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What Is The Effective Ways For Target Oriented Industrial Marketing In China?
Posted By: sophiajie9* on 7/21/2004 2:39 AM (CST) 125 Points
hallo, I am a trainee in one international company, we selling PVC foil for kitchen furniture. the company gives me the thesis topic is find the effective ways for industrial marketing in china, and there are a large numbers strategies to do business in china, but I would like to find the effective and efficient one. I need your help.

Posted by: visualwords* Accepted Answer
7/21/2004 3:09 AM (CST)
trade shows and/or publications would be the standard route.

Just to make sure I understand you correctly, you are a Chinese firm, and looking at better/different ways to promote your products within the country, is that right?

kelvin
 
Posted by: sophiajie9* Author Response
7/21/2004 3:51 AM (CST)
no, we are european firm , and want to exploit chinese market. but some other european firms have representative office already located there, so , intensive competetion for us.
 
Posted by: visualwords* Member Response
7/21/2004 12:16 PM (CST)
I see... I'm not familiar with your market segment but "PVC foil for kitchen furniture" sounds pretty darn niche to me.

if that is the case, you should know who your (all)competitors are already.

I assume your customers are not end-users, but prob contractors? I would then do a quick study on how contractors operate in China, procurement pattern if any, who makes decisions based on what etc.

you should have a clearer pciture on marketing options once you have there answered.

Also, call up your local PR of CHina trade commission. tell them what you want to do and specifically, what is/are your target market. they may be able to put you in touch with prominent players in the Chinese market. Again, get a list of a few and do some research on them as well.

hope this helps.

kelvin
 
Posted by: Peter (henna gaijin) Accepted Answer
7/21/2004 1:46 PM (CST)
In the Chinese (mainland) market, a lot is based around Guanxi, or relationships. You likely will find that you need to partner with a local firm there to effectively do business, and it is important that you choose one with the appropriate connections.

What Visualworlds said about trade shows and publications is generally true as the appropriate promotion sources. Language will be a barrier, so this is one area that partnering with a local would be instrumental (they act as your local face, and speak the right language).

If you send any press releases or do press tours, there is an added step you must do of passing out red envelopes to the press. Inside will be a small amount of money (often 500 RMB, or about 50 euros each). It is kind of like you are buying product mention in their publication. Is this ethically right or wrong? I don't know. But this is the way it is done there, and if you don't give the envelopes, you won't get mention.

There is a lot of interesting information on Chinese business customs at http://www.executiveplanet.com/business-etiquette/China.html.
 
Posted by: visualwords* Member Response
7/22/2004 12:13 AM (CST)
Peters right, but I hesitate to recommend partnering with local reps just because its such a hit-or-miss situation. Ive seen them work out really well, but Ive also seen some nightmarish situations.

in the long run though, this is most definitely recommended, or required in some cases. Having said that, In some parts (esp cities) I do notice that you get a better response as a foreigner pushing products, so really, you have to know who your targets are and plan/ work accordingly.

kelvin
 
Posted by: sophiajie9* Author Response
7/22/2004 4:06 AM (CST)
yes, you are totally right, the relationship is most important in doing business in china, and we need to find sb who is prominent player in this market to push our product into the deep. but our products are so niche, very specific aera use this, and there are a lot chinese small firm are also produce this PVC foil, but their quality is very low. we knew some south korean foil, taiwaness and japanese foil are also have good market in china, so we have to compete all of them.
about the red envelope, we also heard before, personally I think we should invest some money on it. just open the way for us.
 
Posted by: mbarber Accepted Answer
7/22/2004 7:29 PM (CST)
Ola Sophia.

I'd look to find a partnership with ab usiness that is NOT based ni China and that already has existing contacts developed in your industry.

So that might mean looking for another business that targets the same industry as you but with different products thatn you.

Get them to carry your product into the market using their relationships.

Overtime you will want to develop your own relationships and then consider (if neccessary) going it on your own. And in the initial stages use a non Chinese company with existing relationships in China
 
Posted by: bpfischer* Accepted Answer
8/12/2004 3:55 PM (CST)
Sophie-

I am spending about half my time in China these days, and the only thing I think I have learned is that Guanxi is absolutely critical to the on-going success of an enterprise. As a foreigner, you may be able to get meetings and even begin negotiating deals, but the level of competition (both high quality and low quality) suggests that without some strong local connections, you will be at a major disadvantage in the business dealings.

In addition, you will most likely need to target those companies that have a high need for a quality product -- most likely for companies that export their kitchen goods. I don't think a domestic (Chinese) manufacturer, creating counters, etc., for the Chinese market will have the same need for quality...

To that end, I would suggest that mbarber's recommendations are the right way to go, with one possible variation. Since so many companies are using China as their "manufacturing plant", perhaps there are European or American companies (with whom you already have a relationship) that can act as a starting point for your Chinese business. That is, focus on the companies that already do manufacturing in China (perhaps contract manufacturing) and have them specify your product as a requirement for their manufacturers...

Good luck!
 
Posted by: Sharon Moderator Response
8/12/2004 9:27 PM (CST)
Hello all.
I am closing this question since it's more than 2 weeks old. We do this to make sure members' contributions are rewarded in a timely manner and to improve the visibility of newer questions.
Thanks so much for participating!
 


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