The European companies must learn how to promote, sell, and distribute products or
services through a variety of channels and retail formats in China. For global consumer companies,
building this kind of regional–local Channel can be an enormous challenge—but it can’t be ignored.
The most successful global consumer enterprises are radically reshaping their
organizations and business models to suit the global rapidly evolving high-growth markets.
China’s emerging economies are leading the world out of recession, and the global consumers are
taking the baton from their overextended counterparts in developed countries. Are the largest
global consumer enterprises ready for this momentous shift?
Most sophisticated multinationals must change significantly to realize China’s growth
potential. The country is as diverse as it is vast. Its markets come in a bewildering
assortment of sizes and development stages, and its customers hail from a multitude of ethnic and
cultural backgrounds. Their tastes and preferences evolve constantly. The speed and scale of
change in Chinese consumer markets can surprise even experienced executives. To meet the challenge,
global companies will have to organize themselves globally to coordinate strategy and use resources
in the most efficient way while at the same time targeting the tastes of consumers on a very local
Chinese level.
Go where the growth is
China is the world’s biggest market for many consumable products and services,. For the first
time ever, China is top the United States and Japan as the world’s largest automobile
market by number of vehicles sold. China’s rank may slip back again as sales in those two advanced
economies recover. Even so, with China’s car ownership at fewer than 20 vehicles per thousand
citizens, compared with more than 400 per thousand in the United States, the long-term trend is clear.
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