An example of such a strategy was implemented by Kraft\u2019s \u2018Oreo cookies\u2019. Chinese consumers did not like the cookies because they thought they were too sweet. In response, Kraft reduced the amount of sweetener in the cookies to cater to the Chinese taste. As a result of their adaption, the company\u2019s sales surged dramatically and Oreo has become the most successful cookie brand in China.<\/p>\n\n\n\n
![\"\"\/](\"https:\/\/cdn.morguefile.com\/imageData\/public\/files\/d\/diannehope\/03\/l\/1427424570gms8u.jpg\")
<\/figure><\/div>\n\n\n\n<\/p>\n\n\n\n
Mistakenly seeing China as \u2018one big market\u2019, rather than focusing on specific regions, demographics and areas<\/h3>\n\n\n\n
China is essentially a\u00a0diverse continent exactly like Europe. You would certainly not market a product in the same way all across Europe. China has over 600 cities, 22 provinces and is the third-largest country in the world. Focusing on China as a whole will likely lessen\u00a0one’s efforts and drain resources. Therefore, segmenting the market and choosing the right segments based on per capita income, region, and consumer behavior are of crucial importance when targeting a country this size.<\/p>\n\n\n\n <\/p>\n\n\n\n To really tap into the Chinese market one must utilize local experts, knowledge, and networks that specialist agencies have. Finding the right partner and forging these business links is key to success but it is important to choose the\u00a0\u2018right kind of partnership that will help, not hinder the business.<\/p>\n\n\n\n The successful British chain \u2018Costa Coffee\u2019 partnered with a Chinese firm, the “Yueda Group” based in Jiangsu Province. This partnership has proved successful and helped Costa gain a significant share of the market, it has currently opened 344 sites.<\/p>\n\n\n\n In contrast not finding the right partner can be disastrous. One of the most common issues with local partner companies is that they operate their own services, causing a conflict of interest when it comes to promoting a foreign partner\u2019s Chinese operations. However many firms specialize in helping western firms, thus there is no conflict of interest. It is important to research this prior to engaging with any other business.<\/p>\n\n\n\n Groupon in China exemplified\u00a0these problems. They partnered with\u00a0\u2018Tencent\u2019 which already owned and operated several similar\u00a0sites. Partnering with Tencent\u00a0theoretically offered\u00a0some advantages\u00a0with their\u00a0local knowledge and Chinese staff. However, Groupon\u00a0failed to take advantage of any of these, hiring Western managers to run its China operations and continuing to conduct its business\u00a0the\u00a0‘American way’ in a market where this strategy was not going to work.<\/p>\n\n\n\n A partnership is only effective if it helps the western firm to adapt, the interests of both parties cannot be conflicting.<\/p>\n\n\n\n <\/p>\n\n\n\n A failure to take local consumer needs into consideration is made worse in the context of aggressive competition from domestic brands. Due to the size of the market in China, local brands are able to grow to a larger scale and therefore can increase their chances of competing with established multi-national brands. There may be a high demand for western brands but this does not negate the threat of domestic companies who are often supported by the Chinese state and private equity firms.<\/p>\n\n\n\n The US-based taxi app company ‘Uber’ is in fierce competition with\u00a0the Chinese company\u00a0\u2018Didi Kuaidi\u2019.\u00a0<\/span>Uber\u00a0has been blocked from the largest social network in China, Tencent\u2019s\u00a0‘WeChat’ whilst ‘Didi Kuaidi’ will benefit from accessing the established consumer base\u00a0built up by\u00a0‘Alibaba’ and\u00a0‘Tencent’, two of the largest internet giants in China.<\/p>\n\n\n\n <\/p>\n\n\n\n The smaller, more elusive, and independent brands often thrive in China. Many\u00a0upmarket Chinese consumers are increasingly looking for niche and bespoke items. To keep in the loop companies should launch smaller, niche labels that are more unique to meet this demand.<\/p>\n\n\n\n Shaun Rein, the\u00a0managing director of\u00a0\u2018China Market Research Group\u2019, said; \u201cthe name of the game is to get a ‘niche’ brand, and companies need to focus more on marketing catered to the individual. They have to accept that they can\u2019t dominate the market anymore with just one big brand.\u201d<\/p>\n\n\n\n Tailoring a product to the consumer and offering something more specialized will often lead to brand loyalty as consumers can identify strongly with something more unique. In the competitive Chinese market it becomes even more important, consumers will pay a premium for something which sets them apart. The rise of consumer ‘individualism’ in modern China demands a more niche and intelligent style of branding.<\/p>\n\n\n\n <\/p>\n\n\n\n![\"\"\/](\"https:\/\/cdn.morguefile.com\/imageData\/public\/files\/s\/schick\/preview\/fldr_2012_09_14\/file9271347603403.jpg\")
<\/figure>\n\n\n\nNot finding the right partners and specialists in the field<\/h3>\n\n\n\n
![\"\"\/](\"https:\/\/cdn.morguefile.com\/imageData\/public\/files\/h\/hotblack\/preview\/fldr_2012_02_08\/file651328736079.jpg\")
<\/figure>\n\n\n\nUnderestimating local competition<\/h3>\n\n\n\n
![\"\"\/](\"https:\/\/cdn.morguefile.com\/imageData\/public\/files\/h\/hotblack\/10\/l\/1382888679j0fx6.jpg\")
<\/figure>\n\n\n\nNeglecting the rise and popularity of niche branding<\/h3>\n\n\n\n
![\"\"\/](\"https:\/\/cdn.morguefile.com\/imageData\/public\/files\/c\/clarita\/preview\/fldr_2008_11_08\/file0001878974179.jpg\")
<\/figure>\n\n\n\nNeglecting the smaller, specialist agencies based in China<\/h3>\n\n\n\n