In China, entrepreneurship has only been legal for 35 years. While red tape and legal obstacles for new businesses still exist, the Internet has opened up a wealth of opportunities for individuals, particularly women, to become ‘appreneurs,’ running successful businesses from home.
App-based microbusinesses, known as weishang (微商) are one of China’s fastest growing forms of e-commerce. WeChat, a texting app that hosts many of these businesses and allows electronic money transfers is ubiquitous in China; there are over 550 million active WeChat users around the country. Weibo, a microblogging site, and Taobao, China’s answer to Amazon and eBay, also allow small business owners to sell their goods through the apps. The goods can be picked up in person or delivered via courier.
Little Qing, an expert coffee roaster, initially sold her roasted beans to her network of friends on Weibo and built a trusted clientele through word of mouth. “It started with just friends, although I didn’t want them to feel pressured to buy anything. I wanted them to want to buy my coffee and then enjoy drinking it, otherwise it wouldn’t become a sustainable model.”
China is still very much a tea culture, so Little Qing first had to introduce many of her friends and relatives to coffee basics: how to brew it (no need for an elaborate steeping process; a drip machine will work) and drink it (sugar is optional; try it black first), helping them find their favorite taste. “Now my friends introduce other friends to my coffee. They may not have been coffee drinkers before but they like the concept of it and brought their friends to sample my coffee, discovering they actually liked the taste.”
Jasmine, another food appreneur, first started baking for family and friends. “Chinese bakeries generally only sell sugar-laden white bread, and I wanted to be able to provide my daughter with something healthier.” Jasmine, who’s self taught, only uses locally sourced ingredients from trusted vendors and imported French or German flour.
China’s numerous food scandals in recent years and growing rates of obesity and diabetes have made consumers more health conscious, which has also attracted customers. “I know it’s not cheap, but this bread is made from the best ingredients and people appreciate that. Gradually people’s preferences change.”
For the first time since China’s opening up, the middle class is enjoying the convergence of a disposable income, increased travel ability and an internet-savvy society. Together, these factors have made it possible for women entrepreneurs to pursue interests beyond what was once imaginable, introducing new flavors and tastes to consumers in the process.
In 2014, Premier Li Keqiang announced promoting entrepreneurship was a long-term goal for the government, but until recently microbusinesses were in a legal grey zone. They are currently exempt from charging sales tax and VAT through 2017, but beyond that, the government has adopted a surprisingly lax ‘wait-and-see’ approach to regulating this part of the market.
But while the government looks on, customers are already queuing up; Jasmine’s bread normally sells out before it’s even risen, and Little Qing’s coffee beans before they’ve even been roasted.