Chinese Consumer Market Case Study

1. Fragmented and differentiated market
With the increasing attraction of MNCs to the size and growth of the Chinese consumer market, some are inclined to overlook the diversity among the indigenous consumers. The popular misconception of China as a huge market with homogeneous consumers often results in difficulties in evaluating demand and formulating effective marketing strategies. In reality, China is a large geographic area consisting of multiple fragmented markets; segmented by regional economic development and local culture. The Chinese also have diverse cultural patterns demonstrated by deviations in dialects, ideals, lifestyles, traditions, and customs. Consequently, these regional disparities affect people's perception of foreign commodities and willingness to purchase, presenting hidden barriers between the differing markets and making it challenging for MNCs to implement a national marketing and distribution strategy.

2. Small consumer market?

China offers the largest consumer market at 1.4 billion people, accounting for one-fifth of the global market. However, this figure does not take into account, the purchasing power of the Chinese population. Using a benchmark of annual per capita income set at $10,000, as measured in US dollars and adjusted for purchasing power parity (PPP), the Chinese middle-class shrinks to just 123m clustered in just 35m households predominantly located along the eastern starboard (REF !!SILKROADASSOC). While residents in China's coastal areas and major cities are increasingly better off, most people in rural areas are still living from hand to hand.
The majority of Chinese in the wealthier classes are choosing to do their luxury shopping abroad. In recent studies, Bain found that more ...

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...ness rather than as an effective deterrent.
China’s dual track system of enforcement: the administrative process and the judicial process. These infringes are often exacerbated by the Chinese judicial system. Right holders continue to complain about China’s civil judicial enforcement system. Companies have to go through burdensome legalization requirements in order to introduce evidence from outside of China into court proceedings. In certain instances, decisions are made based on local protectionism and bias towards local companies. In addition, there are concerns about the transparency of judicial proceedings, and particularly the non-reporting of important decisions. Enforceability of court orders and judgments is also problematic.
EDIT! Regulatory Environment.

REF quotes, diagrams etc.

Bring in governmental factors? Ask Fiona.