Firms told to tailor products for regions
FOREIGN companies targeting markets in China will increasingly need to tailor their products to reflect different regional and cultural demands, the chairman of Hong Kong's Australian Chamber of Commerce said yesterday.
Philip Day, who is also a partner with the Pacific Rim Consulting Group, told a meeting of the chamber that successful marketing will depend on identifying the ''Chinese consumption culture''.
He said: ''Tomorrow's consumer map of China will offer a two dimensional cultural preposition. Some global products and brands will continue to do well in China - others will not.
''Mobile telephones, McDonalds, Rolex watches, Levis, Ray-Ban sunglasses, while alien, are sufficiently attractive to survive the adaptation process intact. Other categories will be closer to the symbols, the rituals, the practices of Chinese culture.
''As examples, health care and home care will remain culturally highly sensitive and are ripe for cultural segmentation.
''Clearly beer and cola have an alien cultural base - but food generally could offer rewarding opportunities to cut through what I would call the global consumption culture and tap into rich Chinese cultural views.
''But perhaps KFC (Kentucky Fried Chicken) will need to become a CFC - China Fried Chicken, a stewed chicken.'' Mr Day said that while new entrants into China will need a local partner it is not wise to expect too much from them.
