How can a multinational company succeed in China?
Last year, when an apparel giant opened four stores in China and failed to gain a significant portion of the retail sales, multinational retail stores took note. The Gap, an apparel line successful in more than 3,000 locations worldwide, had everything going for them. So, what went wrong?
Businesses also need to understand which mediums work best in targeting this unique group of consumers. TV ad bombardment simply will not work. Instead, businesses should focus on internet advertisement as Chinese youth spend an average of 34 hours online each week compared to roughly11 hours spent online by youth in other nations.[5] Furthermore, Chinese youth are now spending more time at the mall than ever before, making them perfect targets for brand marketing. However, this group not only cares about brands, they care about fitting in, personal expression, and increasingly more about social responsibility.
[This article has been reproduced with permission from Knowledge Network, the online thought leadership platform for Thunderbird School of Global Management https://thunderbird.asu.edu/knowledge-network/]