Duration: 24:55
🧾 Analytical Summary
🌏 Market Presence & Scale
Rebecca Lee, Team Leader from Odoo APAC office, addresses one of the most common concerns international businesses have about operating in China: can a Belgian software company with a Hong Kong legal entity but no mainland China entity actually work effectively in this complex market? The answer comes through compelling numbers. Out of Odoo's 16 million global users announced by Fabien that morning, an impressive 2.9 million users are based in China — representing nearly 18% of the global user base and establishing China as one of Odoo's largest markets worldwide.
This remarkable adoption happens despite China being the second-largest economy globally with a uniquely dynamic digital ecosystem that processes and collects information differently than international markets. The success stems from working with an extremely strong and collective partner ecosystem specifically adapted to Chinese market requirements.
📋 Data Compliance Framework
The most frequent question Rebecca encounters concerns data compliance. China has implemented three core regulatory frameworks that govern how businesses handle data. The Cyber Security Law (2017) requires network operators to categorize security levels and implement appropriate protective measures. The Data Security Law (2021) mandates classification and grading of business data based on relevance to national security and public interest, defining categories like important data and core data. The Personal Information Protection Law (2021) serves as China's equivalent to European GDPR, regulating collection and processing of personal information to protect individual interests.
Rather than navigating hundreds of pages of legal text, businesses need to understand key operational principles. The critical concept revolves around "important data" — a classification that triggers stricter regulations and potential restrictions on cross-border data transfer. Data classification and grading determine which datasets fall under this category, and sector-specific rules apply additional requirements for telecommunications, financial institutions, and public health organizations.
🔐 Defining Important Data
The presentation clarifies what constitutes important data with concrete examples. Information relevant to national security, economic operations, social stability, public health, or safety qualifies as important data. Specific examples include undisclosed information about China's water, land, or airspace that cannot be found elsewhere, accurate geographical location data that could enable military attacks against China, or data held by major financial operators like Bank of China.
Critically, normal businesses and foreign businesses typically do not obtain such datasets. While regulations exist, they generally don't drastically affect standard business operations for international companies. This distinction is essential for understanding that compliance, while important, is not an insurmountable barrier for typical business use cases.
☁️ Flexible Hosting Options
Odoo offers multiple hosting strategies tailored to different business scenarios in China. For companies prioritizing optimum speed and performance, Odoo works with partners providing third-party cloud data centers within China. On-premise hosting remains an option for organizations requiring maximum control or specific compliance requirements.
Cross-border e-commerce businesses selling products in China and generating profits must obtain an ICP commercial license for their websites, which requires local data hosting and mandates the on-premise approach. For businesses with majority operations in China but occasional international user access, hosting databases in China poses no problems — overseas users can access mainland-hosted Odoo databases without restrictions.
Conversely, when China represents only part of usage with users scattered globally, Odoo recommends Odoo Online (SaaS) for easier setup, maintenance, superior upgrade experiences, and accessibility for Chinese users. This flexibility ensures businesses can choose compliance pathways aligned with their operational reality rather than forcing one-size-fits-all solutions.
🏢 Customer Profile & Industries
Out of 2.9 million Chinese users, approximately 50% are international companies with operations in China or Chinese companies expanding overseas — demonstrating Odoo's strength as a global platform supporting bidirectional cross-border operations. The customer base spans all industries and company sizes, from SMBs to MMC (mid-market) and enterprise organizations.
Manufacturing dominates with over 50% of Chinese customers operating in this sector, reflecting China's role as a global manufacturing hub and the sector's dominance in the national economy. A growing trend shows over 20% of customers in wholesale and retail, driven by Chinese retail groups expanding internationally and seeking platforms that support global operations both now and in the future.
User size distribution confirms Odoo's cost-effectiveness for SMBs, with the majority deploying 20 users or fewer, followed by 20-50 user deployments. Notably, the past two years have shown significant growth in MMC (mid-market) customer adoption, demonstrating upmarket movement enabled by the partner ecosystem's customization capabilities.
🌐 The "Go Out or Get Out" Movement
Post-COVID, Chinese business strategy embraced a new slogan: "Go Out or Get Out" — expand internationally or risk becoming obsolete. This shift transformed traditional unidirectional investment patterns where European countries and Southeast Asian nations like Singapore invested capital into mainland China. The new reality is two-way street investment with substantial Chinese capital expanding to Europe, Southeast Asia, Middle East, Mexico, and beyond.
Examples include Chinese solar panel manufacturers headquartered in mainland China opening European operations in countries like Germany to service and install equipment closer to customers, or establishing secondary factory lines in Southeast Asian countries like Vietnam and Indonesia for efficiency and balanced costs. This bidirectional globalization creates perfect conditions for Odoo's integrated multi-company, multi-currency, multi-language capabilities.
💼 Customer Success Stories
HPS (Hydraulic Systems) has worked with Odoo since version 13 or 14, representing one of the longest customer relationships in the region. With over 17 subsidiaries globally, they dominate hydraulic cylinder manufacturing. They leverage Odoo's multi-company, multi-currency, and multi-language capabilities across a comprehensive application suite including CRM, Sales, Manufacturing, and Inventory. Notably, Odoo's open-source architecture enabled integration with Autodesk Inventor, synchronizing product changes with 3D and 2D BOMs (Bills of Materials) for accurate, up-to-date forecasting when product specifications change.
Suez is a top 500 global company headquartered in France and a leader in water and waste management. Starting with Odoo 13, they deployed the platform across 14 factories throughout China spanning the entire geographical landscape. Beyond standardizing CRM and HR usage, they customized procurement processes and quality check workflows specific to their operational requirements.
Contage is a global leader in manufacturing interior design fabrics who opened their first Chinese factory in 2010. Before Odoo, they juggled three separate systems for WMS, ERP, and accounting, resulting in repeated work, duplicated reporting, and data isolation. Odoo consolidated all three legacy systems within 12 months and connected over 100 individual hardware devices via Odoo IoT, creating unprecedented operational visibility and efficiency.
Geprek (Indonesia) is a Chinese F&B (Food & Beverage) group that entered Indonesia two years ago and rapidly opened 40 branches across Jakarta and multiple other cities. Previously relying on local software developed by China HQ, they needed a global player fitting Indonesia's ecosystem while supporting future expansion. Odoo revolutionized their supply chain management and eliminated persistent overselling problems that plagued their multi-branch operations.
Axon (Multi-Country) represents Odoo's simultaneous deployment capability across China, Mexico, Korea, and Netherlands. Before Odoo, local offices relied on independent accounting agencies for financial reports, creating dependency, delays, and zero synchronization between global branches. Odoo enabled true global operation management from one platform with automated sales orders and unified accounting across all entities.
📈 Growth Trajectory
From 2023, China saw 35% customer growth and an impressive 95-97% billing growth. Within the APAC office, China ranks among the top five billing countries, delivering substantial value to Chinese users while continuously improving partner collaboration and product capabilities. These growth metrics validate both market fit and execution quality.
🤝 Partner Ecosystem Strength
All achievements trace back to Odoo's collaboration with a robust partner ecosystem in China. The network comprises 55 total partners who have chosen to build revenue streams and business models around Odoo, with 48 active partners working closely on implementations. These partners bring strong local expertise including solutions for Fapiao (Chinese tax invoicing) and integration with China's marketplace and e-commerce platforms.
Importantly, many partners mirror Odoo's global expansion, following customer footsteps internationally to provide continuity. This means businesses expanding from China can find the same partner expertise in new markets — ensuring local knowledge wherever operations extend. The APAC office dedicates over 10 employees exclusively to the China mainland market across sales and indirect customer success teams, providing dedicated support and market insights.
🔌 Technical Integration Highlights
Questions during Q&A revealed technical implementation details. For payment integration with WeChat Pay, Alipay, and other uniquely Chinese platforms, Odoo formed a strategic partnership with Asia Pay, which supports all major Chinese payment gateways. E-commerce platform integration and WeChat business account connectivity come through partners offering corresponding localized packages.
Accounting localization progress includes updated chart of accounts, P&L statements, and balance sheets launched two years ago. Current development focuses on connecting with China's Golden Tax system and tax authority, with a dedicated product owner in the APAC office adapting to government phase releases.
Infrastructure preferences show 36% of Chinese customers choose Odoo.sh, with the remainder split primarily between on-premise and third-party cloud hosting within China — demonstrating diverse deployment strategies matching varied compliance and performance requirements.
Fapiao (Chinese tax invoicing) formatting is supported out-of-the-box in standard Odoo versions. While standardized authentication with Chinese tax authorities isn't yet complete, solutions exist: small-volume businesses can use manual uploads, while high-volume operations leverage partner solutions connecting Odoo directly with tax authorities for automated workflows.
🧠 Viewpoint: Odoo Perspective
China demonstrates what happens when platform flexibility meets local expertise: 2.9 million users — nearly 18% of our global base — in one of the world's most complex digital ecosystems. We succeed not by forcing Western software patterns onto Chinese business, but by enabling our partner ecosystem to build truly localized solutions on our open architecture.
The "Go Out or Get Out" movement perfectly aligns with our one-platform vision. Chinese manufacturers expanding to Europe, Indonesian F&B brands, Mexican operations — they need systems that work identically everywhere while respecting local requirements. Our multi-company, multi-currency, multi-language capabilities aren't marketing features; they're operational necessities for this new bidirectional globalization. What excites me most is the 95-97% billing growth alongside customer expansion. That's not just adoption — it's customers expanding usage, adding applications, scaling with us. The diversity of hosting options proves our pragmatism: we meet businesses where they are, whether that's Odoo.sh, on-premise for ICP compliance, or third-party clouds for performance. Simplicity doesn't mean inflexibility.
⚠️ Disclaimer: AI-generated creative perspective inspired by Odoo's vision.
🏢 Viewpoint: Competitors (SAP / Microsoft / Others)
Odoo's 2.9 million Chinese users represent impressive market penetration for a foreign software platform in a notoriously challenging market. The flexible hosting strategy — SaaS, on-premise, third-party clouds — pragmatically addresses data compliance concerns that often stall international ERP deployments in China. The partner-centric model wisely offloads localization complexity to experts with deep market knowledge.
However, several considerations warrant scrutiny. The absence of mainland China legal entity, while claimed as operational, creates potential long-term risk as regulatory enforcement intensifies. The accounting localization remains incomplete — Golden Tax system integration is "in progress," meaning businesses still face integration gaps for core compliance requirements like Fapiao authentication. The reliance on 48 active partners for localized solutions creates version upgrade risks and technical debt that standard products avoid. While the customer success stories are compelling, the concentration in manufacturing (50%+) suggests limited penetration in financial services, healthcare, or heavily regulated sectors where compliance depth matters most. The 36% Odoo.sh adoption among Chinese customers is notably lower than global averages, suggesting performance or compliance concerns that push clients toward on-premise or regional cloud alternatives. For enterprises requiring guaranteed compliance, deep accounting integration, and regulatory certainty in China's evolving legal landscape, established players with mainland entities and complete localization may still offer less operational risk despite higher costs.
⚠️ Disclaimer: AI-generated fictional commentary. Not an official corporate statement.
Disclaimer: This article contains AI-generated summaries and fictionalized commentaries for illustrative purposes. Viewpoints labeled as "Odoo Perspective" or "Competitors" are simulated and do not represent any real statements or positions. All product names and trademarks belong to their respective owners.