Segmenting the Chinese consumer goods market : a hybrid approach

Due to the economic liberalization processes and the ongoing opening of the Chinese economy for foreign trade and investment, which have been carried out since 1980, Chinese consumer goods markets have been transformed from sellers markets into buyers markets throughout the last years. In such markets, characterized by a surplus of supply and a strong competition between a large number of national as well as foreign suppliers, a company can only succeed if it pursues a strategy of market segmentation. i.e. adjusts its product and as far as possible some other elements of the marketing mix to the needs and wants of one or several selected market segments. But up to now not only few but also rather inadequate empirical segmentation studies of these markets have been carried out and published. So, this book will present the results of a newer and better designed segmentation study of Chinese consumer goods markets. This study identifies and characterizes 12 market segments that are internally homogeneous and externally heterogeneous with regard to the product related needs and wants of their members. Moreover, it explains the possibilities of a segment specific tailoring of some other elements of the marketing mix. In that way it provides a valid and reliable informational basis for designing and pursuing a strategy of market segmentation in Chinese consumer goods markets.