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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 !!