Published by:
Harvard Business Publishing
Length: 7 pages
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Abstract
With one-quarter of the world''s population, and consumer spending increasing by as much as 10% annually, China offers an opportunity that marketers of branded goods can''t ignore. Foreign companies seeking to win a piece of this growing market must overcome nagging uncertainties about the country''s stability. They must also understand guo qing ("Chinese characteristics" or "the special situation in China") in order to deliver a product with the value, quality, and convenience that will appeal to Chinese consumers. Given the fragmentation of most Chinese consumer markets, Western marketers should concentrate on 3 to 5 key cities and then build sales, distribution, and manufacturing capabilities over a wider area. Multinationals already operating in China should try to cover 15 to 20 key cities by the end of this century. The challenge for both new entrants and seasoned marketers is to continue adapting products and marketing practices to guo qing.
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Abstract
With one-quarter of the world''s population, and consumer spending increasing by as much as 10% annually, China offers an opportunity that marketers of branded goods can''t ignore. Foreign companies seeking to win a piece of this growing market must overcome nagging uncertainties about the country''s stability. They must also understand guo qing ("Chinese characteristics" or "the special situation in China") in order to deliver a product with the value, quality, and convenience that will appeal to Chinese consumers. Given the fragmentation of most Chinese consumer markets, Western marketers should concentrate on 3 to 5 key cities and then build sales, distribution, and manufacturing capabilities over a wider area. Multinationals already operating in China should try to cover 15 to 20 key cities by the end of this century. The challenge for both new entrants and seasoned marketers is to continue adapting products and marketing practices to guo qing.