Marketing in China
Fig. 1: Crowded shopping street in Hongkong's business district (Kowloon, Mong Kok district)
Sourcing from China ), it is now also on the way to become the marketplace of the world ( Marketing Facts about China). China has entered the transition from a planned economy into a market economy where customer satisfaction, market share and profitability are the driving forces.
Two arguments most often used by foreign enterprises who are about to enter the Chinese market are China's astounding economic growth and the sheer size of its market. While the average disposal income has been growing by double digit figures over most of the past 30 years, it is also home to currently (2009) 250 million people that belong to China's rapidly growing middle class and able to afford many of the same products as consumers in Western economies (As of 2010, 40 million households earn more than 48,000 renminbi ($7,000) per year, equivalent to $28,000 in terms of purchasing-power parity and enough to qualify a household as middle class by western standards).
On top of that China has a vibrant and also rapidly growing upper class ( Marketing Luxury Products in China) and a youth market ( Intermarket Segmentation in China), the prime target most foreign consumer goods companies.
But apart from all these promising factors and similarities that would justify a market entry, there are also many pitfalls in this rapidly changing and extremely diverse marketplace that this course/website wants to point out. Welcome to the China marketing jungle !
Fig. 1: Crowded shopping street in Hongkong's business district (Kowloon, Mong Kok district)
Welcome to the jungle
While China can still be considered the factory of the world ( Sourcing from China ), it is now also on the way to become the marketplace of the world ( Marketing Facts about China). China has entered the transition from a planned economy into a market economy where customer satisfaction, market share and profitability are the driving forces.Two arguments most often used by foreign enterprises who are about to enter the Chinese market are China's astounding economic growth and the sheer size of its market. While the average disposal income has been growing by double digit figures over most of the past 30 years, it is also home to currently (2009) 250 million people that belong to China's rapidly growing middle class and able to afford many of the same products as consumers in Western economies (As of 2010, 40 million households earn more than 48,000 renminbi ($7,000) per year, equivalent to $28,000 in terms of purchasing-power parity and enough to qualify a household as middle class by western standards).
On top of that China has a vibrant and also rapidly growing upper class (
Marketing Luxury Products in China) and a youth market ( Intermarket Segmentation in China), the prime target most foreign consumer goods companies.But apart from all these promising factors and similarities that would justify a market entry, there are also many pitfalls in this rapidly changing and extremely diverse marketplace that this course/website wants to point out. Welcome to the China marketing jungle !
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