How Can Consumer Products Multinationals Sustain Their Growth In China?
China Growth 2.0 Series
Consumer Products multinationals are drawn to Asia Pacific markets, especially to China, due to explosive growth in the last three decades. While many of them succeeded in their initial years of entering and investing in Asia Pacific region, and in particular in China, sustaining their growth has become a significant challenge in the recent 5 years.
We are pleased to release Deloitte China Growth 2.0 Series — multiple whitepapers that explore growth challenges of companies that are operating or planning to enter China. With the help of real-life case studies, we showcase Monitor Deloitte's methods of solving growth challenges using a fast paced, hypothesis driven, consumer centric and collaborative approach that leverage digital and analytics capabilities to derive impactful and sustainable results.
Our first paper of the Growth 2.0 series, examines a recent engagement where a premium global footwear brand from Germany wanted to establish a differentiated presence and realize an ambitious growth within Asia Pacific and especially in China. From this case, we explore what multinational Consumer Products companies can learn to realize sustainable growth.
Selected key themes which are essential to realizing success for MNCs are discussed in detail:
- Install a culture of adaption to tune in with the rapidly changing market environments in China
- Making explicit and purposeful choice of what to do and what not to do sits at the core of strategy.
- Don’t assume that Western branding and positioning will work as-is in China. Companies need to assess the market and consumer demand context and carefully define and communicate brand positioning to Chinese consumers.
- Choose channel partners carefully. Cultivate long term and trustworthy relationships.
Asia Pacific markets especially the Chinese market are attractive and high potential markets, but they require carefully crafted strategies and meticulous implementation to ensure sustainable success, especially given the ever changing consumer preference and growing competition from local and other foreign brands. We are committed to helping multinational consumer product companies to define their market-specific strategic choices and deploy them in a systematic way.