With a population over a billion, China is the new market to conquer for every company. But settling there and selling your products will have many hurdles on the way. As a first step, you need to determine whether entering is a good thing for you. Whether it is from mystery shopping to quantitative surveys in China, you need to understand the way customers will react to your products and your brand.
As surveys in China are relatively easy to set (either through professionals or by doing them yourself), a good understanding of the Chinese culture will help you go further, as Chinese people don’t want to tell you what they honestly think at first, because they don’t want you to “lose face”. Therefore, it is often better to seek out a consulting firm in China, as they will give you better results than those you could collect.
Furthermore, depending on your industry, you will need to choose where to settle in China: for example, Shenzhen is a city turned towards the manufacturing of electronic components, while Chengdu is dedicated mostly to car manufacturing. Hence, choosing where you want to settle and sell your products will also be important.
Quantitative research in China is an important first step, as you will see quickly whether you can have success in China, or even if going there is worth it. But quantitative surveys are not the only ones you will need to go through: qualitative surveys, such as focus groups, are just as important.
Quantitative data will, however, be the first condition needed to enter China, as it determines how interested potential customers are, how many units you would sell etc… But quantifiable data that can be relied on will not fall in your laps easily, and it is important to plan and act on the advice of marketing professionals in China.
Pricing consultants help business leaders improve profitability and company value through effective pricing strategies. Strategic pricing isn’t just about making price adjustments. It’s about changing the way your organization thinks about pricing.
The Pricing Consultant in a company manages the delicate art of balancing economics and psychology. He will have a complete understanding of all the inputs needed to cost and mark up a product and how to marry them with the company’s desired margins and consumers’ willingness to pay. Within B2B and/or service-selling positions, the pricing analyst may also be deployed dynamically within the negotiation of contracts. As such, they can often be a direct member of the sales team.
In competitive and segmented markets, there are many demographics and psychographics of customers that exist. As a result, uniform and static pricing can be both uncompetitive and unprofitable. There will exist opportunities for price discrimination and seasonal flux to boost margins. The pricing analyst must monitor all facets of this market and understand the implication of pricing on both the customers and competition.
Pricing consultants in China will also need to understand the culture and the language of the country, to avoid blunders. An example is the way the number 4 is associated with death (they have a similar pronunciation) and is avoided in prices, floor numbers and even phone numbers. On the other hand, 8 is pronounced the same way as “success/fortune”, and is a very positive number to use in your prices.
All of these factors make it a necessity to find a good price for your products in China, and can determine whether your entry in the country is a success or a failure. As easy as it is to choose a price in other countries, China still revolves around old traditions and superstitions, making it harder to properly understand the market and the customers. Hence, there is a necessity to either hire someone with local experience or call to professionals who can help you set up a pricing strategy.
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