successful China market entry

What is the recipe for successful China market entry? | Daxue Consulting

China market entry plan

Entering the Chinese market is a challenging process. Understanding China’s business culture and political environment, and adapting to that, can help your brand, product, or service development in China. Daxue Consulting provides comprehensive market entry support for any international brand or company looking to enter the Chinese market.

Step-by-step China Market Entry plan

In the strategic set up of your China market entry plan, we highly suggest a formulated market entry structure, which includes:

China market entry plan
[Source: Hanny Naibaho – Chinese walking at People square, Shanghai]

1. Market Overview and Potential Assessment

Analyzing the business environmental conditions to realize the challenges, potential risks and opportunities, knowing how those factors would impact your brand in China to have an overall “picture” of the competitors’ landscape based on the market and its evolution.

2. Benchmark analysis with business cases of successful market entrants

Competitor benchmarking provides insight into what competitors are doing, their strategies’ pros and cons, and ultimately, your advantages comparing with them – either through adopting successful practices or avoiding ineffective ones.

3. Concept and Consumer Experience Testing

Concept and consumer experience testing help collect first-hand data both end-consumers and local professionals (brand managers, retailers, importers, traders, etc.), which validate the value proposition and also the concept of the brand. Moreover, these interactions with end-consumers, often through focus groups, will allow you to gain knowledge on the preferred purchase channels, information sources, as well as the acceptance of marketing messages.

4. Consumer Segmentation

Each key criteria need segmentation and breakdown of the total demand, which help the brand to identify consumers and quantify the potential of market share to be captured by a newcomer in their market entry. After the key segmentation, a generate “marketing personae” could represent the different consumer types, data-driven to well meets “their” needs.

5. Allocation of investment and implementation design

The final step will materialize the market entry plan by combining and correlating the findings from the research. An actionable road-map could be designed for the first 2 – 3 years in China, including:

  • Initial and yearly investment
  • Portfolio of marketing actions
  • Initial “Day 1” focus of consumer targeting and step-by-step scaling up operations
  • Partnership and network building
  • Financial statements and revenue generation models


Match the key requirements for successful market entry in China

The Chinese market is an attractive target for many foreign companies for such reasons like rising incomes, rapidly changing demographics, and increasing consumer spending, etc. Knowing the Chinese market and understanding the opportunities and challenges are necessary to create the correct market entry plan:

successful market entry in China
[Source: Jonas Lee – Chinese man walking before international brand campagne]

Market knowledge:

Entering and growing in the China market can be a daunting task for managers of foreign-invested enterprises. Due to the size and diversity of China and the lack of reliable centralized/official information databases, it is difficult to obtain information on certain industries, ripe markets, or companies. Thus, market knowledge must be obtained “on the ground.”

Regulatory environment:

Due to the particularity of the Chinese regulation in terms of multiple authorities is an oversight or the loose interpretation; foreign companies must ensure that they fully understand the regulatory environment before entering the china market.

Strategic consulting:

Strategic insight into the local company advantage within the competitive Chinese landscape is vital for foreign companies to gain market knowledge and insights into its competitors. Also, in some cases, international entrants may need to work with local partners incapacity.


enter the Chinese market
[Source: Raj Riamworakul – Chinese business district]

Follow the step-by-step China entry plan and have a good understanding of the Chinese market, regulations, and strategic consulting are the basic keys to success in the Chinese market. To have a further inform, thanks for contacting us and subscribe to our newsletter.

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