Validating China Entry Before Local Investment

A Japanese RPA vendor tested Chinese demand before establishing a local entity and sales team. The findings redirected its entry strategy towards partnerships, licensing and distribution, allowing it to explore the market with a lower initial commitment.

Published 21 September 2026 · Client identity withheld

The Challenge

A Japanese RPA software vendor faced uncertainty about Chinese demand, compliance requirements, local competition and enterprise buying cycles. Establishing a subsidiary and direct sales team would create substantial fixed costs. Committing too early to a partner or licensing arrangement could also limit commercial control.

Our Approach

Before the client established a Chinese entity, we connected it with decision-makers at prospective customers. Product concept tests and commercial feedback helped assess demand, purchasing potential and entry barriers. We then compared direct sales, technology licensing and strategic partnerships in terms of risk, resource requirements and feasibility.

The Outcome

The client moved away from establishing a substantial local organisation at the outset and towards exploring partnerships, technology licensing and channel distribution. The work provided a basis for testing the market with a lower initial commitment while preserving flexibility over future investment.