公司

標誌

Market of China in Transition

HuNan GroupHo Man Chi, Karen

Lai Tin Ming, Terry

Ng Yue Wah, Tracy

To Ka Yan, Yammy

Tse Ka Kin, Stanley

Yu Hoi Ling, Daisy

MKT221 Marketing in the Chinese Mainland

Introduction

6 Key characteristics Economic sectors Work force Trade Communications and Infrastructure Foreign Direct Investment Economic growth

Economic Sectors

China economy by sector

Agriculture Industry Service

1998 18% 49.2% 32.8%

2000 15% 50%35%

•The Chinese government will inject more capital into large state-owned companies, optimize their structure and make them more competitive,"

•China aims to build 30 - 50 large, internationally competitive companies by 2010

Work Force

Population 1.27 billion

Work Force

700 million

People work in agriculture

350 million

Source : THE CIA WORLD FACTBOOK 2001

Trade

Export (2001): $232billion Import (2001): $197billion Trade Surplus: $35billion Exports of high-technology products:↑ Entry of World Trade Organization in

December 2001

Communications

US China

Telephones main lines in use

194 million 135 million

Internet Service Providers

7,800 3

Infrastructure

The facts US China

Highways 3.98 million miles

.87 million miles

Railways 140,281 miles 41,960 miles

Airports 14,695 489

Foreign Direct Investment

China's entry to the WTO Foreign investors poured $10.1billion into

China during the first three months of 2002 Tax breaks to attract foreign direct

investment into China Preferential rate of just 15 percent

Economic Growth

Economic growth rate:7.3% Average economic growth

rate:8.3% the sixth largest economy in the

world, in terms of GDP per capita

China's government spending is 12.5 percent of the Gross Domestic Product

Discussion

1) How does the transitional nature affect businesses?

2) Given the above, how should businesses develop plans and strategies in China?

Economic Sector

The businesses become much more diverse

Increasing the number of FDI

Technological improvement is essential.

Increasing the demand for skillful and educated labour

Economic Sector

Shift the investment from agriculture to industry and service.

Target market→ middle class of the society

Providing support services to the customers

Using Marketing research to identify the trend in future

Creating brand equity

Workforce

Labour Intensive Industry Adjust wages Rate Improve the welfare system

Trade

Cultivate concept of quality & safety of products (esp. high-tech. products)

Carry out more marketing research in order to open up new markets efficiently

Act ethically to increase image & branding

Communication& Infrastructure

1.Easy to distribute the product More likely to attract the FDI More channel to promote the business Producer and consumer can be easy to

obtain the information more opportunity for the business (online

sale)

Communication& Infrastructure

move the production line to the north of China reduce cost

distribute the product more far away A better supply chain management( just on time

production) make use of internet promotion Create a better customer relationship( a media

to contract with customer) Online sale( order, and after sale service)

Foreign Direct Investment

More opportunities for businessmen Rapidly development in China Keen competition in China

Foreign Direct Investment

General living standard increase, re arrange the target segment. More high income group

Keen competition, companies should be concern about quality of our products

Set a reasonable price and promotion strategy

Economic Growth

GDP will rise

(economic growth is measured by GNP/GDP)

investment will increase

produce better product/higher class brand Cost↑

forced to pay fees

upgrade their equipment or implement other costly changes

Economic Growth

Produce more profitable/high quality product Have more diversify product

↑∵ living standard Technology transfer through the import of

foreign equipmentbetter technology reduce the cost

Thank You !!