Virtual data rooms are highly secure online repositories for the seamless storage and exchange of documents between third parties. Typically, VDRs have spread around the world because of their excellent ability to support M&A deals, but in the market, in China, the programs have become popular for another reason. There, data rooms were originally used for IPOs, and only recently have they been used for mergers and acquisitions. In this article, we’ll take a closer look at VDRs in China.
New Concept in China
Even in today’s world, there are still more conservative businesses that prefer to do business the old way. China has more such enterprises than other developed countries. Despite all the risks, companies still exchange documents via e-mail, USB storage, FTP, or even use physical data storage. But, as is expected in such cases, security threats have become frequent visitors to such organizations. Such methods of storing and sharing documents do not guarantee digital security, and China’s entrepreneurs have slowly begun to realize this, and value cybersecurity and information privacy more.
This has led to more frequent use of data encryption and password protection. Virtual data rooms have become an innovative tool in the Chinese market, a concept mainly represented by the interaction of the stock market with listed global companies. But the use of VDRs has not been limited to just conducting IPOs, data rooms now perform some other functions.
As demand for VDRs in the Chinese market has skyrocketed, many data room providers have decided to expand their services from their small team locations in the capital city, Hong Kong. But at the same time, many have also neglected the enormous potential of deploying their services exactly in China, the location of their core business. Those developers who have decided to develop their services toward China have realized that their collaboration with the local market gives them unique knowledge, experience, and revenue.
The Importance of Local Presence
Needless to say, China is a huge market, it is also unique and very different from businesses in other parts of the world, even with the fact that the global market is now becoming increasingly global. Chinese professionals do business differently, but it usually only applies to medium and small businesses. If you, as a virtual data room provider from https://virtual-dataroom.it/ from another country, want to curb the Chinese market, you need to become “local.” In other words, local presence plays a very big role here:
- Make your service available for the local market -You must make sure that your data room supports the Chinese language, this is an obvious but necessary quality. If your platform originally didn’t support Chinese, and you start working on translating your site into that language, make sure you have professionals working on it, and not just in the translation business, but in the corporate market as well
- Duty helpdesk – you need to have people who speak Chinese well in your space as well, ideally, they should be native Chinese. Otherwise, what’s the point of providing your services if your customers can’t understand their problem because of the language barrier
- You have to understand how processes work in China – get used to the idea that everything is different in China, the way of managing people and documents is also different from Europe
- Selecting the right name – indeed, in China a lot depends on the name of the company. It is important to pick the right and successful name so that customers want to cooperate with you, and employees were motivated to work well