Market survey in China how to deal with ....

Market survey in China how to deal with ....

Experts from China have agreed the economy must move from export-oriented to a consumer-based economy. This article describes a study to understand second largest markets showed an overview of the conduct of research in the less developed regions of China.

In their efforts to maintain high levels of economic growth and ensure the continued development of the western provinces and rural areas, the makers of China's economic policy have realized that Western consumers, consumers Americans in particular, can no longer be counted on to buy all consumer goods from the manufacturing bastions coastal regions of eastern Yangtze and Pearl river deltas.

Many China experts and market analysts agree that in the coming years the Chinese economy has to abandon the export-oriented economy of the past 30 years to focus on the consumer demand-driven economy, which we hope will lead to the inclusion of another 400 million consumers in the global economy.

Trying to grasp the absolute numbers may seem staggering enough, but for managers in various industries and sectors, recognizing that the numbers are not enough. As in previous years have shown, Chinese consumers can not be considered as a homogeneous group. Each province in China, comparable to the size of a single country in Europe has its own history and unique culture and are at different stages of economic development.

Western Companies in China

In the coming years, as Western societies farther into China, moving beyond dynamic markets, but developed the first smaller cities, traders, strategists and leaders at all to begin to questions about the characteristics of Chinese consumers in the second, third and even fourth tier cities, consumers who live in these regions relatively well developed, but have not yet had the chance to become global consumers.

In China, large cities can be divided into levels based on a number of factors, including population, income, geography, infrastructure, and historical and cultural importance. There is no official classification of these levels of government, but the first tier cities generally include Shanghai, Beijing, Shenzhen and Guangzhou, while second-tier cities including Hangzhou, Tianjin, Chengdu, Nanjing, Wuhan and Dalian.

Who are these groups of consumers? 

What are their expectations? 

What is important to them? 

What is the market size? 

Whatever the product category, the answer to these questions and many others will be crucial for both domestic and foreign brands in formulating their strategies for the next decade China.

This article will discuss a research project conducted by market team Labbrand consumer research which aims to promote understanding of the second largest market in China for a specific client. Through this project, some "golden rules" of research in less developed regions of China were made. As you will see, the design of the research and practice must be carefully tailored to the situation in the second and third tier cities in China to effectively research objectives.



Last summer, the team consumer market research spent  weeks traveling through Small cities  to observe and gain an understanding of the market dynamics of each region. The product and the segment in question were concrete tiles for the new class of homeowners across the country emerging countryside.

It was a potentially very attractive to the customer, but with limited resources, it was clear to them that qualitative market research in different regions is the first step to systematically increase their knowledge of the market and lay the bases for the development of an effective strategy to facilitate their entry into the second region of the province of Jiangsu and better understand the needs, expectations and perceptions of their target consumer news.

Before the fieldwork, the scope has been clearly defined and the following have been identified as necessary to get out of the study:

A detailed description of how the government organizes the market

An overview profile of each country visited (estimates of market size, the attractiveness of each region)
Principle of hierarchy for consumers and businesses and areas of lead generation. (Information key to understanding the dynamics of the market and growth potential.)
Profiles Distributor (analysis of distribution channels, pricing, payment terms, the range of products, distribution patterns alternative)
Description of the end user (buying behavior, payment conditions, needs, expectations, influencers)
Profiles competitors (product types, price levels)
Profiles of architects and their level of participation in the market. (That is to say whether or not the architects would identify the specific products to be used in the construction, and if their preferences are followed.)

Market In China ! 

The method of data collection was in-depth interviews. The organization of the interviews was to identify in advance those involved, develop guidelines detailed interview and then actually finding these people in selected locations. One aspect that became painfully evident during the fieldwork is that no matter how the team planned in advance, the successful completion of in-depth interviews depends on two things, being active in the field of eight hours -20 hours ("pounding the pavement", so to speak) and having a local driver who knew his way and could help make introductions.

The team originally intended to record all interviews, but it was not always easy to achieve, especially during interviews with government officials. Although it is possible to take notes during an interview, once the research team is back in the office of the analyzes and the writing of the report, it is often useful to have the content of the interview on the spot to look over if necessary. In addition, many times the client will need a copy of the interview for their records.

The design of the field research consisted of two phases. The objective of the first phase was to test out and interview guides to see all the information that the client wanted could be obtained in the predetermined time. After reviewing the results of the first phase of the team was able to deploy the fieldwork with the certainty that the research objectives are met.

Experience in China 

From our experience, we can summarize a few golden rules to achieve a qualitative research in second regions across China:

• Preparation is the key to know the product and be able to talk about it.
• Be flexible and take advantage of opportunities that arise.
• Be prepared to conduct an interview anywhere, get what you can and be thankful.
• Do not take everything for cash; be persistent.
• Go the extra mile, once you leave you can not go back.
• The results of the field work allowed the team to clearly describe the differences and similarities of each region, the profile of current distributors, end users and contractors to estimate the size of the market segments and understand and through which the policies of local and provincial governments are active in this market.

The main result of this project was the development of a roadmap for the client's marketing and sales teams to assess the attractiveness of a particular market. This included describing the main sources of data collection and the development of a multi-criteria decision making model based on specific variables, allows the client to assess the attractiveness of specific regions in relation to the other. This tool can prioritize specific areas for their sales teams and marketing to review before entering the area.

In a final strategic modeling workshop with the client, Labbrand developed an action plan for the development of markets that have combined their knowledge of the industry with our field experiences. This allowed them to clearly define how a new segment can be identified, this type of promotional material is needed, and what type of products can be sold.

From start to finish the project took about nine weeks. As is the case with any project that has a phase of intense work, sufficient time is needed to allow the team to recover. The analysis can only be as good as the data collected; precipitate the fieldwork a negative influence on the quality of final products.

Marketing in China

China has a long history, rich culture, one language, and ethnic groups, geographic, economic and regional differences. More foreign companies set their sights on the Chinese domestic market as a potential source of income consumption, they need to segment the market in order to take into account the local contexts in which they plan to operate, as well as profitable business opportunities. With the first tier cities like Beijing and Shanghai becomes increasingly saturated with domestic and foreign brands of everyday second cities and beyond to emerge as the next frontier for market development. Companies undergoing extensive market research and relevant in these areas before launching new products and services will have a solid understanding on which to base their branding, marketing and expansion decisions, thus contributing to their long-term success term.