Challenges of Western Brands when Marketing to Chinese Literature review

Challenges of Western Brands when Marketing to Chinese - Literature review ExampleThis potential can be signified by the continual growth of retail sales of consumer goods, for instance retail sales figures increased by 3% in 2007 (PRC 2011). mainland China may be described as a full-grown and homogenous developing market. The huge population, the rapid industrialization and unprecedented economic growth provides manufacturers a great opportunity (Ewing et al., 2002). Multi-million Fast Moving Consumer Goods (FMCG) like coca plant Cola, Uniliver and Mc-Donalds have experienced a lot of success in this market. The consumer brand consciousness in china goes through four eras and steps into a post-industrialization era. The consumers attitude has seen a change from a supply-side orientation to a demand-side orientation (Schlevogt, 2000). Nolan (2002) once pointed out that china is moving rapidly to integrate with the introduction economy. The Preference For Domestic Brands There are s till some issues which may act as an impendent for international companies. One such impediment, cited by many scholars, is topical anaesthetic brand loyalty in china. Ayala and Lai (1996) claimed that foreign brands may find it hard to enter this market, due to the development of brand loyalty. Foreign brands underestimate the power of home(prenominal) brands and the degree of brand loyalty to them (Ewing et al, 2002). ... Other factors that internal brands have to contend with while competing with local brands are ethnocentrism and protectionism. According to Bates (1998) the idea that west is best is no longer the dominating factor for consumers first option. Although, western culture still does influence consumption behaviors, it tends to benefit local brands more than their foreign competitors. For example, thither has been a general cut down among businessmen to wear formal business attire, rather than casual wear. But local brands like Youngor and Firs have been the main beneficiaries of this trend instead of foreign manufacturers. European fashion was most aware by Chinese consumers, but consumers simply consider it as a source of choice rather than actually purchasing European fashion products (Bates,1998). According to Nolan (2002) when China joined the World Trade Organization, their local corporations needed to find a musical mode to compete on a worldwide field. Chinas industrial policy also faced many issues in the process of emerging into the ball-shaped business arena. These limitations in turn, constrained the development of local brands. For instance, policy inconsistency exists in the same industry, Chinas weak economy based, and failures in Chinas bureaucracy (Nolan, 2002). The Growth of Chinas Fashion Industry The Vogue China Fashion Index (2006) (the National Bureau of Statistics) found that Chinese consumers associate fashion with modernization, innovation and personalization. According to the statistics, 18.7 % of Chinese consumer s consider modernization as the highest factor while selecting fashion, and then followed by 17% who consider