Foreign Investment in China

Should we Enter How should we How could we

the Chinese enter the ensure a
market? market? successful entry?

Market Market
Entry Marketing
Assessmen
Options Strategy
t
Product Promotion

marketing management

Price Place
Why Foreign Firms Have Failed in China
• Poor understanding of the business environment
• Lack of a deep (enough) understanding of the Chinese
market
• Poor management of relations with Chinese regulators and
the government
• Ineffective strategy making and communication and
underperformance in operation and execution
• Ill-fated attempts to impose global business models unsuited
to the Chinese market
• Failure to cope with the extremely fierce competition in
China
• Failure to manage relations effectively with local business
partners
• overly centralized organizational structure’s leading to slow
decision making
•Quality •Sales Promotion
•Branding •Advertising
•Packaging •Public Relations
•Service

Product Promotion

Price Place

•Price Strategy •Channel

•Discounts •Logistics
•Distibution
Product

Product Product
standardization? localization?

Combination
product strategy
Product
Promotion

• Digital Advertising
Promotion

• KOL
Promotion

• KOC
Promotion

• Mobile Platforms
Promotion

• Major platforms
• Digital Commerce: Taobao, Tmall, JD, Pinduoduo
• Payments: Alipay, WeChat Pay, Baidu Wallet
• Social Media: Wechat, QQ, Weibo
• Video Streaming: Bilibili, Douyin
• Search: Baidu
Promotion

• How to deal with behavior of Chinese consumers

• How to make use of Chinese culture
• The importance of public relations
• Don’t simply follow a Western model for PR strategy. Organizational
structure and employee function should reflect local conditions.
• The stakeholder environment in China is too complex and the rise of Internet
use and social media guarantees challenges will spin out of control.
Price
Indiscriminate Discriminate
pricing pricing

Strategic pricing
Place
(Image source: Hi-Com)
 Place

Discover the evolution of e-commerce:

Key Takeaway Points
• Demand
• Access to the Market
• Advantage
• Commitment
• Governance
• Strategy:
• how different are the customer needs in China?
• how much cost and effort will localization require?
References
References

• China Market Entry Strategies, Published on Nov 5, 2013 Published in: Business, Economy & Finance

• Foreign Direct Investment in China https://www.nordeatrade.com/dk/explore-new-market/china/investment

• How to Start a Business in China’s E-commerce

https://www.fdichina.com/blog/china-company-registration/how-to-start-a-business-in-china-e-commerce/

• Types of Business Entities in China

https://en.chinacache.com/chinese-business-entities

• Joint Ventures in China: How to Make your Partnership Successful?

https://www.sjgrand.cn/joint-ventures-china-how-make-your- partnership-successful/
References
• https://successfulglobalmarketing.weebly.com/untitled/global-marketing-strategy-
standardization-vs-adaptation
• Latest digital marketing trends by Red Digital Lab.
https://www.reddigitalchina.com/blog/from-kol-to-koc/