Marketing to China's Consumers

In China's fast-growing market for consumer goods, most foreign companies sell premium brands to the most prosperous consumers. Several industry leaders have achieved sales of more than $1 billion, but the rest have failed to crack their first $100 million. To scale up, they will have to sell to the mass of consumers with middle and lower incomes. Few foreign companies have gone this route, however, because they fear hurting sales of their premium brands.

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Moving goods in China

It has never been easy getting goods to market in China; even producers of bulk goods and commodities find its transportation system cumbersome, costly, and slow. For makers of finished goods—whose needs are more complex—the situation is even worse: ships and railroads are slow and inflexible; modern trucking networks are nonexistent at the less-than-truckload level; and cargo planes account for only 20 percent of China's aircraft. Yet the business of getting goods to market may soon become more competitive in China—with improved services the likely result.

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Indeed, China is Huge !!