The “One-China” problem
November 1, 2006 by SwizStick
Filed under Supply Chain Management
The wise folks over at All Roads Lead to China have some valuable advice for those looking to offer products or services in China:
Even with all the differences though, many economists, politicians, and executives still characterize China as one market or the “China marketâ€, and to do so is to fail to understand the dynamics of China.
For many looking to sell into China, it will be imperative to understand the difference between the regions above. Believing that one logistics provider or agent can cover “China†will lead to failure as each region has different economic conditions, consumer markets, logistical infrastructure, and distribution networks.
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With China in many ways like the E.U., a truely successful entry strategy will be dependant upon the level of understanding one has about China and the ability to use that knowledge to create a strong strategy to capture the “China†market. Rather than trying to do so all at once with a blanket strategy though, the comapnies that succeed will be those that implement regional (multi-provincial, provincial, or city level) customization of the product or service and rollout over a period of time.
They have a handy map where they have broken the Chinese market into 5 distinct geographical areas with plans to breakdown the Chinese market even further along regional lines.
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