Doing Business in China - Making the most of the free trade agreement

In this section:

› Using the media
› Where to from here?

Traditional advertising in China often does not have the influence on purchasing decisions you'd expect in the West. Chinese are more reliant on third-party endorsements from friends and colleagues or their own research and reading. Many decisions are made at the point of sale. Also, especially among the elderly, there is not the brand awareness needed for successful advertising.

Almost 100 percent of Chinese households have a TV, with the government claiming 1.2 billion viewers, with each household having access to 32.5 channels.

All the major international advertising firms are present in China. There is also no shortage of local agencies that can provide smaller scale tactical advertising such as flyers, internet ads or mobile advertising.

Advertising in China is heavily regulated by advertising law which says advertising should “be good for the physical and mental health of the people” as well as “conform to social, public and professional ethics and safeguard the dignity and interests of the State.”

This law can be confusing and lead to inconsistent and arbitrary interpretations, especially from region to region, highlighting the need to use experienced local specialists.

Using the media

Print and broadcast organisations have enormous reach in China. The People's Daily newspaper for example has a circulation of three to four million.

It is difficult to get stories placed in the mainstream media as there are strict limitations on space and lead times can be long.

More useful for New Zealand companies looking to set up in China is the myriad of specialist publications - almost every industry has its own publication though not many are published in English.

Where to from here?

There's a lot to get your head around:

• How to identify your target market
• How to check out the competition
• How to differentiate your product in China
• How to set prices
• How to create and market brands
• Attending trade events and promotions