MANY retailers underestimate costs of running a joint venture in China, and have unrealistic expectations of mainlanders' spending power, says Steve Chan, regional manager of Coca-Cola.
But while other multinational companies were over-optimistic about quick returns, Coca-Cola had conducted wide research and pitched its product at brand-wise consumers, he said.
Its marketing and research had made Coca-Cola the leading soft drink in the country.
''Effective marketing is very important in China because the country is experiencing rapid growth and is different to any other market in the world,'' Mr Chan said.
Since the open door policy, which began in 1979, consumers had become more aware, and now focused on brand names, looking for quality and an image.
''Having an international brand is important, but Coke has gone a step further in providing a whole image that people can trust and rely on,'' he said.