More domestic brands appearing on store shelves may indicate that the golden days for foreign brands are slipping away. “Made in China” was once considered a sign of cheapness and low-quality, but the belief now has changed. Chinese consumers now think that Chinese brands are equal to, or even exceed, foreign brands. As buyer confidence grows and domestic quality improves, what can multinational brands do to regain ascendancy?
China’s large and still growing population, accompanied by rising household wealth and rapid increases in healthcare spending, has transformed China into the world’s second-largest pharmaceutical market. In 2015, overall pharmaceutical sales in mainland China totaled more than $115 billion, placing China behind only the United States ($330 billion). With a population of over 1.3 billion, the sheer size of the market all but guarantees that the Chinese market will continue to grow despite the problems faced by the healthcare system. “Healthcare is the one market where the market size equals the population,” says Kent Kedl.
Chinese consumers have changed faster than consumers in probably any other market. Increasing exposure to international media and social media is changing the expectations of Chinese consumers. On top of that, the broad economic slowdown and brand saturation in China has ratcheted up competition to new levels as the days of easy money disappear. For both multinationals and Chinese companies, the changing market dynamics present challenges they have never seen before. In this interview, Torben Pheiffer, Managing Director of SapientNitro, China, explains how companies need to adapt their branding strategies.
Long the purveyors of advanced skills and knowledge, Chinese sea turtles, or overseas returnees, are now finding a different environment back home.
Multinationals in China are coming under increased scrutiny due to allegations of tax evasion.
Allen Wu, chip designer ARMʼs Greater China President, on how the company is navigating Chinaʼs increasingly treacherous environment for foreign companies.
Low communication costs and improved access to global markets for talent, supply chain requirements and customers is paving the way for micro-multinational companies. In the old days, startups were usually formed by people who’d known each other for a long time–relatives, professional colleagues, or old school chums–a small team that got together and created something […]
China’s fourth-tier consumer markets come into their own. If you travel to China’s poorest fourth-tier-cities such as Jiangsu Province’s Taixing in the hope of leaving behind the international brands that dominate the major coastal cities, then you will be disappointed. The familiar grin of KFC’s iconic Colonel Sanders is there to greet you outside the […]
Few people know that BASF, the world’s largest chemical company headquartered in Ludwigshafen, Germany, has been involved with the Greater China region since 1885. Back then, it started selling chemical dyes to Imperial China. Today BASF’s China offerings have grown beyond dyes to a diversified portfolio including petrochemicals, inorganics, polymer dispersions, polyurethanes, coatings, construction chemicals […]