China has a market that many brands look to make it in. However, foreign brands often have a harder time of getting started in the market and maintaining their presence in the market when compared to home brands. For example, Hershey had been performing brilliantly in the market for the past few years, but in the first quarter of 2015, they saw a huge loss in revenue, nearly 50% compared to the previous year. Due to this, they laid off 300 employees in China. So who do these successful companies make it on the Chinese market?
Ikea Makes Shopping an Experience
One company in the Chinese market that is having great success with the 2015 first quarter is Ikea. They offer affordable furniture in modern designs that people can try out before they take home. Their entire stores are designed to be comfortable, allowing the customers to make themselves at home. This is the number one way in which they are attracting consumers. However, Ikea has also reported that they have localized production, making their brand friendlier to those who live here.
Starbucks Encourages Customers to Take a Break
In the United States, Starbucks is often viewed as a place to go in order to get a quick cup of coffee and get on your way. However, they found that this business model did not work with the Chinese market. Instead, they offer Chinese customers a place to sit, talk with one another, access internet connections to stay up to date on the latest social media information, and basically take a break from the hectic of life. Starbucks also started offering coffee with fruits and green tea products, hoping to appeal to more Chinese consumers and their tastes.
Starbucks has seen profits up by 12% in Asia
These changes are what is helping the business to make it on the consumer market in China.
Apple Designs with China in Mind
A huge brand in China is Apple, which originated in the United States. The way in which this company makes it work on the consumer market in Chinese is by having the latest technology to offer consumers on the market. In addition, they are making their products to suit the needs of the Chinese consumers more and more. This coupled with the reputation of Apple, has led the company to be one that leads the Chinese market.
For a company to make it on the Chinese market, businesses do have to change their business plans to suit the needs and wants of Chinese consumers. This is why many businesses never seem to take off in China, as they are approaching the market in the wrong method.