Growth Strategies

The financial crisis, a recessive world economy and largely saturated domestic markets bring it about: many Western companies are seeking for new sales markets in China. China turns into a place of refuge, because the Chinese economy will continue to grow and domestic consumption is supported by the government. Therefore, the Chinese market continues to offer excellent and enduring sales opportunities. Today companies do not go to China for low-priced sourcing or cheap production. The main reasons are to sell and to grow further.

The challenge is to further develop the Chinese market and to grow profitably. Many market segments at the East coast are already saturated and Chinese consumers further set themselves apart from each other. And they turn to domestic brands again.

It is crucial to develop growth potentials by using appropriate strategies and concepts. The most important preconditions are:

• Well-founded knowledge about the Chinese hinterland that has to be developed, especially about the demanded 2nd- and 3rd-tier cities.
• Knowledge about Chinese customer and consumer groups, their consumer behavior and demand-pattern.
• Information about effective and efficient sales channels to penetrate the Chinese market, for example franchising, e-Commerce and own outlets or chain stores.
• Knowledge about opportunities to develop and penetrate the Asian market from China.