The Chinese Glove Problem refers to the mistake of confusing a market's total theoretical demand with its actual addressable market. The total theoretical demand is the sum total of all professed demand, while the available market represents who is there for the taking, considering factors like location, language, culture, etc. The target market is who you decide to go after, and the demand by your target market in a particular period defines the market demand. Understanding which market matters to you is crucial when opening a coffee shop or starting an online business. The addressable market for start-ups is best defined by the mindshare you can reach, considering communities like Stack Overflow, Hacker News, or Dribbble. Acquiring customers through Google ads and searches targets transient strangers who may not stick around, while focusing on current audience and providing a remarkable customer experience is key to scaling.