Marketing Practices of China - Research Paper Example

?Marketing Practices in China Objectives The purpose of this research paper is to evaluate the emerging markets the Chinese community is venturing into when doing business. It closely examines three articles from two business publications, the Financial Times and the Forbes Magazine. This is done to determine the country’s trends in business and marketing practices. It aims at determining whether these practices are according to the set global standards. The purpose of writing this paper is to identify the country’s practices in marketing and determine their impacts on international trade. Introduction The research paper uses three articles from two international business magazines with bases in China to help determine their marketing practices. These articles are the Financial Times’ focus on HNA’s group international marketing activities by Jeremy Lemer and Simon Rabinovitch. They both report from two different places, New York and Beijing respectively. The Forbes magazine publishes an article that focuses on Chinese brands and their likelihood of success. This article is done by the reporter Marc Worth of Forbes magazine in Beijing. The final article also comes from the Forbes magazine from their writer Ucilia Wang in Beijing. It examines the opposition that Chinese trade encounters from their competitors in the global market. The purpose of this research is to determine the effects of China’s trade policies around the globe. It will also establish the strategies that the firms in the country are using to market themselves (Reuvid 48). This leaves the reader to ponder over the question as to whether the Chinese are using fair or unfair methods in marketing their products. The article from the Financial Times examines the activities of the HNA business group of China. The group is the first investment company from China to start purchasing property around the world. It indulges in purchases across various sectors ranging from the shipping industry, hotel industry and airline industry in various countries across the globe (Lemer and Rabinovitch 23). The company has a lot of capital and is increasingly obtaining more property around the world. The CEO of the group tells the writer of the article that they will purchase more companies outside his country. This will be because the financial crisis around the globe affects many companies. They will purchase those companies which are in debt since they will be cheap to acquire (Lemer and Rabinovitch 24). The other investment companies in China only invest their money in natural resources when investing outside their country. The company’s global focus comes after their witnessing of growth in their domestic activities (Luo 15). The business uses diverse marketing strategies and professional management styles that bring it success. The businesses future plans are to spread their investment activities to other continents around the globe such as Africa and the South American continents. The company invests in a series of industries that have relations to one another. Their investments are in various industries ranging from the airline industry, the hotel industry, the shipping industry and the entertainment industry (Lemer and Rabinovitch 24). The business is aware of the concerns and actions of their competitors and has measures to stop them. They plan to increase their investment in the financial and insurance industries in countries that are willing to accept their initiatives. However, management claims that they do not intend to invest in countries where the regimes are wary of their activities. This they say will not be good for their business activities and will not also enhance their growth activities. The management of the business also claims that all their activities are done in accordance with the existing rules and regulations (Lemer and Rabinovitch 23). The second article from Forbes magazine examines the chances of success for Chinese brands around the globe. The author states that their success is dependent on the favor they get among their own population. The article, however, states that most of their foreign markets cannot tell the difference between Chinese products and Western products (Worth 13). This is because the Chinese companies have branches in other countries which produce their products. After production they tag them with the brand names that the local communities find favorable to ensure that their sales do not drop (Worth 13). The article states that some Chinese companies are using the Western concepts of branding and planning of products market them. The author additionally states that these companies are achieving high levels of success in their efforts. The article also states that there is continuous acquisition of Western companies by Chinese businesses. This is greatly advancing their efforts of increasing their sales across various industries. He gives the example of the Chinese company Lenovo that did purchase IBM’s computer business in the year 2004 (Worth 14). He says that the company produces products with similar features to those of their western counterparts but at a cheaper price. He also gives the example of Huawei, a Chinese company that manufactures and sells consumer products such as Smartphones. This company is currently expanding their market to other areas where the influence of Western products is minimal. They are currently trying to market their products in Africa. The article attributes the growth of the Chinese products to the expansion and growth of their industries (Worth 15). He gives the example of the company JNBY, a fashion company with their headquarters in Hangzhou province of China. The company has branches in America, Canada and Singapore and is increasingly expanding the scope of their products. The article states the aggressiveness of the Chinese in expanding their products and business operations is greatly enhancing their profitability (Worth 15). The Chinese comply with the regulations in the market but offer cheaper and less superior products in comparison to their counterparts in the West. The third article that also comes from Forbes magazine focuses on the opposition that Chinese manufacturers are facing against their competitors. The author of the article, Wang, focuses on the opposition that the Chinese manufacturer’s of solar panels are encountering in America. The complaints that come against the manufacturers range from issues of their products submerging their markets while selling at relatively low prices (Wang 21). Their competitors are pressing for the imposition of duties on Chinese products and investigations to be done on their products. This will help in ascertaining the quality of the Chinese products along with the safety to the consumers using them. The author claims that the share of subsidies that the authorities provide for their companies should be made clear. The major worry of their competitors is the increase in the manufacture and supply of Chinese solar panels (Wang 21). They are selling at a cheaper cost at a time when their demands are on the decrease. The article states that the major markets for the solar panels have also cut down their purchases. It also states that most companies in the West are selling very few products but charging high prices. According to the author, the Chinese companies also have supporters in the West. Their supporters claim that regulations in the manufacture of the solar panels will cause a rise in their prices. This will end up limiting the country’s growth in the solar energy sector (Wang 22). They also claim that the oversupply of these communities helps to benefit the common man. Chinese products are affordable and are equally helpful to the common man though they are inferior than the products made in the West. The argument that the author presents is about the growing resentment of Chinese products among manufactures in the Western world. The growth of Chinese industries along with the widespread use of their products across various communities brings a reduction to their market share (Wang 23). The article gives the example of an Arizona company that produces electric power. He says that the company has been producing a large share of their communities supply but these is not the case anymore. The complainants claim that the Chinese companies are using unfair means of competition to acquire a larger share of the market. The author also claims that Chinese manufacturing companies are receiving unfair subsidies from their government. This is usually done to counter competition according to the complainants. They also claim that the Chinese government does not disclose the subsidies they award their companies. This is contrary to the World Trade Organization (WTO) regulations. Conclusion The increase in Chinese influence across various sectors of the economy is increasingly affecting the influence of their Western counterparts. There is a growing sense of insecurity in the Western world concerning the future of their influence across most economies (Czinkota and Rainkonnen 32). This is because the Chinese manufacturers are continuously coming up with products similar to theirs that sell more cheaply. Finally, I would say that Chinese businesses are growing fast due to their aggressive marketing strategies. Works Cited Czinkota, Michael, and Ronkainen, Ilkka. International Marketing, 2007. London: Cengage Learning. Lemer, Jeremy, and Rabinovitch, Simon. HNA’s Global Focus Setting It Apart From Its Chinese Rivals, 2011. Beijing: Forbes Magazine. Luo, Yadong. Strategy, Structure, and Performance of MNC’s In China, 2011. New York: Greenwood Publishing Group. Reuvid, Jonathan. Doing Business with China. 2005. London: GMB Publishing Ltd. Wang, Ucilia. U.S. Solar Installers Oppose China Trade Complaint, 2011. Beijing: Financial Times. Worth, Marc. Chinese Brands, When Will They Succeed? 2011. Beijing: Financial Times. Read More