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As China opens its market, most operators want to get their share.
Competition is always fierce, an initial error in the strategy can be very costly.
Many know that a business model copied from their original markets might not be the best option. Local environment, such as regulations, customer’s habits, language and culture, local competition, business practices must be taken into consideration. But exactly how and to which extent the offer must be adapted to the China market is not an easy question :
- Too little flexibility and the offer does not match well the market, the operators perceive the
brand as unable to understand the Chinese specificities,
- Too much freedom, the synergy of operation with other markets is lost and the Chinese
market becomes too far apart from the core values of the brand.
Human factors are also essential. In any case, the strategy will require that a significant number of local Chinese parties adhere to it and contribute to its success (customers, distributors, employees, …). A brilliant strategy will not succeed if not supported by the key people and partners on the field.
China offers specific opportunities such as low cost manpower or sourcing. This can open ways to operation modes which would not be cost effective in other countries. The project must be tailored with the local Chinese perspective in mind.
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