SmithStreet's CEO on Jyllands-Posten
Copenhagen, Jan.21, 2012
Franklin Yao, CEO of SmithStreet, shared his insights into the challenges foreign brands might face when entering the vast and highly diverse China market in an exclusive interview for Jyllands Posten, Denmark's largest daily newspaper.
The article discusses China's unique characteristics as a country in which people's customs, dialects and consumption patterns vary greatly from region to region. "People in eastern China are nothing like the people in western China", said Mr. Yao. Furthermore, as the wealth and purchasing power of Chinese consumers continue to rise, China is increasingly becoming the "world's shop," rather than the world's factory. He asserted that many foreign brands still fall behind when it comes to truly having an up-to-date understanding of China's market during this critical transition period. "To produce in China is not the same as selling products in China," said Mr. Yao. "Take beer sales as an example. Unlike Europeans and Americans who are accustomed to going to a bar to consume beer, Chinese consumers would rather enjoy beer in restaurants and karaoke bars." He maintained that such disparities between Chinese and Western customs were common and should be studied and understood before a successful China strategy could be developed.
Mr. Yao gave a few other examples from his experience working with different international clients on their China strategies. At the end of the interview, Mr. Yao advised that foreign companies should spend at least half to a whole year preparing properly before entering China rather than wasting valuable time fixing problems after they arise.
About SmithStreetSmithStreet is a China-based consulting and financial advisory firm with offices in Shanghai and New York. By bringing global best practices to China and unlocking China's value, it provides clients with the knowledge and insights they need to make sound business decisions. Since its founding in 2007, it has provided its clients with strategic consulting, market research, due diligence, and financial advisory solutions across a wide range of industries.
For more information about SmithStreet, please visit the company website at http://www.smithstreetsolutions.com
About Jyllands Posten
Founded in 1871, Jyllands-Posten or JP, is a Danish daily broadsheet newspaper with a weekday circulation of approximately 120,000 copies, it is among the largest-selling newspaper in Denmark.
For more information about Jyllands-Posten, please visit the website (Danish) at http://jp.dk/