Multinational consumer goods companies in China Market Strategy Analysis.doc

 PAGE \* MERGEFORMAT 8 Multinational consumer goods companies in China Market Strategy Analysis A large population, vast area, a huge market, rapidly growing economy. For any one cross-border consumer enterprises are huge temptation, but at the same time, these opportunities will be transformed into the Chinese market in their ‘Waterloo’. If you would like to see the world there Which well-known consumer goods companies do not enter the Chinese market, then the result is sure to make you very upset. In our lives, from food to drink to use, cross-border consumer brands everywhere. The world’s two carbonated beverage company (delicious, Pepsi), the world’s two major fast-food chains (KFC, McDonald’s), the world’s largest personal care products company (Procter amp;amp; Gamble), the world’s largest manufacturer of several mobile terminal (Nokia, Motorola) from time to time are with us about. According to statistics, in 2004 domestic retail consumer goods totaled 5.395 trillion yuan, 13.3% increase over 2003. Domestic full-year 2005, total retail sales of consumer goods will grow by 12.8% to reach 6.0855 trillion yuan. All the global giants in China’s vast market, this piece pull out all the stops to enjoy the country’s annual GDP by 8-9% of the enormous opportunities. Most telling is the data, let me look at these cross-border consumer group in China’s performance in the end of the fight in this period a bit on the answer sheet. In 2004, the world’s second largest market research company TNS (China) on the domestic consumer goods market, a study shows that currently only 23% of the multinational consumer goods companies in China to maintain profitability; 47% in the break-even status; is expected to be able to 2 profit during the year accounted for 17%; 13% of the companies expressed the need for five years or a longer period of time to achieve profitability. Results turned out to be so unsatisfactory, in the end is what causes such an outcome. Let us first tak