Market Study in China
What is a market study?
Market study entails the gathering of market information which revolves around a particular industry or a sector. The information gathered through a wide range of quantitative and qualitative research methods serves the purpose of providing a comprehensive picture of the latest regional and global market trends in that particular sector, the key players, the impact of the socio-economic development of the region on the sector as well as the preferences and tastes of the potential clients, etc.
Why market studies are useful in China
Market study in China is an essential process for both new brand names attempting to enter a new market and well-established brands seeking to understand their positions in the market. A market study can provide very detailed pieces of information like how a front-line salesperson is performing in relation to his or her team. You can see from this example how the scope of a market study varies depending on the purpose and the objectives of the study. To conduct a precise market study, several factors need to be taken into consideration:
- Purpose and objectives of the study
- Profiles of the intermediaries (Language, age, gender, income, etc)
- Profiles of the requesting clients
- Time frames within which different steps of the study are carried out
- Geographical and cultural impacts of the different contexts upon the study
- Cross-checking of the data gathered
These factors impact directly upon the study and essentially determine how market strategies are designed. For example, for a cosmetic brand to evaluate its sales strategies, sensitivity towards the location of the points of sale, language ability, gender, cultural differences and tastes of the clients of the brand and that of the intermediaries, as well as the sales strategies of their counterparts have to be analyzed in detail. On the other hand, for a new cosmetic player to enter an existing market, information such as the market segmentation, global and regional trends, existing competitors and their development as well as product differentiation play a vital role in the decision-making on market strategies.
Methodologies for a market study in China
Some common research methods can be found here:
- Qualitative methods: Interview with experts, prospects or competitors. They can also be potential clients or competitors.
- Quantitative mehods: Questionnaires with yes-no questions with parts for verbatims and open questions (qualitative approach in addition to a quantitative approach).
- Desk research: we gather data through all the ways we can: books, websites, news feeds, blogs, magazines, thesis, newspapers, journals and periodicals, etc
- Focus groups: A group of persons gathered in a room (with tainted window for the client and simultaneous translation). We gather people through a screener to target the best the audience.
- Mystery Shopping experience & Store Check projects: Mystery shoppers and store checkers are used to visit shops or simple corners to collect data and test / rate products as well as the services and performance of employees.
Delivery of a market study in China by Daxue Consulting
Regarding the objectives of the market study, a market study can be displayed through various ways. For instance, it can be:
- Overview of the existing current market including a point on the regulation environment
- Commercial trends within some geographical limits
- Mapping of the shops / competitors
- Description of competitors and adjacent players in the industry and the country
- Screening of targets to buy / partner with
- Examples of successful ventures and companies in this market
- Value in numbers the market
- Benchmark of competitors and similar companies or businesses
- Conclusions to better asses strategy