Blog: Dean BestHow would your business fare in China?

Dean Best | 31 October 2008

So much media attention has focused on the pitfalls of operating in China in recent weeks with the country's food safety record taking a battering – again.

Nevertheless, as we all know, China offers so much potential that sometimes it pays to focus on the promise of investing in the country.

This week, China was the focus as just-food published its latest research report on the world's key emerging markets.

As the report highlights, the rapid expansion of China's food retail sector is underpinning the growth of the country's packaged food industry.

However, multinationals beware – China's domestic companies will not let you have it your own way.

And, what's more, Chinese consumers are said to be looking more and more to home-grown brands than the big global marks.

US publication Brandweek reports that, according to the latest research, Chinese consumers are “more loyal” to domestic brands than their international rivals.

Four of the “most trusted” brands in China are home-grown, including beverage brands Tsingtao and Master Kong. The likes of Olay and Sony fared well, according to a recent study by AlixPartners, but the research threw up some interesting questions about the clamour for foreign brands in China.


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