Product and pricing Strategies in China

Résumé du document

"China has new and efficient factories, an abundance of cheap labor and a willingness to use cutting-edge, lean management approaches in their facilities. This drives costs down substantially while offering reasonable quality." Whereas China is the perfect place to manufacture and sell slashed priced product to the growing Chinese middle class, consumer's expectations and purchasing patterns make the establishment of the product and price strategy complex. Growing competition and betting on quality or on price do not seem to be the only choices offered to marketing managers.

Extraits

[...] The corporations that offer highly sophisticated products or services which cannot be easily duplicated, have great market potential. Multinational companies are realizing they can't skimp on research because it is the only way to survive in this competitive market: "If we focus on price alone, we don't have a future." In the same time, it's rare for Chinese companies to meet the international norm of spending or more of revenues on research and development. This spending gap can give multinationals the edge. [...]

[...] Why do main of the companies prefer betting on a price strategy? Because they are in such a hurry to make a place for themselves, some companies tend don't care much about quality. The priority is to enter the market and target both high and low income levels consumers. Anyway, possessing an image as a low-cost provider is not necessarily negative if positioned with other important brand attributes. In fact, Chinese brands will be more successful if they leverage their ability to produce goods and services at a much lower cost and higher volume than alternatives. [...]

[...] More integrated approaches are going to emerge Too often, companies focus on the product characteristics, quality and price. Companies now need to take a rigorous integrated approach and anticipate, create demand with a product and developing superior insights into the consumer. Conclusion Chinese consumers now spend more time in front of display shelves, reading product descriptions with an interests never exhibited by consumers before. In all, it is clear that the brand name or price is no longer the almost sole factor in Chinese consumers' buying decisions. [...]

[...] Introduction "China has new and efficient factories, an abundance of cheap labor and a willingness to use cutting-edge, lean management approaches in their facilities. This drives costs down substantially while offering reasonable quality." Whereas China is the perfect place to manufacture and sell slashed priced product to Chinese growing middle class, consumer's expectations and way of purchasing make product and price strategy complex to establish. Competition growing, betting on quality or on price do not seem to be the only choices offered to marketing managers Overview Why do some companies prefer betting on quality? [...]