China market penetration

However, after more than a decade of massive investments in acquiring local businesses, the reality seems to be more difficult than anticipated. After the first easy phase of restructuration and consolidation, a great number of companies in all sectors find themselves in a difficult situation in relation to where the growth in profitability and necessary margin increases are going to come from. It is in this context that we have been called to help a world leading beer company that was struggling to find the right model for growth in China. Massive opportunities reside in China through the development of optimum route-to-market. Efficiencies can result in more than doubling of commercial margins, while greatly improving channel penetration, brand positioning, points of sale control and customer relationships.

Becoming dominant in its saturated industry while optimizing its market positioning, generate margin profit on a highly competitive environment and still upscale sales volume, upgrade brand equity without impacting the reach of consumer segments; pricing management in China can imply various complex and strategic business questions. Among all the aspects, pricing plays a vital role for the success of a company. How ticket revenue of London Olympic Games exceeds that of the preceding three Olympic Games Beijing, Athens, and Sydney combined is a spectacular example illustrating the powerful role a sophisticated pricing strategy can play. Paul Williamson, who was responsible for managing the ticket program in London Olympic Games, used prices not only as an effective revenue and profit driver but in addition as a powerful communications tool. The digits of the prices themselves were designed to send a message without any additional commentary. The pricing strategy in the London Olympic Games shows that a good pricing should have three prerequisites: create value, quantify value, and communicate value.

Among them, the production and sales volume of new energy vehicles in December, , were , and , respectively, each up 1. In the last month of , the penetration rate of new energy vehicles reached According to previous statistics published by CAAM, the production and sales of automobiles in China in were Among them, the production and sales volume in December were 2. In terms of passenger cars, the annual production and sales volume were

The question of how to market and sell to companies based in China is one that is debated endlessly by foreign companies seeking to profit from the huge potential of the country. As Chinese companies have developed over the past decade, they have rapidly become more sophisticated in their business systems and practices, creating both opportunities and challenges for Western businesses. Although ongoing East-West cultural differences continue to pose challenges to foreign enterprises carrying out marketing in China, companies that make an effort to understand such variations and integrate them into their marketing strategies stand a greater chance of succeeding in the China market. This paper is based on past surveys of Chinese business opinion in the two key cities of Beijing and Shanghai, comprising in-depth interviews with business owners and senior purchasers.