Business Models and Marketing Strategies for the
Italian Companies Entering the Chinese Market




                       ...
   Literature analysis
   Interviews
     3 universities
      ▪ East China Normal University Shanghai
      ▪ Tongji U...
 several very different submarkets and
  subcultures
 Inefficient market, very few external
  economies
 Chinese people...
   Confucius Influence
     Harmonic relationship
     Group orientation
     Saving
     Long term orientation
    ...
 Ostentatious Use of Top brands more
  than in the West
 Customer service should be really high
 In Chinese society lif...
 Expatriates with deep knowledge of local
  culture
 High hierarchy
 Need of relational skills, not only technical
  an...
 There is a perception of Italian Style,
  but it is still confused
 Economic ranking and international
  value as natio...
Rotated Component Matrixa

                                           Component

                                 1       ...
 Westerns (mainly Italian companies) use in
  China a presumptuous attitude
 The linguistic-cultural barrier is often
  ...
 They should be adapted to the Chinese
  market (colours, sizes etc.)
 They should be explained to the
  customers
 The...
 Problems in translating the brand name
 Cultural-historical reference is really
                             values
  i...
   Sound similarity
     Audi
   Meaning creation
     Heineken
   Cultural similarity
     Red Bull - Insead
   In...
 Classic media are still
  strong
 Flagship stores really
  important
 Sales Promotions and
  discounts really
  import...
   Point of Sales Location (symbolic e
    commercial)
   Local Partnership are
    difficult
   Sales people training
...
 Arrogance attitude
 Low end products thinking
  of a primitive market
 Short term investment
 Be alone
   Cultural knowledge
   Long term strategy
   Manager knowing China
   Partnership
   Be able to adapt to the differ...
ign
des

             education



   service
              marketing
Mktg In China
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Mktg In China

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how enter the Chinese market with western brands and products

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Mktg In China

  1. 1. Business Models and Marketing Strategies for the Italian Companies Entering the Chinese Market Tiziano Vescovi Department of Business Economics and Management Università Ca’ Foscari Venezia Ca’
  2. 2.  Literature analysis  Interviews  3 universities ▪ East China Normal University Shanghai ▪ Tongji University Shanghai ▪ Zejiang University di Hangzhou  14 Italian managers and officers in China  4 international experts in China  5 Chinese entrepreneurs  5 international scholars (Belgium, France, UK, USA)  150 consumers
  3. 3.  several very different submarkets and subcultures  Inefficient market, very few external economies  Chinese people big bargainers
  4. 4.  Confucius Influence  Harmonic relationship  Group orientation  Saving  Long term orientation  Influence of the Concept of centralized planning  Key components- QCG  Focus on Quality (reliability and duration)  Cultural Similitude  Global Accessibility
  5. 5.  Ostentatious Use of Top brands more than in the West  Customer service should be really high  In Chinese society life styles are still very descriptive  Group is dominant on the individual therefore social reference brands are preferred
  6. 6.  Expatriates with deep knowledge of local culture  High hierarchy  Need of relational skills, not only technical and managerial skills
  7. 7.  There is a perception of Italian Style, but it is still confused  Economic ranking and international value as nation are important for the brand perception  Life style should be known and appreciated (identity) to give value to the brands/products
  8. 8. Rotated Component Matrixa Component 1 2 3 Punctuality .807 .144 .035 Precision .768 .034 -.027 Industriousness .644 .114 -.019 Safeness .627 .059 .292 Economic Strength .589 .269 .113 Elegance/Refinement .260 .735 .054 Attracting Lifestyle -.036 .701 .197 Creativity .159 .681 .092 Perfection .229 .626 .102 Tasty food -.118 .487 .389 Quality .383 .472 .371 Beauty -.046 .173 .811 Friendly .198 .251 .718 Reliability .510 -.048 .585 Sun .036 .405 .436 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 5 iterations.
  9. 9.  Westerns (mainly Italian companies) use in China a presumptuous attitude  The linguistic-cultural barrier is often underestimate
  10. 10.  They should be adapted to the Chinese market (colours, sizes etc.)  They should be explained to the customers  The value components should be described and understood by the consumer
  11. 11.  Problems in translating the brand name  Cultural-historical reference is really values important to build the brand value  Number 1 syndrome culture history
  12. 12.  Sound similarity  Audi  Meaning creation  Heineken  Cultural similarity  Red Bull - Insead  Integration  Ikea
  13. 13.  Classic media are still strong  Flagship stores really important  Sales Promotions and discounts really important  Frequent use of the mobile (sms)
  14. 14.  Point of Sales Location (symbolic e commercial)  Local Partnership are difficult  Sales people training  Franchising is at the starting point  Concept “dreaming Italy”?
  15. 15.  Arrogance attitude  Low end products thinking of a primitive market  Short term investment  Be alone
  16. 16.  Cultural knowledge  Long term strategy  Manager knowing China  Partnership  Be able to adapt to the differnt (changing) markets of the Country
  17. 17. ign des education service marketing

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