Why conduct market research in China?
Optimize your market entry
Designing your business plan in China for a market entry or a product launch requires going beyond intuition and localizing your model in the Chinese market. Daxue Consulting promotes a data-driven approach, including an initial market research stage. The
better you understand all the dynamics driving your Chinese market, the better your strategy design for your market entry in China will be.
Analyze your industry and size your market
When it comes to new market entry, one of the first objectives should be a clear understanding of your real market potential in China
. For long-time China-based players, evaluating the size and nature of your market will also be essential when setting more tactical issues such as business turnover, value proposition adaptation or financing round.
Understanding the size of the market in China is a crucial requirement for companies, especially those that look for third-party financing such as venture capital.
Daxue Consulting’s in-depth market segmentation enables our team to disaggregate the market with the principal consumer segments you would like to address in China. We then use data collected to quantify these segments and evaluate what should be your market share target for each of them. To ensure the quality of the analysis, all integrated data tables are validated and cross-checked with internal databases.
Identify your key consumer segment targets in China
Identifying and prioritizing your future key consumer markets is another key part to be answered when entering the Chinese market. Market research in China will help you to answer such questions as: what are the profile types of my key consumer segments in China? What demographics and social categories should I focus on? What geographical areas will be most relevant for my product or service? How can I best reach them? How do they like to consume and what are their buying criteria?
For B2B type of needs, Daxue Consulting assists various clients by collecting a list of potential qualified prospects for relaying or supporting your service or product when you enter China.
Benchmark your competition in China
While this question will likely lead to intuitive answers in your domestic markets, what do you know about your competitors in China? Market research in China includes the definition of your competition framework.
Daxue Consulting leverages proven methodologies for the analysis of your key competitors. Our team uses market intelligence metrics to frame your domestic and international competition in China. Moreover, understanding how they brand their offer will help us to create a working hypothesis to be challenged by consumer research and distribution analysis, to design the most adapted unique selling proposition in China.
Define your distribution network in China
Integrating China’s distribution network for international brands has proved to imply very specific challenges. The boom of e-commerce and generally speaking, internet channels, has created a significant shift in the traditional structures of distribution of goods and services in the Chinese market. Understanding these new dynamics and where are your touch points with your consumer target will be crucial to your strategy in China.
While online channels are today the most intuitive keys to enter the Chinese consumer market for international brands, in any B2C sector, defining a tailored approach to entering the needed distribution network is crucial.
- Thorough research on the channels available in China,
- A comprehensive benchmark of both local and international competition best practices,
- A consumer research to examine how sales networks can match your target needs and expectations and
- Feasibility research for each selected channels(needed resources, daily management, regulation, the real estate if B&M)
Set up a long-term monitoring plan to anticipate future industry’s evolutions
Daxue Consulting’s China market intelligence tools
are aimed at providing a tailored and adapted market audit in your industry. We provide online and offline metrics on your Chinese market to track, monitor and analyze what is happening in your market, from competition’s marketing operations to rising consumer trends and sales volume evolution.
We monitor the market and then, alongside your team, create a database. This will be leveraged to better forecast the future impact of your operation on the market or to anticipate market trends and competitors’ actions.
Market intelligence tools in China will then give you valuable input for the full scope of your decisions from strategy design to day-to-day operational planning.
Our industry monitoring coverage includes consumer & retail, services to individual or enterprises, technology, automotive, resources & energy, sustainable development, financial services, manufacturing & industrial, healthcare, private equity, media & telecommunications. [See our industry cases]
Daxue Consulting has extensive coverage capabilities and research network over Mainland China, Hong Kong and Taiwan. It includes a network of local professionals in various studied industries, panel of end-consumers, fieldwork staff and access to reliable databases in any of the top 30 cities in China. We especially conduct regular research and market audit in: