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TNS Outlines Six Golden Rules for Doing Business in China


3 Do’s and 3 Don’ts to Increase the Chances of Success in China’s Complex and Sophisticated Market Place

SHANGHAI, Nov. 28 /Xinhua-PRNewswire/ -- As many companies, both national and international, are seeking to expand their business in China, they are realising the need to tailor their marketing strategies to take into account the regional differences that exist in such a diverse economy. China is a vast and complex market and it is critical for a marketer to keep a hand on the pulse of the consumers all the way.

With the expansion of product categories, modernisation of the market place, the evolution of retail sectors and the increasing consumer demand for information and choice, the need for consumer insight and understanding of purchasing habits is crucial. Consumer market growth is already hugely accelerated beyond that of the West and iAAAApected to continue to evolve at this pace -- offering manufacturers and retailers, both national and multinational, huge opportunity.

TNS urges companies and brands to think about the following six Do’s and Don’ts before doing business or expanding business in China:

-- Don’t view China as a single market. There is no one face of the

Chinese consumer -- for most brands China is not one market, it’s at

least several, if not dozens. This fragmentation will increase anAAAAAAAA> most brands are now looking at China as a continent rather than a

single market.

-- Don’t just focus on Beijing, Shanghai and Guangzhou -- these cities

alone do not represent the face of the Chinese consumer. There are

currently 273 cities in China with population of more than one

million (Note 1). And consumers in these cities are increasingly

attractive to marketers. The complexity of tapping into these

consumers is increased as they are a population on the move -- 20

million rural consumers are becoming urban each year.

-- Don’t ignore the rise of the female consumer -- nearly 80% of adult

women are employed in the workforce. This is one of the highest

rates of female employment in the world and is much higher than most

Asian countries. Therefore the traditional "housewife" marketing

target is much less important than in other markets.

-- Do your research first -- businesses must be aware of entrencheAAAAAAAA> local competition, the complex marketplace, the cost of business anAAAAAAAA> the lack of available information. When developing marketing

strategies, companies must ensure that they maintain an acceptable

degree of global consistency but also allow for the flexibility to

deal with local market challenges and opportunities.

-- Do understand the middle classes -- The rapidly expanding ranks of

the middle classes (more than 100 million in China) provide a growing

population with a disposable income and an interest in western

culture and western brands. With the emergence of the middle class,

the last five years have seen a leapfrogging of the consumption of

discretionary items, AAAAAA China, for instance, the largest mobile

phone market in the world, and the home of the second largest

internet population.

-- Do be aware of local competition -- for example there are more than

1,200 brands of shampoo in China. Market research plays a key role

with helping local clients maintain their competitiveness now that

they are faced with multinational competition.

Jim Sailor, Managing Director of TNS Greater China comments: "The issue of balancing global and local needs is really a key issue for almost any global company that is operating in China. If a company is not flexible, and simply views China as just another country, there is a risk that they will fail."

In the past year, TNS has handled the following market information consultancy projects in China:

-- Expansion strategies for consumer products moving into secondary

cities

-- Understanding banking habits of affluent consumers

-- Studying the different roles of car dealerships in first, second anAAAAAAAA> third tier cities

-- National retail behavior monitored through TNS Worldpanel

Note 1: Source from China City Statistical Yearbook 2006

About TNS in China:

TNS is active in China both through the wholly-managed business known as TNS China, and through two joint ventures: CSM Media Research and CTR Market Research.

TNS China

In business since 1992, TNS is one of the first international market research agencies to start operations in China. In recent years, TNS has grown substantially and established itself as one of the most successful and reputed market research and consulting agencies in China, with 150 professional researchers and more than 300 employees in three full service offices in Shanghai, Beijing and Guangzhou. TNS China focuses on the Consumer, Automotive, Healthcare, Finance and Technology sectors.

http://www.tns-global.com.cn/

CSM Media Research

Dedicated to TV & radio audience measurement (TAM) research, CSM Media Research offers reliable and uninterrupted rating information for China and the Hong Kong SAR. As the "currency" of the TV, radio broadcasting & advertising trade, CSM Media Research operates the world’s largest TV and radio audience measurement panel, covering the 1.2 billion people in China who have access to TV and/or radio (including the Hong Kong SAR’s 6.5 million TV viewers). http://www.csm.com/

CTR Market Research

CTR Market Research is one of the leading market research companies in China. Specialist expertise includes Consumer Panel, Customized Research, Media & Brand Research, Media Strategy Research and Media Intelligence. http://www.ctrchina.cn/

Press information

Contact details:

Cindy Liu

Marketing & Communications Manager

TNS China

Tel: +86-21-6360-0808 ext.156

Fax: +86-21-6360-0908

Email: cindy.liu@tns-global.com

Website: http://www.tns-global.com

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