Entering the Chinese mid-market segment: key to long-term success?
Journal
Strategy & Leadership
ISSN
1087-8572
Type
journal article
Date Issued
2009-05-13
Author(s)
Abstract
The Chinese market has currently progressed to a fierce competition between international companies and their domestic Chinese competitors who continuously improve product features such as reliability, customer service and quality. Success in the Chinese market largely depends on the mid-market, which consists of Chinese customers looking for products of local quality available at local prices. Winning or losing the Chinese market depends on the mid-market because it is reported to be the fastest growing segment with the highest sales potential. Companies that conquer this attractive market segment will probably dominate the entire Chinese market because of the massive sales volumes creating essential economies of scale and scope. To succeed in the mid-market requires a specific set of competencies for both domestic and international companies. Based on existing management literature and research with international and domestic Chinese companies, the present article discusses how international and domestic firms should approach the mid-market.
Language
English
Keywords
China
mid-market segment
international companies
Chinese companies
strategy
HSG Classification
contribution to practical use / society
Refereed
Yes
Publisher
Emerald
Publisher place
Bingley
Number
5
Start page
31
End page
39
Pages
9
Subject(s)
Division(s)
Eprints ID
53549