there are different ways of communication style that may influence
doing business between China and Latvia. Aim of this research is to come up with advices and
ideas for Printful AS to define which methods would suit best Printful’s purposes and objectives.
Context for theoretical part is the basis for this research, mainly gathered using printed materials
like books, electronic books, professional blogs and articles. In order to evaluate research data
and identify issues, threats and opportunities, qualitative research was carried out in a face-to-
face interview between two professionals.
According to research finding, it shows strong indication of adopting to local culture and corporate
culture with local partner when entering Chinese market is a key to success. The best strategy
for Printful AS is to enter either a joint venture or a strategic partnership.
Keywords Print on demand, E-commerce, market entry mode, China, Chinese
1.2 Research objectives ....................................................................................... 5
1.3 Case company introduction .......................................................................... 6
2 Literature review ........................................................................................... 7
2.1 E-commerce in China ..................................................................................... 7 2.1.1 Definition of E-commerce ..................................................................................... 8 2.1.2 Categories of E-commerce ................................................................................... 9 2.1.3 Benefits of E-commerce ...................................................................................... 10 2.1.4 Limitation of E-commerce ................................................................................... 10 2.1.5 Chinese E-commerce platforms ......................................................................... 11
2.2 Print-on-demand and dropshipping ........................................................... 13 2.2.1 Definition ................................................................................................................ 13
2.3 Cultural dimension in China and Latvia ..................................................... 14 2.3.1 Power distance ....................................................................................................... 15 2.3.2 Individualism and Collectivism ............................................................................... 15 2.3.3 Masculinity and Femininity ..................................................................................... 16 2.3.4 Uncertainty avoidance ........................................................................................... 16 2.3.5 Long-term orientation and Short-term normative orientation ................................. 17 2.3.6 Indulgence vs. Resistant ........................................................................................ 17 2.3.7 Cultural dimension in China and Latvia ................................................................. 18 2.3.8 Chinese business custom ...................................................................................... 19
2.5 Marketing in China ........................................................................................ 29 2.5.1 Social indicators ..................................................................................................... 30 2.5.2 Demographical indicators ...................................................................................... 31 2.5.3 Social media platforms ........................................................................................... 31
Appendix B: Company registration process in China .......................................... 56
Appendix C: Taxation in China................................................................................ 57
List of Figures
Figure 1 Printful online mockup generator..................................................................................... 6 Figure 2 Alibaba continues to lead retail E-commerce sales in China ........................................ 12 Figure 3 China’s and Latvia’s Cultural Dimensions by Geert Hofstede ...................................... 18 Figure 4 Air pollution rates in Beijing, Guangzhou and Shanghai ............................................... 28 Figure 5 Users of Weibo and Twitter (source: https://theatlas.com/charts/BydWFfW9e) .......... 32 Figure 6 The research process according to Gratton &Jones ..................................................... 44 List of Tables
Table 1 Growth of social media users (Sources: Stastica).......................................................... 30
List of Abbreviation
POD: Print on demand
WFOE: Wholly foreign-owned foreign enterprise
KOL: Key opinion leader
SME: Small-medium sized enterprise
B2B: Business to business
B2C: Business to consumer
C2C: Consumer to consumer
C2B: Consumer to business
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1 Introduction
This thesis explores the potential mode of entry into the Chinese market for a Latvian
startup company Printful. Research includes print on demand market in China, foreign
market entry mode, factors that influence choice of market entry strategy and business
ecosystem in China. Result of this thesis is to define which market entry mode is suitable
for Printful and what strategies shall be taken into considerations when entering Chinese
market.
1.1 Background
In the world of E-commerce it can quickly get lost and move to the wrong direction and
apply wrong strategies. With abundance of choice between different business models
and service providers, companies may find themselves wondering what it is actually
needed and what are correct steps.
China is still a developing country on the way to becoming a market leader in the world.
China attracts various industries to come and do business in China. One of key factors
for its growth is a rise of E-commerce platforms. According to a comparative analysis
between China and United States from IMS (Integrated Management System), China
has 2 times more Internet users than in the United States and has 11 times more mobile
payment transactions. Despite its leading position, China’s Internet penetration rate is
only about 50 percent compared to United States, which is about 89 percent. Internet
growth in China is expected to raise even more in upcoming years.
Despite huge Chinese market and potential profits that can be earned, China remains to
be a risky marketplace for foreign enterprises. To name a few top American tech
companies, such as Google, Amazon, eBay, and Uber have successfully grown
internationally by offering their goods or services but found the Chinese market more
complicated to succeed in.According to report from China Business week more than 48
percent of foreign companies fail in China within 2 years of entering the market.
(Marquis& Yang, 2013, p.1)
One of the top reasons why companies fail in China include misunderstanding
consumers’ needs and ignoring local culture aspects, in which Western companies keep
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their home management culture instead of hiring local people or consultants. For
Western companies that are used to less strict governments, doing business in China
would result in major cultural shock.
This research case chosen company called Printful AS, which is considered to be one of
the largest print on demand companies in the world. Printful AS mainly operate their
business in the United States, and their headquarter office is in Riga, Latvia. Company
is successfully operating its business in Japan, Mexico and Spain. They also aim to
expand their business to China due to the fast-growing manufacturing, technology and
online entrepreneurship market.
Main concept of print-on-demand and dropship in China is increasing, offering Western
countries opportunity to provide innovative technologies. Therefore, this research needs
detailed information on various market entry modes which might be used to support
Chinese market.
1.2 Research objectives
This thesis focuses on following key concepts: market entry mode, E-commerce, print-
on-demand and cultural dimensions. Main focus is on market entry mode for foreign
companies wishing to do business in China and understanding print-on-demand and E-
commerce market. Chinese business ecosystem is also discussed as a factor that affects
market entry decision for Printful. These concepts are researched in primary and
secondary data analysis and findings have been carefully obtained and evaluated.
Research question is:
• What is the strategy for a foreign print-on-demand e-business to enter the
Chinese market successfully?
The goal of this research question is to review and provide suggestions. Research
can be separated into two main steps. First step is to show what risks foreign
company faces entering Chinese market. Tt combines a formal way of PESTLE
analysis and informal context of cultural distance challenges. Second step is to
analyze different kinds of market entry modes and factors that can affect decision
making.
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1.3 Case company introduction
The case company Printful AS is located in Riga, Latvia, founded by Lauris Liberts in
2013. Company employs over 500 people around the world. It is regarded as one of the
biggest print-on-demand or dropshipping company in the world. Printful focus their
business mainly in the United States. As the company is growing exceptionally, they
have several fulfillment centers around the world, including Mexico, United States and
Latvia. (Printful 2020; Kumar, 2020)
Printful is an online marketplace that connects independent artists, buyers and end
customers. It is well-known for their Print on Demand (POD) service for online store
owners. This means all of the products are made to order. When end customer places
an order with one of Printful’s store owners, they will make the product and goods are
delivered directly to the end customers. Thus, Merchants do not need to worry about
logistic, production and storage for the goods. Printful also fully integrated with a lot of
E-commerce partners in the world, such as Shopify, WooCommerce, Squarespace and
online marketplaces like Amazon and Ebay (Printful, 2020; Shubert, p.69)
There are useful tools that help designers to display products and designs while
maintaining business. Apart from the mockup generator on the site, they also offer
branding options such as personal stickers and customizable packing slips to customers.
It is also possible to add your own company logo inside the apparel. In this case, people
won’t even recognize their orders are coming from Printful. Merchants can easily
establish own branding without too much upfront investment. (Printful, 2020; Shubert,
p.90)
Figure 1 Printful online mockup generator
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Further, there are a lot of advantages that Printful offers for their customers. First of all,
by using warehousing and fulfilment service, you can ship your inventory to Printful and
they will store it for you. These items can also be integrated with your online shop, and
once an order comes, they will fulfil your products. Meanwhile, if you don’t have your
own designs, people can hire inhouse designers to work with you to design a
personalized plan for your brand. (Shubert, p.90)
2 Literature review
In order to answer the thesis question, it is first important to review the literature on the
topic of business strategy, international expansion and other related theories, which is
based on 40 articles.
This chapter focuses on E-commerce and print on demand theory, culture dimensions
assessment by using Hofstede theory, PESTLE analysis for identifying macro-
environment of a market, marketing perspective in China and market entry mode
strategies. In addition, for interview questions and further information concerning real
practice on how to set up a company in China are listed in Appendix A, B, C.
2.1 E-commerce in China
E-commerce emerged in China since 1990 when new innovations such as Electronic -
data Interchange (EDI) and Electronic-Funds Transfer (EFT) entered China. E-
commerce was described only as electronically business transactions. Beginning of
China’s E-commerce is dated from 1993 to 1995, when technologies that allowed users
to exchange business information and to conduct electronic transactions started.
(Klooster, 2017)
Although in the West people tend to shop from their vendors that are on the Internet,
including eBay, Facebook, Amazon, PayPal, but China has their own E-commerce giants
that provide their own services to locals and to the rest of the world. However, these
Chinese companies cannot be compared to the Western E-commerce players, due to
difference in technology, platform function and distinctive way to operate. For this reason,
it is challenging to define which platforms are better in the West or in the East.
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In this chapter theory and significance of E-commerce as well as introduction the current
giant E-commerce players in China will be investigated.
2.1.1 Definition of E-commerce
As the constant technology involvement, Internet has brought wider changes around the
world in the life of modern society. Improvements and changes in organization structures
can be rendered by current communication and information technologies. Such changes
include business process and affect competitive advantage of the companies. (Wigand,
2017, p.5)
E-commerce is the basis of international economic relations that influence international
trade. E-commerce also facilitates many other types of business interactions. For
example, creation of international specialization and cooperation, science and
technological cooperation, the expansion of trade between countries. These activities
lead to significant reductions in trading, advertisement cost, increase workflow efficiency,
secure electronic transactions and enhanced logistic arrangement of good and service
delivery. (Wigand, 2017, p.5)
E-commerce also includes:
- Electronic Data Interchange: It is an online or offline exchange of commercial or
business documents in a standard electronic format between business partners,
it is also referred as EDI. (Farlex Financial Dictionary, 2012)
- Electronic Funds Transfer: This requires computerized systems that make
transactions easier. Examples of transfer of electronic funds engage cash from
an ATM by receiving an order for the stock to be purchased over the Internet,
also referred as EFT. (Farlex Financial Dictionary, 2012)
- Electronic Marketing or Internet advertising: The aim of Internet marketing is to
offer promotional marketing materials to customers, through mixed marketing
activities. This includes email marketing, search engine optimization, social
media marketing and many different types of display advertising and mobile
advertising. Company can launch ad campaigns and also reward members with
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discounts or exclusive offers. These strategies would allow a brand to leverage
the Internet reach and potential. (Farlex Financial Dictionary, 2012)
- Online banking or Internet banking: It is the banking management system via the
Internet, such as Apple Pay and Goggle wallet which is also called "mobile wallet
service". It helps customers of financial institution to perform financial
transactions on a secure website that can be a retail bank or a virtual bank and
this can be very helpful by incorporating digital wallet encryption services. (Farlex
Financial Dictionary, 2012)
2.1.2 Categories of E-commerce
E-commerce or E-business can be described as an automatic collection of business
processes by using Internet technology. E-business impacts internal operation in the
company, such as staff engagement, process management, marketing and
collaborations. (Wigand, 2014, p.1)
According to Rolf T. Wigand’s theory, E-commerce can be defined in four categories:
1) Business-to-Business: Referred as B2B, it includes all level of business
interaction between the companies. For example, Printful belongs to this
category. Retailers can partner with supplier that stores inventory and sends
orders to end customer directly upon purchase. Thus, sellers can save on
production costs and do not keep goods in inventory. This business model
appears to deliver a rapid business process, because retailers only need to be
present online and serve as intermediaries between customers and the factory.
(Yablonskaya, 2020)
2) Business-to-Consumer: Referred as B2C. It is the most common type of E-
commerce. B2C implies engagement of clients with business through an online
store. B2C is the process of selling directly among a business and customers
who are end-users of their goods or services. (Business News Daily, 2015)
3) Consumer-to-Business: Referred as C2B. It is a type of system in which
customers publish a purchasing project online with a fixed budget and companies
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make a bid on the project. Consumers review the offers and select a company.
(Business News Daily 2015)
4) Consumer-to-consumer: Referred as C2C. It's all about online ads, forums, or
marketplaces where people can buy and sell their products. For example, Uber
and Airbnb allow consumers to monetized people’s own assets in return for
services. (Business News Daily 2015)
2.1.3 Benefits of E-commerce
Electronic commerce is an instrument for the creation of modern business models. It
allows you to sell products in your online store anytime you want and you don't need any
special licenses, suppliers, complicated accounting systems or physical stores in any
country. Сustomers don't have to leave home to purchase product they want, simply click
on the "order" button and courier will deliver his requested item directly to his place of
residence. (Martinsons, 2018, p.1)
E-commerce allows consumers to purchase goods or services at any time as long as
user has Internet access, irrespective of where they are located. Time and space
limitations associated with purchases of products or services are removed. In terms of
price, efficiency and seller's credibility consumer is capable of comparing deals of various
traders online. (Martinsons, 2018, p.1)
Key benefit of E-commerce is to provide all information about this product to your present
or prospect customers, they can easily pay online anytime and anywhere in the world.
(Martinsons, 2018, p.1; Klooster, 2017)
2.1.4 Limitation of E-commerce
Despite all advantages of E-commerce, there are few disadvantages of E-commerce
platforms.
- Concerning confidentiality and protection, since Internet means open access and
are vulnerable to external control. All information like email address is distributed
through the Internet by the plurality of computer systems before its final
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destination is reached. With that being said, it is trackable and storable. Personal
details such as credit card information, private information may be captured by
hackers or computer thieves. Introduction of electronic bugs or VPN corporate
websites making them hardly accessible as a result. (Išoraitė, Margarita and
Miniotienė, Neringa, 2018, p.197)
- As far as price is concerned, the failure to seek, check and experience the product
is another major drawback. Because of this reason, many people in online shops
don't purchase clothes and shoes. Many online shops offer customer
comprehensive product summary and option to return or change product if buyer
is not satisfied with quality or product does not physically fit buyer. (Išoraitė,
Margarita and Miniotienė, Neringa, 2018, p.197)
- As far as hidden costs are concerned. All potential expenses, such as, delivery
fee, handling and potential taxes, can be described most frequently on the
website. Often consumers bear responsibility for expenses such as taxes or
shipping fees, which take time to decide if total amount of additional expenses is
worth or not and might actually exceed the original sales amount. (Išoraitė,
Margarita and Miniotienė, Neringa, 2018, p.197)
2.1.5 Chinese E-commerce platforms
Alibaba group
Alibaba Group Holding Limited was founded by Jack Ma in 1999. It was initially used as
a B2B platform for customers from China and abroad. The business is currently offering
in C2C, B2B, online payment, search engine and data center computing services all over
the world. (Alibaba Group 2016) Users can access the platform anytime from anywhere
through Alibaba, via a PC or a mobile phone, which not only allows users to navigate the
website easily, but also provides additional functions via integrated applications, such as
price comparison analysis on interest products, payment services or the social network
which allows them to choose different vendors that follow the latest developments which
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allows them to choose different vendors that follow the latest developments. (Group 2016
Alibaba)
Figure 2 Alibaba continues to lead retail E-commerce sales in China
In the retail market, Taobao and Tmall is considered to be the largest and most influential
online market in this sector.
Taobao
Taobao is China's largest C2C and B2C platform network market. Taobao in Chinese
meaning “to find a treasure”. Alibaba Group launched the website in 2003. Taobao
Marketplace provides the retail industry with a share forum for small businesses and
companies to open online stores that primarily serve Chinese-speaking (China, Hong
Kong, Macau, Taiwan) customers and foreigners as well. The sales charged via online
phone accounts. The industry is opened via Taobao marketplace for customers. Usually,
their stores provide their customers express delivery service. (Taobao, 2020)
Tmall
Tmall was launched in 2008, which offers wide range of unique stores and manufacturing
companies and other retailers for consumers. Tmall is the platform that offers high quality
goods and services which can not be easily found for consumers. Every provider on this
platform has its own brand. High-quality premium brands from around the world operate
on this site. (Alibaba Group 2016)
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JD (Jingdong Mall)
JD.com and Jingdong Mall are China's largest online company B2C platform, founded
by Liu Qiangdong in 1998, but only began operating as a B2C in 2004 and is the direct
competitor of Tmall. (JD.com 2013)
Amazon.cn
Amazon.cn is introduced as a Chinese subsidiary of Amazon.com in the United States
and is one of the first shopping sites to offer a wide variety of products and services from
all over the world. (Amazon.cn 2016)
2.2 Print-on-demand and dropshipping
There are many companies that offer seemingly similar, but often slightly different
products and services, so you need to grasp these differences to choose the best partner
for your business, especially when you want to enter Chinese market.
To begin with, it is important to clarify a few misconceptions about the term “dropshipping
or print-on-demand”. There are many entrepreneurs who make the statement that they
want to start a dropship or print-on-demand business, in fact, what they mean is they
want to become a retailer who uses the best priced products from their resources and
beat the competitors. (Shubert, 2018, p.68)
2.2.1 Definition
Both print-on-demand and drop shipping are very similar. POD stands for “print-on-
demand”, and its printing products include T-shirts, swimming wears, backpacks, and
many other types. Usually print on demand companies would include printing, designing,
editing, and shipping. Your designs are printed on products only as orders come in and
only in the quantity that the order asks for. (Ferreira, 2019)
Drop shipping has a business model in which store doesn’t keep an inventory of the
products it sells but purchases them from third party supplier who then ships the products
directly to end-consumers. However, dropshipping allows to pick from millions of items
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for sell. Dropshipper will also ship goods on your behalf directly to your customers. (Park,
Changkyu, 2017)
POD products are very popular and a variety of advantages. Customers can buy for
personal use or sell to other people with your own unique design. Therefore, it is a great
platform for artists or graphic designers to show off their art masterpieces, and this can
increase an additional income for them to use as promotion. It is also very popular
amongst online influencers that create some marketing campaigns on their website.
Dropshipping and POD are very similar terms and their order processing is mostly
automated. There is no need to have bulk inventory available in advance because
supplier packages and ships goods directly to the customer, so they just have to click a
button to submit supplier product details. Therefore, both drop shipping and POD has
very low risk, because they do not need to purchase an up-front inventory, and just pay
after customer places order in online store or website. On the other hand, print on
demand requires strong design skills comparing to dropshipping. Thus, this allows both
business models to focus on marketing, customer service and advertising. (Spandega,
2018)
In terms of profitability, usually drop shipping has greater profit margin, because there
are millions of products to choose from and much lower shipping cost compared to print
on demand, you can sell any type of item and for this reason you can scale quickly. For
print-on-demand, you have limited mockup generators to choose from and it requires
strong design skills, but both target different type of customers. For instance, print-on-
demand is suitable for online influencers who have substantial followers and wish to
create some promotional products on the side, every products and packaging is
customizable to create strong brand image. On the other hand, drop shipping is suitable
for those who just start their entrepreneurial journey in selling items online with much
lower shipping cost. (Spandega, 2018)
2.3 Cultural dimension in China and Latvia
Due to the rapid growth of the Chinese economy, an overview of the cultural aspects that
define the culture itself is important to be studied and compared to the country of origin.
China's strategy and way of operating is somewhat different from the West. In addition,
Chinas society is still conservative and the characteristics that come from Asian culture
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are still commonly used. It is important to understand the culture in order to conduct a
successful relationship with them.
In this chapter, the research is focused on the analysis performed by Professor Geert
Hofstede, who has measured scores in 76 countries and regions in 2001. (Geert
Hofstede n.d.) Hofesedte describes culture at the national level as a collective
programming of the mind. Hofstede researched IBM workers from several different
nationalities and national cultures in four different dimensions in his early work- power
distance, individualism and collectivism, masculinity and femininity, and uncertainty
avoidance. (Hofstede G.,1980b)
In this chapter each model and how it differs from Chinese culture versus European
culture will be discussed.
2.3.1 Power distance
This chapter concentrates on the metric showing how well leaders of a community
succeed in their cultural hierarchy. The higher the index, the more it corresponds with
authoritarian society, the lower it is, the more democratic it is. Term "power distance,"
can reflect to inequality between individuals and people’s attitude towards it. (Geert
Hofstede n.d.)
Chinese society has a very high hierarchical character which strongly influences
business world. Relationship between employer and employee is typically pure
contractual. Lower ranged workers regularly interact hierarchically with their superiors.
This means that workers should interact with their supervisors in such a way as to be
subjective and respectful, even though they do not consent to what their supervisors are
saying. However, the power of Chinese business culture is characterized by large gap
of power distance. (Geert Hofstede n.d.)
2.3.2 Individualism and Collectivism
This aspect is about how individuals in a particular culture should be part of a group
rather than individualistic in their own thought and behavior. Individualism is a type of
ideology that emphasizes importance of individual's personal goals and interests.
Individuals with high individualism rates are leaving the group goals behind and focus
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more on their own goals. On the contrary, collectivism indicates that there is greater
importance on the common goals and healthy relationship with the members of the
group. The self-reflection of an individual in this category is defined as “We”. (Geert
Hofstede n.d.)
Research shows that, China favors the group implies that this aspect described as a low
individualism. Main reason for this is because Chinese are mainly strongly influenced
from their core belief in which family relationships are very important. Therefore, the
purpose of a collective society is to preserve and maintain the harmony. (Geert Hofstede
n.d.)
2.3.3 Masculinity and Femininity
According to Hofstede, the high degree of masculinity represents strength, power and
purpose. In masculine dominate cultures, there are huge gaps in gender roles,
commitment, ambition, and independence level. People in masculine cultures are highly
driven and they see the value of life in their career and highly appreciate the rewards
from it. Therefore, there are major gaps in respecting men and women more in the
evaluation of men and women in these societies. Achievement and competitiveness are
considered to be main sources of job satisfaction. (Geert Hofstede n.d.)
On the other hand, femininity means the desire for harmony and concerning for the poor.
Both men and women should be respect each other, being humble and they should be
concerned about quality of life. Gender roles are also not so clearly established in
femininity cultures. They emphasize on interdependence, support each other and aims
for a healthy peaceful environment. The goal for femininity is that everything can be
solved by negotiation or finding a compromise. (Geert Hofstede n.d.)
2.3.4 Uncertainty avoidance
Generally, cultures with high level of uncertainty avoidance have a low degree of
uncertainty tolerance that results in high anxiety and violent behavior. People from these
cultures have a strong demand for standardized rules. Countries with a low degree of
uncertainty avoidance tend to feel secure, healthy and can accept ambiguity. In addition,
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a low score indicates that people are not completely controlled by given situation. (Geert
Hofstede n.d.)
Although Chinas market opens, but government is extensively regulating all activities,
but the dimension of "losing face" in China is strongly followed. It means that people
willing to follow laws and rules due to the strong cultural tolerance of conformity. At the
workplace, this aspect manifest itself for employees needing clear guidance rather than
implementing its own decision-making. (Geert Hofstede n.d.)
2.3.5 Long-term orientation and Short-term normative orientation
This dimension describes how every culture has its connection with its own history when
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7 Appendix
Appendix A: Interview questions
The purpose of interview questions is to collect data for my academic study project. This
data will be used for our own internal analysis.
• General questions:
1. Can you introduce your background, and your connection with china?
2. When did you start your e-business in china? Can you explain your
business concept, ie. Products, brand and business mode?