Growth Strategies

Today's companies face the economic crisis, global recession, and saturated domestic markets. As a result, many US companies are seeking new markets in China. The Chinese economy is expected to grow and domestic consumption is supported by the government, offering excellent and enduring sales opportunities. Today companies do not go to China for low-priced sourcing or cheap production. The main reasons are to sell and to expand.

The challenge is to develop the Chinese market and to grow profitably. Many market segments at China's East coast are already saturated.

Successful Western companies do their homework when approaching the Chinese market including:

• Well-founded knowledge about the Chinese hinterland under development, especially the 2nd and 3rd tier cities.
• Information about Chinese customer and consumer groups, their buying behavior, and demand-pattern.
• Knowledge about effective and efficient sales channels to penetrate the Chinese market, for example, franchising, e-commerce, and outlets or chain stores.
• Information about opportunities to develop and penetrate the broader Asian market from within China.