China Entry & Expansion Strategy
It is no secret that for companies wanting to expand operations, China is one of the world's top destinations. Typically, this has meant opening a factory for export but over the last decade, China as a market is the real story. While the government's efforts to stimulate domestic demand have not yet shown the desired results, due to overall GDP growth, domestic consumption is a significant force that has only one way to go, up (as a % of GDP consumption represents ~32% of GDP, perhaps a world record low). Over the last three decades, China's GDP growth has been hovering at an impressive rate of 10%. We help international companies evaluate China and guide them through optimal entry options through in-depth analysis of past, current and future market conditions. We can help you answer questions such as:
- What are your core competencies in terms of product portfolio, markets, R&D capabilities, etc., and how do they translate into the China market?
- Which entry strategy would work best for your type of business? Should you enter via a licensing, WFOE, franchising or JV?
- What products in your company's global portfolio best fit the China market?
- If already in China, what geographies/demographics/market segments are the next logical step for the business?
- How can you compete with local companies?
- If a partnership is the right way, who? When? How?
“We completely changed our original entry strategy in order to cater to China’s unique shopping culture – their spending habits and understanding of our product line proved to be completely different than how it is viewed in Western countries.”
-A Leading Retail Chain Conglomerate