Marketing in China

1
Marketing in China

• Presentation Outline
• General Market information
• Cultural aspect --Quo Qing

2
Chinese Market

• Large population (1.2 billion)
• Third largest economy (after purchasing power
  adjustment)
• Can spend 80 of their income
• consumer spending grows by 10 per year in urban
  households and 8 in agricultural households.

3

• Rejoice shampoo (20 RMB --25 of average weekly
  income), few alternatives
• Less prospectus time--4 status symbol
• bicycle, watch, sewing machine, and radio
• Now six da jian (six big things)
• VCR, TV, washing machine, cameras, refrigerator,
  and electric fan.
• Tendency to big more luxurious items in big cities

4
Guo Qing

• Means national characteristics or countrys
  special circumstances
• Deng Xiaoping issued a directive in 1994
• western cultures and ideas should be adopted
  only if they fit guo qing. Good ideas applicable
  in China should be promoted corrupted and
  inapplicable ideas should be discarded.

5
Consumer Behaviors

• General Rule
• Never make a purchase until you have compared
  three shops
• Beijing Lufthansa Shopping center --daily
  visitors of 120,000
• Superstitious and Name recognition
• Examples
• Manufacturer of a kitchen-equipment tries
  different names Red Star, Treasure, Prosperity-
  BOSS

6

• Coca-Cola
• In 1920s, sounded like kou-ke-kou-la (means
  a thirsty mouth and a mouth of candle wax)
• Now ke-kou-ke-le meaning a joyful taste and
  happiness
• Revlon
• lu-hau-nong meaning the fragrance of the
  flowers with morning dew -- related to a poem in
  Tang dynasty (best known for its poem).
• Pizza Hut
• sure win guest

7
Strategies for Marketers

• Simple, direct approach works best
• direct communication imperatives for product are
  What is it, What is it called? What can it do?
  Where can a consumer find it? How much it cost?
• Curiosity factor