Chapter 4.9: Marketing Consumer Products in China

Li Yong, Deputy Secretary General, China Association of International Trade

Overview

The concept of marketing has only recently been introduced to China. Initially, it was as a university course, not as a tool in supporting sales efforts. As a result of economic reforms , the government has ended the closed distribution system and allowed free market forces to develop mechanisms that respond to true market needs instead of bureaucratic wants. However, the immaturity of the market economy has contributed to irrational product composition, leading to over-supply of un- marketable commodities and piling up of inventories, while a buyer's market has eventually taken shape. In addition, the entry of foreign investment has further intensified the competition in the market. Marketers, both foreign and local, are racking their brains for marketing strategies that will attract more customers.

China has a booming consumer market. The gradual dispersion and decentralization of trading rights which has replaced top-down leadership, central authority and monopolistic positions , have allowed marketers to compete on almost all fronts. The marketing tools commonly used in western countries are also employed by Chinese marketers, although they may not be as integrated and holistic as they could be.