CHINESE MARKET ANALYSIS:
METHODS, RELEVANCE
Nowadays, there is a rapid development of industrial and trade relations with China. The market of China is of great interest for leading companies and businessmen of different countries. However, in its marketing analysis, certain problems arise. This is due to many factors.
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GEOGRAPHICAL LOCATIONThe large territorial area of the country does not allow analyzing the market as a whole. In the Celestial Empire, one can distinguish several markets related to their geographical location. Companies with complex services and expensive goods are located in the major cities of eastern China. At the marketing research, one conducts interviews with leading manufacturers of different cities of the eastern part of the country and draws conclusions.
Children's toys and electronics are produced in the southern part of China. In Shanghai, the fashion industry is based. And in the west, there are the largest construction companies. To analyze the entire market, one has to summarize the data of different regions.
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RAPID CHANGES IN THE ECONOMYCompetition between the developed regions of the country and huge infusions in its lagging regions are constantly changing economic indicators. Data received only a month ago quickly becomes obsolete. To solve the problem, use interviews with main competitors. The information received is processed, updated and turned into an in-depth analysis. After a while, it is necessary to repeat everything once again. Therefore, it makes sense to trust only the last indicators.
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CHINESE TRADITIONSLocal experts, who have experience in business, will be able to cope faster with the problem of market analysis if they have enough time to do it. The Chinese tradition of negotiation pays great attention to personal encounters and the atmosphere of trust to which these meetings have led. Negotiations usually take a long period of time and can be interrupted if they are accidentally infringed or rushed. Local analysts traditionally give the most correct result, as they know how the market works from the inside out.
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CONFLICTING SOURCES OF INFORMATIONThe sources of information are as large as the territory of China, and they are often controversial. How can one deal with it? It is necessary to distinguish the most accurate source from all others. The closest to the truth will be the one that comes from the place of goods production. Taking information from this source will be easier than collecting data from many others that have only a remote relation to the product.
If there are many companies producing goods, then choose the one that is longer present in the market, has a large share on it and has a stronger influence on its development. Analyzing the main resource, compare the data with what was given in the interviews of experts.
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UNUSUAL LEGAL SYSTEMThe Chinese system is a transition from tradition to international legal norms, so it is often necessary to use all sources for analysis. In addition to the cabinet studies, it will be useful to interview local representatives of the legislation, who will share how the rules are observed.
There is a vivid example of windows installation. The goal is to reduce energy consumption throughout China, but strict control over this is only in the northern part of the country. In the south, these standards are not followed because of the mild winters. Only the total research will give the correct result.
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Changes in the Chinese market make a constant phenomenon. It is necessary to constantly analyze goods, contractors and the market itself to find better conditions and readiness for future changes.