Overseas Marketers’ Real Problem In The Chinese Consumer Market
The article from Forbes discussed about the barriers for foreign companies occupy the Chinese market. Undeniably, China’s customer market has been a popular cake among overseas companies within extraordinarily increasing economic development of China. However it isn’t easy to win the minds of Chinese customs. The article gives several reasons. First, even though China has large customer base, customers are more capricious, diverse. Second, they face furious competition from local companies.
As a Chinese, I agree with it. Labor and raw material cost are cheaper in China than that of western countries because of exchange rate and other factors. Products of local companies are much cheaper compare to famous global marketers. Even though the quantity and design of local products are not as good as that of global companies, they are still acceptable. For Chinese customers who become richer in recent years, price is still the first consideration. In China, people like try new things but the enthusiasm will fade away as time went on. For example, KFC which was pretty popular when they first enter Chinese market, people had to wait for more than 30 mins in line for meals. But only few years later, KFC are not as poplar as before. They have to launch new products and use promotions to attract customers. In remote areas, overseas companies can not approach since their high price and customers local tastes.
In order to get higher market share in China, overseas companies have to modified their products to cater the taste of Chinese. If they can’t get advantage of price, companies’ target customer will be narrow.