PRODUCT COSULTANCY

Desired Product Consultancy for ABC

Executive Summary

China offers tremendous opportunity for grocery retailers due to its booming economy. Firms should capitalize on China's development to its advantage. China is not an ordinary market, as it offers a handsome opportunity for businesses. Chinese are different from the rest in many ways. Their values, customs and languages are quite different from the western values which firms should be well wary of. If firms are to succeed customized offering needs to be made by the grocery retailers, which should meet the aspirations and likings of the Chinese people. Businesses should learn Chinese cultures and values and focus on adjusting to Chinese market. For grocery retail outlets to do well in China they need to acclimatize themselves to the environment and offer customized offerings. The Chinese market is quite different from the US markets hence standardized products should not be offered in China.

Desired Product Consultancy for ABC

Introduction

China has achieved tremendous growth in the recent past. It is the only country in the world, which has had sustainable growth since the past decade. The economy has been continuously booming, with Chinese exports surpassing all expectations each year. With rising incomes the purchasing power of an ordinary Chinese has tremendously increased in the recent past. With China gaining prominence everywhere, foreign grocery retailers are looking at China as the best opportunity for their products. A recent study conducted shows us that China has exceeded US as the largest market for grocery and food retail. This in itself offers tremendous opportunity for grocery and food retailers.

The growth which China has achieved is unparallel and unheard of before. During 2006 till 2015, the grocery market in China will get triple in value and its estimated worth would be around a trillion pounds. As forecasted by IGD, The worth of US market will be 675bn by the end of 2015, while China in contrast will reach the superficial figure of £918bn. This is testimony to the hard work and dedication being put in by the Chinese people. No single firm could rule out the importance of this huge market. In modern times if a multinational is not located in China, then it's letting go a big opportunity.

Discussion

Chinese Business Cultural Environment

The growth in China has been fuelled up by three main factors. This is greatly attributed to rising population, economic growth and food population. The grocery retailers will not only benefit by being located in major cities of China, but even if they locate in second or third tier countries in China, they will fare well (Collins, D., & Whitaker, J, 2009, pp.225-230).

If your want to be successful for doing business in China, you will have to understand Chinese culture. Many Chinese are quite superstitious, they use divination tool such as “Feng Shui”to judge whether they can purchase the business location or not. If you want to get along with Chinese people, you have to understand 3 main definitions:

Guan Xi-Relationships or Connections

Saving face

Gift giving

Chinese ...