Cross-Border Business Strategies for Success

On 19 March 2025, IAB HK hosted a pivotal panel discussion titled “Mastering Cross-Border Business: Leveraging Technology for Global Success” as the breakout session at HKTDC’s MarketingPulse and eTailingPulse. The objective of this discussion was to explore the strategies and techniques used by industry leaders to achieve international business expansion through the use of cutting-edge technology and effective localization.

(Photo from left to right) Moderated by Mr. Kevin Huang (COO, IAB HK Exco & South China Morning Post), the panel featured insightful contributions from Ms. Jess Cheng (Co-Founder & CEO, CHARGESPOT), Mr. Philip Chan (Head of eCommerce, Shun Hing Global Online Business Co., Ltd), and Ms. Tina Zhao (Marketing Director, Global Business Solutions, Xiaohongshu). The speakers shared their expertise and offered practical tips for businesses aiming to penetrate the mainland China market and beyond.

Customer-Centric Product Development

In today's rapidly evolving global market, one of the key strategies for success is placing the customer at the center of product development. This approach involves continuously iterating on products to address real-world user friction and foster greater adoption. A prime example of this principle in action is the Shun Hing Group and their innovative solution for the glass lid for water drops. Shun Hing recognized a common inconvenience for their customers and developed a glass lid to provide a better experience for their customers. This simple yet effective solution not only resolved a significant inconvenience for users but also demonstrated the company's commitment to understanding and addressing their customers' needs. By focusing on solving real-world problems, Shun Hing was able to drive product adoption and build a loyal customer base.

(Photo: Mr. Philip Chan, Head of eCommerce, Shun Hing Global Online Business Co., Ltd)

Product iteration is essential for staying relevant in today's competitive market. Companies must continuously seek feedback from their users and be willing to make improvements based on that feedback. This iterative process ensures that products remain aligned with customer needs and expectations, ultimately leading to increased satisfaction and loyalty. Shun Hing's iterative approach in developing their glass lid showcases their dedication to refining their product to meet user demands. By conducting thorough research and gathering customer feedback, they were able to identify the specific requirements and preferences of their target audience. This customer-centric approach not only enhances the overall user experience but also contributes to the company's long-term success.

Build Trust Through Excellence

Trust is a fundamental component of any successful business relationship. Companies can build trust through operational excellence and authentic storytelling. CHARGESPOT's 24/7 support and Xiaohongshu's platform strategies are prime examples of how businesses can win global trust.

Operational excellence involves consistently delivering high-quality products and services that meet or exceed customer expectations. CHARGESPOT's commitment to providing 24/7 support ensures that customers can always rely on their services, fostering trust and confidence in the brand. This level of reliability is essential for building long-term relationships with customers and establishing a positive reputation in the market.

Authentic storytelling is another powerful tool for building trust. Xiaohongshu's platform strategies leverage genuine user-generated content to showcase real experiences and testimonials. By sharing authentic stories, Xiaohongshu creates a sense of community and trust among its users. This approach not only enhances the brand's credibility but also encourages word-of-mouth referrals and organic growth. Xiaohongshu employs a strategic seeding approach, where they collaborate with key opinion leaders (KOLs) and influencers to share their experiences and reviews of products on the platform. This seeding strategy helps to create authentic content that resonates with users, providing them with reliable information and recommendations. By carefully selecting influencers who align with their brand values, Xiaohongshu ensures that the content remains genuine and impactful. This method not only boosts user engagement but also helps to build a loyal community that trusts the platform's recommendations.

Furthermore, Xiaohongshu has expanded its functionality to include e-commerce features, allowing users to shop directly through the app. This integration of social media and e-commerce creates a seamless shopping experience, where users can discover, review, and purchase products all in one place. Xiaohongshu's innovative approach to blending content and commerce has revolutionized the way users interact with brands and shop online, further solidifying trust and loyalty within their community.
 

(Photo: Ms. Tina Zhao, Marketing Director, Global Business Solutions, Xiaohongshu)

Know Your Target Audience & Market Culture

Understanding the target audience and the cultural nuances of the market is crucial for business success. CHARGESPOT's decision to place chargers in Japan's convenience stores rather than restaurants exemplifies this approach. In Japan, it is considered impolite to interrupt diners, and placing chargers in restaurants could have deterred potential users. By recognizing this cultural norm and choosing a more appropriate location, CHARGESPOT was able to build loyalty and drive business success.

Knowing the target audience involves more than just demographic information; it requires a deep understanding of their preferences, behaviors, and cultural context. This knowledge allows companies to tailor their products and services to meet the specific needs of their customers. For instance, CHARGESPOT's chargers in convenience stores cater to the Japanese preference for unobtrusive and convenient solutions, enhancing the user experience and fostering brand loyalty.

Additionally, CHARGESPOT has taken into account the specific needs of regions prone to earthquakes. Their charging stations in Japan are designed with reinforced structures to withstand seismic activity, ensuring that they remain operational in the event of an earthquake. This thoughtful design not only protects the infrastructure but also provides a reliable service for users during emergencies, further building trust and reliability in the brand.

Market culture also plays a significant role in shaping business strategies. Companies must be aware of local customs, traditions, and social norms to effectively engage with their target audience. By respecting and adapting to these cultural differences, businesses can build trust and establish a strong presence in new markets. CHARGESPOT's approach in Japan highlights the importance of considering cultural nuances when developing and implementing business strategies. By acknowledging and addressing these cultural factors, companies can create products and services that resonate with their target audience, ultimately driving business success.

(Photo: Ms. Jess Cheng, Co-Founder & CEO CHARGESPOT)

Diversify Distribution Channels

Diversifying distribution channels is essential for reaching a broader audience and strengthening customer relationships. Shun Hing's WhatsApp warranty service is an excellent example of direct client engagement that builds first-party data and fosters relationships beyond third-party platforms. By offering a warranty service through WhatsApp, Shun Hing provides a convenient and personalized way for customers to engage with the brand. This direct interaction allows the company to collect valuable first-party data, which can be used to gain insights into customer preferences and improve products and services. Additionally, direct engagement strengthens the relationship between the company and its customers, fostering loyalty and trust.

Diversifying distribution channels also helps businesses mitigate risks associated with relying on third-party platforms. By establishing multiple touchpoints with customers, companies can ensure a consistent and seamless experience across different channels. This approach not only enhances customer satisfaction but also increases the brand's resilience in the face of changing market conditions. Shun Hing's WhatsApp warranty service demonstrates how businesses can leverage technology to create meaningful connections with their customers. By embracing innovative distribution channels, companies can stay ahead of the competition and continue to deliver exceptional products and services.

Conclusion

In conclusion, achieving global business success requires a customer-centric approach, understanding the target audience and market culture, building trust through operational excellence and authentic storytelling, and diversifying distribution channels. By adopting these strategies, companies can effectively navigate global market complexities, drive sustainable growth, and position themselves for long-term success in an interconnected world.

(Photo: Moderator, speakers and IAB HK Committees)

Author

Jeffrey Tse

Senior Manager, Digital Product and Solution, Uni-China Group

IAB HK Commerce Committee (2025)

Article launched on 7/4/2025

APPENDIX

The IAB (Hong Kong) Commerce Committee
The Commerce Committee is focused on aggregating the market players to showcase the best practices and latest technology in retailing, enabling members to seize the opportunity for growth from Digital Commerce. 

Please address any questions or comments about this article to 
Secretariat Office of IAB Hong Kong - info@iabhongkong.com