Strategies That Fit Emerging Markets - Essay Example

This study will give the analysis & insights into the different marketing strategies adopted by India in comparison to that of China and how these strategies impact the Growth of Retail in both these countries. This study will enable the businessmen from New Zealand interested in doing retail business in highly growing retail industries of China and India. China and India currently propose a wealth of opportunities for manufacturers and retailers, in accordance with their size and rate of transformation. China is the world's largest population with just under 1.3 billion population, augmentation of which is expected to be 1.4 billion by 2050. The major imperialist countries and their principle ideological apologists have invented a new political language and introduced new concepts to disguise the nature and the operation of their pursuit of global domination. Unfortunately, many writers such as Ahmed (1999), Arnold (1998), Batra (1999), Chang (1998), Dawart (1999), Kohli (1999) have accepted the new terminology and worst have echoed its claims. Most of the study will talk about the Economic growth in China & India that has been dramatic in the past decade. Batra (1999, 35) mentions that rapid efforts to modernize its economy have resulted in high GDP increases.       

Consumer goods companies have already established themselves with success in India; there is huge potential for future development as the country modernizes. Whereas National and regional brands are still extremely strong, and multinationals have to be aware of the extent to which they need to adapt their products and marketing to the Chinese consumer. (Neupert, 1997)

            With a population of more than one billion hungry for better infrastructure and more consumer goods, China is the biggest single business opportunity that exists today. China is already among the largest markets globally in a wide range of industrial and consumer categories and mostly a market so large it is impossible for most international businesses to ignore.  With this growth not expected to slow down any time soon, the list should continue to grow. In this way, India is mimicking and still trialing Asia's other Goliath: China. Beijing's cadres embraced market reform much earlier than their Indian counterparts did back in the late 1970s-and have been much more devoted to liberalization. As a result, Chinas per-capita income, now about $900, has been growing at least twice as fast as India's for the past 20 years. (Prahalad and Kenneth, 1998) With incomes rising in China, foreign investors found a more sizable market for their wares there than in India. For example, China has 230 million mobile-phone users, India has a measly 18 million.

Before we delve deeper into institutional voids, it's important to understand why companies often target the wrong countries or deploy inappropriate globalization strategies. Many corporations enter new lands because of senior managers' personal experiences, family ties, gut feelings, or anecdotal evidence. Others follow key customers or rivals into emerging markets; the herd instinct is strong among multinationals. Rangan (1997) for instance mentions the reason U.K companies preferred to do business with China rather than India for decades was probably because of UK’s romance with China, first profiled in MIT political scientist Harold Isaacs's work in the late 1950s. Kohli (1999) pointed out that partly as a result of the work missionaries and scholars did in China in the 1800s, Americans became more familiar with China than with India.