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É feito em América quente em China… Assim onde é todos?

Janeiro 8o, 2008 por histórias do sucesso do negócio de China

Muitos ESTADOS UNIDOS. as empresas de pequeno porte estão faltando o barco quando vem a China

Por Geoff Luz

Produtos americanos em ChinaEm anos recentes, a classe média forte de China atraiu a atenção dos negócios worldwide. O grupo consultando de Boston (BCG) estima que há 25 a 30 milhão casas do middle-class em China. BCG anota também que estas casas não parecem ser momentum perdedor. Desde 1999, as casas do middle-class esclareceram uns 36.6 por cento constante do wealth* de China. Se americano as companhias poised para alcançar estes consumidores, negócios e os ESTADOS UNIDOS. a economia terá muito para ganhar.

Os corporaçõs grandes, americanos - tais como o Wal-Mart e o Starbucks - pavimentaram a maneira para outros ESTADOS UNIDOS. companhias para vender produtos em China. O mais recentemente, os varejistas high-end da forma ajustaram acima lojas no país.  O Marc americano Jacobs do desenhador de forma, por exemplo, tem quase a mesma quantidade de Marc por lojas de Marc Jacobs em China como faz nos Estados Unidos.

Mas, China não tem que ser um mercado para somente um seleto poucos conglomerados globais. Muitos ESTADOS UNIDOS. as empresas de pequeno porte também estão vendendo seus produtos em China - mas para ter feito exame não bastante da vantagem cheia do potencial de China. De acordo com os ESTADOS UNIDOS do departamento do comércio. O serviço comercial, o potencial de exportação de empresas pequenas e médias (os SMEs) são “enormes.” Os SMEs esclarecem quase 97 por cento de ESTADOS UNIDOS. os exportadores mas representam ainda somente aproximadamente 30 por cento do valor da exportação total de ESTADOS UNIDOS. goods*.

If an SME is not looking at China‘s business potential, it should be. Without a strategy to reach China’s consumer market, U.S. businesses stand to dull their competitive edge.

Wanted: American goods
Chinese consumers buy American products – and they want to see more of them on store shelves. In 2005 and 2006, UPS conducted a survey of urban, middle class consumers in China to help its customers do business in the world’s fastest-growing economy. The 2006 survey revealed that American DVDs and CDs, moisturizer, athletic shoes and blue jeans are most popular among Chinese consumers.

China’s complexities
To be successful in China, American businesses cannot assume that “one size fits all.” China’s people live across 3.7 million square miles with multiple climates and speak countless dialects. So it’s not hard to imagine that Chinese consumers – like Americans – have diverse preferences.

The China consumer survey found that purchasing preferences varied by age group, gender and geographic location.

Do celebrities pack a punch?
According to the research, almost half (46 percent) of consumers surveyed between the ages of 20 and 29 say they like celebrity endorsements, whereas 29 percent of respondents between 50 and 59 want to see celebrities in advertisements.

The survey also found that consumers in China want the best products – not necessarily the cheapest. Marketers should communicate messages of quality in advertisements, as it is the number one factor when making a purchasing decision.  The More than half of consumers (56 percent) hope to hear messages about quality ingredients or workmanship in ads for U.S. products.

But who is the best person to endorse the quality of a product? We engaged local employees and their friends to serve as sounding boards for what our survey uncovered.  Of those we spoke with, we found that Cui Ping, 31, from Beijing, likes celebrity endorsements for imported products. But Yuan Rong, 29, from Xian, doesn’t. “Celebrities are everywhere,” Rong said. “You have to see them even if you don’t want to.”

In contrast, Ping said that celebrity testimonials imply product quality. “I believe that companies that can afford expensive celebrity endorsements have real strength. To me, the more famous a celebrity is, the better the product will be because celebrities have to take care of their reputation.”

This commentary underscores that while quality may reign supreme, there is no consensus on who is the best person to communicate quality-centric messages. This commentary is also a good reminder that China and its growing middle class of consumers are not a mass market as they have wide-ranging opinions and preferences.
 
Credit cards and more
Opportunities for small businesses will continue to grow as Chinese consumers use credit cards and shop online more often. More than half of consumers in the survey said they used credit or debit cards for shopping, and 40 percent have shopped online.  We expect this trend to grow as many consumers are looking to further integrate their credit card into their lives. A 2007 Citibank report on cultural insights of Asians and their credit cards, found that 43 percent of those surveyed were eager to see their credit cards double as a form of personal ID*.

How to conquer the new frontier 
With a strong consumer base spanning ages, cultures, geographies and genders, China isn’t merely an “emerging market”; it’s a new frontier for many U.S businesses. How can the average American business take the first steps to take the mystery out of exporting to China? UPS offers the following tips:

1. Know before you go
Research is the critical first step for businesses seeking to export to China. This Web site (www.chinasuccessstories.com) provides noteworthy anecdotes from others who have had business and social experiences in China.  Another good resource is from the U.S.-China Business Council, which supports U.S. businesses in China and offers news and other resources for U.S. firms. Its Web site is: http://www.uschina.org.
2. Find the right partners
Partnerships are the key to doing business in China. Small companies, in particular, can get ahead by using the existing infrastructure and relationships of buyers, distributors and transportation companies.
3. Make smart transportation choices
Some transportation companies can make things even easier by consolidating shipments to save time and money. For example, shipments being flown to multiple Chinese cities can clear customs as one unit and bypass distribution centers to speed up delivery times.
4. Automate and integrate
Pick a transportation provider with technology that specifically understands customs regulations.  UPS recently launched a paperless customs form that automates all customs information, meaning that you don’t have to manually input tedious customs documentations. Inaccurate or incomplete customs forms are the number one reason parcels get held up at customs. 

Geoff Light, International Business Development Manager, UPS: www.ups.com

* “Wealth Markets in China; Exciting Times Ahead.” The Boston Consulting Group Inc. December 2005. Tjun Jang, Thomas Klotz and Thomas Achhorner. 
* “Why Export.” U.S. Commercial Service. http://www.buyusa.gov/philadelphia/whyexport.html
* “Payment Evolution Report.” Citibank. June 2007. http://www.citigroup.com/citigroup/press/2007/070625d.htm.
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7 Responses to “Made in America is Hot in China… So Where is Everybody?”

  1. Simon Says:

    Hi Geoff, Nice One. Especially, it matches the topic: China success stories.

  2. Jim Knecht Says:

    Geoff, I get to say “I knew him when…” Looks like you are doing great. Thought you might like to hear from somebody who’s back on the good old Cinti. Twilight. Yep, they eliminated my cushy HR job last March so I’m working my final year where it all started. Congratulations on your success and good luck, Dude!…Jim Knecht

  3. Heather Says:

    I agree with most of this assessment, however McKinsey just completed a survey of consumer preferences in China and found that most Chinese actually prefer local brands to foreign. I think the preference for foreign brands is limited to products where there is no local comparable product. If there is a local brand offered of similar quality, they will choose that. Many of the foreign brands that are doing well here have ‘disguised’ themselves as Chinese brands with a Chinese name, logo and packaging. The survey also said most decisions were made at point of purchase. Not while viewing an ad or billboard - so in store displays and promotions are key.

  4. Shawn of MeetChinaBiz Says:

    May I propose two scenarios and two words to sum it all up?

    For those who are shopping for “utility”, they are “Price-performance Ratio”. That explains the local brand preference given comparable quality.

    For those who are shopping for “vanity”, they are “Conspicuous Consumption”. That explains why US products do extremely well in certain categories.

    So it depends on what kind of product you are selling and who your target audience is.

    Makes sense?

  5. Shawn of MeetChinaBiz Says:

    Hi Heather, is there a url for the McKinsey survey that you were talking about? Thanks, Shawn

  6. Heather Says:

    No, I only saw a hard copy after someone received a briefing from them. CER covered it after the report was released however: http://www.chinaeconomicreview.com/dailybriefing/2007_10_29/McKinsey:_Chinese_consumers_prefer_local_brands.html
    Some of it may be covered here but I’m not sure: http://www.mckinsey.com/mgi/publications/china_consumer/index.asp

  7. Shawn of MeetChinaBiz Says:

    Many thanks, Heather. Judging by the number of surveys on this topic out there on the internet, it looks like a survey of the surveys is due :-)

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