Challenges of Western Brands when Marketing to Chinese Literature review

Challenges of Western Brands when Marketing to Chinese - Literature review ExampleThis authorisation can be signified by the continual harvest-time of sell sales of consumer goods, for instance retail sales figures increased by 3% in 2007 (PRC 2011). China may be described as a large 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 Cola, Uniliver and Mc-Donalds dedicate experienced a lot of success in this market. The consumer brand consciousness in china goes through quadruplet eras and steps into a post-industrialization era. The consumers attitude has seen a change from a supply-side predilection to a demand-side orientation (Schlevogt, 2000). Nolan (2002) once pointed out that china is moving rapidly to integrate with the world deliverance. The Preference For Domestic Brands there are tranquillize some issues which may act as an impendent for international companies. One such impediment, cited by many scholars, is local brand obedience in china. Ayala and Lai (1996) claimed that foreign brands may view it hard to grave this market, due to the development of brand loyalty. Foreign brands underestimate the power of domestic 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 western hemisphere is best is no longer the dominating factor for consumers first choice. Although, western culture still does influence consumption behaviors, it tends to benefit local brands more than their foreign competitors. For example, there has been a general shorten 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 buying European fashion products (Bates,1998). According to Nolan (2002) when China joined the World Trade Organization, their local corporations needed to find a way to compete on a worldwide field. Chinas industrial indemnity also faced many issues in the process of emerging into the global business arena. These limitations in turn, forced 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 drift China Fashion Index (2006) (the National Bureau of Statistics) found that Chinese consumers associate fashion with modernization, entry and personalization. According to the statistics, 18.7 % of Chinese consumers consider modernizatio n as the highest factor while selecting fashion, and then followed by 17% who consider