(2014) China - Country Analysis, Individual Assignment in International Marketing / MBA, 2014

CHINA – COUNTRY ANALYSISDr. Raimond SelkeInternational Marketing GSM 5280

Dr. Raimond Selke, 7 June 2014

Introduction

Overall Impression (my experience in China 2006-2014)

International Marketing Environment -- Social -- Environmental -- Ethical -- Political Marketing Intelligence Q & A


http://www.youtube.com/watch?v=KNXg-kYk-LU#t=10

https://www.youtube.com/watch?v=se347ddqNEI


http://www.youtube.com/watch?v=SExDPEi8ogM


Millions in China are getting rich and they look likely to get richer…


By 2015 China will account for over 20% of the worlds luxury goods demand (Global Marketing Strategies have t obe developed accordingly)


Many Western brands making use of the opportunities of the rich in China…


But the vast middle class represents the real big opportunity for marketing and commerce


Opportunities for business related to ageing population


Demographic data 2010 and 2025


Implications of an ageing population for marketers


Changing population with effects on workforce


Environmental issues.. Over 1m Chinese die annual due to issues related


Trade off: Economic Growth versus pollution


http://www.youtube.com/watch?v=k1JGGjAm42c

Social and economic ost of pollution is significantly high


Today world largest investor in solar and renewable energy projects (to overcome environmental issues)


Massive investments and opportunities for marketers in wind and solar…

http://www.theguardian.com/environment/video/2012/mar/20/china-wind-farms-renewable-energy-video

Issue: China is protecting the solar energy market, hence, these products exported to Western countries and the US have heavy tax burden (penalty tax)


Product safety and health are an increasing issue


China – known as the “factory of the world”


Western brands producing in China under scrutiny


Risk and Threat for brand damage, ex: NIKE


Example 2, Apple and its main supplier Foxconn


Key implications for business outside China


Corruption in English means not the same China,“Guanxi” - play


Corruption issue widespread in local and foreign media


The Chinese Healthcare system as an example of corruption


Healthcare issues and corruption can have devastating impact on foreign multinationals, ex: GlaxoSmithKline


There is a saying now: It is not so difficult to enter the Chinese Market. However, making money with a steady cash flow is the pivotal difficult task!


Issue: Protectionism is a potential issue for every foreign investor in China.


China ranks 70th in the world for ease and cost of trading across its borders


Europe and Germany in particular (Germany is the World’s leading export nation before China) have special concern over protectionism in China:


Dumping as a method of protectionism


Overall, external environment seems to be more threatening businesses outside China wanting to do business inside China


Emerging Markets expected share


Q & A

…yes please!


Dr. Raimond SelkeInternational Marketing GSM 5280China – Country Analysis

Thank you!Dr. Raimond Selke, 7 June 2014

(2014) China - Country Analysis, Individual Assignment in International Marketing / MBA, 2014

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