- It is very difficult to “crack” the Chinese market. Even foreign companies that have been there for a long time struggle being profitable on Chinese sales.
- Marketing in China has to have geographical focus, and there are different strategies for different parts of the country.
- “ the biggest entry barrier is to understand local sales necessities, how they behave what they expect with the product”. - Gerald Kaufmann (pg 152)
- China is no longer requiring foreign companies to use an uncoordinated network of domestic wholesalers; although some may use existing relationships and ties if they worked well previously.
- Some
businesses may consider using international or Hong Kong based
logistics businesses to move goods around and in and out of the country.
- If a company decided to “go it alone”, it may be expensive and time consuming, but it gives the company better control over distribution.
- If a company is restricted to a smaller number of locations, it may be easier for a company to do it alone.
- Companies may need to rethink their distribution channels because of the rate of change in the Chinese market.
- Fast paced consumer- goods sector, the spread of hyper markets and chain store operations throughout China offers foreign manufactures new distribution channels and test-marketing platforms for their goods.
Our Proposed Marketing Plan:
- Our Plan to enter the Chinese market will initially remain with what we know how to do right now. We are going to export our individually sized bottle that is currently in production. Our labeling is already consistent with the "harmony" and "nature" desiring culture of China. One aspect of our market entry plan is attempting to partner with Yum Brands to sell our product in their restaurants which already appeal to consumers who seek out Western products. Additionally, we would like to distribute our product through chain store grocery markets that are just beginning to develop in the larger cities.
Sources:
The Globe: Is it too late to enter China?
Understanding China's Political System
Political and Legal Factors
Distribution in China
Story, Jonathan. China Uncovered: What you need to know to do business in China. Pearson Education Limited, 2010. Print.
http://www.casaasia.es
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