Tradeshift shifts to tap Chinese market

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Tradeshift shifts to tap Chinese market

(People's Daily Online) 17:04, August 29, 2013

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Christian Lanng is busy with expanding the size of Chinese users on Tradeshift from currently several thousands to more than 100,000 in the next 12 months by building up a localization version in China.

In his third trip in China for figuring out the best way to begin, Lanng, CEO and co-founder of Tradeshift, received an exclusive interview from People’s Daily Online today, elaborating on the next steps of his business in China.

Launched in 2010, Tradeshift started with offering free electronic purchasing and invoicing services to small companies. Lanng said Tradeshift is not only a platform for transaction but also for users to build the relations with their suppliers and consumers.

“So in a way you can say that Tradeshift is the social network for business, not just financial network for business,” said Lanng.

Tradeshift works for large companies all over the world to help them manage their supply chain, and these large companies have many suppliers in China because China is such a big global exporter.

“They ask us if we can help them connect their suppliers in China for them outside China. I think that’s going to be our first focus and over the next 12 months we will be inviting more than 100,000 Chinese suppliers to join and do businesses with these large customers,” said Lanng.

During the previous trips, Lang observed that in China business is so much based on relationship.

“Many new business connections, new introductions are based on trust, based on who you know. The way Tradeshift, the way we build and design Tradeshift is very good with this because it also builds on real world relationship, not just online,” he said.

Tradeshift is on a prudent way to step into Chinese market. Lanng and his team have looked at a lot of previous companies.

“One thing that was clear was that before you do anything, you absolutely need to understand the culture and the needs of the Chinese people around and trying to come from the outside with your own models,” Lanng concluded.

Some foreign companies tumbled when pushing their ambitious plan in China. Lanng said a win-win solution may help Tradeshift avoid failure in China.

“I think some American companies they have tumbled because they have such a big home market and they build so much successful products in the U.S. and they always take products to China. I think to be really successful is not enough that your company grows but hopefully many Chinese companies will grow with us and that’s always our success criteria,” explained Lanng.