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Challenges of Western Brands when Marketing to Chinese
Pages 9 (2259 words)
Review of Literature Challenges of Western Brands When Marketing to Chinese China’s economic growth, though patterned after the principles of the West, is proving to be progress towards a different path (Boisot and Child, 1996, p.601). China started an economic reform, in 1979, which allowed it to liberalize its economic and political regulations.
This potential can be signified by the continual growth of retail sales of consumer goods, for instance retail sales figures increased by 3% in 2007 (PRC 2011). China may be described as a large and homogenous developing market. The ‘huge population, the rapid industrialization and unprecedented economic growth’ provides manufacturers a great opportunity (Ewing et al., 2002). Multi-million Fast Moving Consumer Goods (FMCG) like Coca Cola, Uniliver and Mc-Donald’s have experienced a lot of success in this market. The consumer brand consciousness in china goes through four eras and steps into a post-industrialization era. The consumer’s attitude has seen a change from a supply-side orientation to a demand-side orientation (Schlevogt, 2000). Nolan (2002) once pointed out that china is moving rapidly to integrate with the world economy. The Preference For Domestic Brands There are still some issues which may act as an impendent for international companies. One such impediment, cited by many scholars, is local brand loyalty in china. Ayala and Lai (1996) claimed that foreign brands may find it hard to enter this market, due to the development of brand loyalty. “Foreign brands underestimate the power of domestic brands and the degree of brand loyalty to them” (Ewing et al, 2002). ...
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