But with the growing pressure placed upon companies to create packages that attract consumers and differentiates them from  competitors, some brands may feel lost when faced with the challenge of packaging, especially in Asia. Discover the keys to creating the best packaging design in China when localizing your brand and respecting the environment.

Packaging design in China, a business’s primary selling tool

The power of packaging in China: boost your sales

We have all heard about the ‘Moments of Truth’ theorized by Jan Carlzon in 1985, defining the stages when customers interact with products during the purchasing process The critical thing to remember is that every time a consumer comes into contact with a brand it is an opportunity to pursuade.

And this is here that we understand the importance of packaging design in China. It is a key element of the first moment of truth when the consumer looks at your product (in-store or online). When you consider that there are about 20,000 products that are before the eyes of a typical consumer during his 30-minute shopping in a grocery store, then it is obvious that packaging is a crucial element of your strategy.

Product packaging in China is the most tangible representation of a brand for customers. Indeed, packaging design has less than 3 seconds to grab the attention of a consumer. Those 3 seconds are extremely important because more than 70% of purchasing decisions are made at the shelf (in-store or online).

Additionally, the 2018 HKTDC Research survey unveiled that, compared to 2013, the importance attached to packaging design (for food products) has increased significantly in China. On the other hand, the attention paid to raw materials used and the price has declined.

Why it is necessary to adapt your packaging design in China

One would think that because Chinese consumers love foreign products,there is no need to adapt your packaging to the market. Why adopt a more Chinese identity when consumers love the look of European or American products?

On the one hand, it is true that Chinese consumers see foreign products as higher quality. In fashion, sportswear, cosmetics, jewelry, and baby care products for examples, the Chinese more often trust Western brands than local ones.

However, when it comes to the design-related topic, China is still regarded as a unique market, which is even different from other Asian countries. Thus, colors, shapes, materials, and designs are culturally specific:

In addition, it should be noted that even though young urban consumers are increasingly worldly and better at English, most Chinese do not speak proficient English (only 10 million people speak fluent English) and therefore an import product needs a Chinese name, a Chinese brand signature and all communication media translated into Chinese. An essential first step when thinking about your packaging in China.

Thus, getting the right unboxing experience can have a serious impact on your sales in China, that is why you need to understand the packaging preferences of Chinese consumers in 2019.

How to adapt your product packaging in China to the preferences of Chinese consumers

Colorful packaging design in China, yes, but beware of Chinese meanings!

Colors increase brand recognition by 80% and influence 65% to 85% of product purchasing. In China, it first helps people to identify the target of the product. For food packaging in China, it can be a good indicator of the ingredients of the product (e.g., sugar, healthy ingredients, fruits…). Also, because of the Chinese market’s food and beverage counterfeit problem, packaging color consistency helps the consumer know that the product is real.

Choosing the right color palette for your packaging in China is, therefore, a big challenge. Here is a short guide on what you need to know about colors in China:

In traditional Chinese culture, red is a highly symbolic color, reminiscent of luck and prosperity (which is why it is everywhere during Chinese festivities such as Chinese New Year). Gold is seen as the royal color.

Blue is a fairly neutral color, often reminiscent of masculinity.

Green is often seen as a negative color because it is associated with infidelity and anger, even if we see more and more vegan or healthy brands opting for green packaging.

Finally, as far as black and white are concerned, Chinese standards are quite different. White is seen as the color of purity, simplicity but is also the color of the funeral. Brands must, therefore, be vigilant. As for black, it is a common and neutral color used in everyday life. Note that in the food and beverage shelves, there is almost no black packaging.

According to Labbrand, Chinese consumers generally find appealing bright and flashy colors for food and beverage items and tend to prefer white and pastel colors for cosmetics and household products.

Moreover, the most essential step is to apply the right color for the right product. It is not enough to have red and gold packaging to attract Chinese consumers.

Logo and brand names: finding the right fit

Beyond the colors, your packaging design in China must include your brand name and logo so that it is easily recognizable. Thus, the adaptation of your name must be done in Chinese. This will help you convey your message more efficiently and activate word of mouth (challenging to recommend a brand that you can’t even say or write).

As you can see above, some brands have decided to convey a stronger message in Chinese using characters. This is the case of Heineken which has chosen, as a Chinese brand name, 喜力(xǐ lì). 喜(xǐ) means ‘‘like’’ and 力(lì) means ‘‘power’’. In Chinese, Lay’s is sold as 乐事 (lè shì) which means happy things. Colgate has also chosen a Chinese name to emphasize on the quality,  高露洁 (gāo lù jié)  meaning ‘‘high reveal clean’’.

This will also help you avoid negative connotations of your name in Chinese. For example, the Bing search engine has not been very successful in China, particularly because of its similarity to the Chinese pronunciation of “sick” (bìng 病).

Packaging material: what are the 2019 trends in the packaging industry in China?

According to the latest report named Latest Trends and Key Issues in the Chinese Retail Packaging Market, China sees a growing trend in the use of flexible, glass, rigid plastic, rigid metal, and paper & board packaging materials.

Among these trends, the increasing demand for lighter and cheaper packaging makes rigid plastic the most used and preferred pack type for FMCG products. In 2018, rigid plastic and flexible packaging were among the major share gainers with share growth of 3% and 1% respectively.

However, the packaging industry in China is in a state of transition. Indeed, the Chinese are increasingly turning to a green lifestyle and are trying to buy more environmentally friendly packaging. For example, some brands have started to use recyclable materials for their products, which has an impact on sales despite a higher production price.

Finally, food packaging in China sees great innovations. Some materials are chosen for how they benefit the products, such as antimicrobial properties and mechanical strength.

Creating packaging design in China, steps, and tips

One of the most difficult things to do when you want to localize your brand in Asia and work on new packaging design in China is to find the right partners. Daxue Consulting provides you with the best advice to work with the right packaging manufacturers in China, to make green packaging in China your first choice and ensure the best results for your product. 

Dealing with packaging manufacturers in China: two leading solutions

• Custom designed product packaging method (OEM)

This method consists of giving your packaging manufacturer in China a very specific request.

This requires that you have previously designed your packaging. If you have a design department, then this method is definitely for you. In China, suppliers are used to handling these requests. However, if you do not have a specific department for design in your company, you will probably need to call upon a professional to choose the right material, thickness, dimensions, Pantone colors, etc.

The disadvantages of this method are the price, the execution time (in China, count between two and four months), and the quality. Indeed, when manufacturing a product with special requests, quality problems are frequent.

• Using a factory designed product packaging method (ODM)

This second method consists in choosing a packaging from a selection proposed by your packaging manufacturer in China. An ODM factory will offer you packaging according to the functions of your product and your expectations.

Most suppliers in China have five to twenty different standard packaging models for their customer’s selection. You will not be able to customize the dimensions, materials or design on every product but don’t worry, you can still choose the standard or Pantone colors, prints, and sizes of captions, pictures, logo, etc.

The main benefit of ODM is that you will save a lot of time (in China, count around one month). Also, it is much cheaper than OEM.

However, it may be unpleasant to allow the supplier to take credit for the design of the products, but if you choose the right packaging manufacturer in China by requesting an audit report for example, then there is nothing to worry about.

Top 3 best packaging manufacturers in China: make green packaging in China your first choice!

• GPA Global (plastic packaging)

Based in Shenzen, GPA Global is a custom packaging manufacturer in China, focusing on the packaging for retail and display. The company is highly attractive because of its development of green packaging in China.Rather than using biodegradable and recycled plastics, they use natural materials like  sugarcane waste, molded pulp, wood free paper, and water-based glues.

They have also developed their own material called Greenblister, which is a mix of recycled (and recyclable) paperboard and plastic.

‘‘As a company built on sustainable values and methods, we promise not only a fantastic service but an eco-friendly end product.’’

Some of their clients are Louboutin, Johnnie Walker, JBL, Bose, etc.

• Yuto (paper packaging)

YUTO Packaging Technology Co, also based in Shenzen, is a leading provider of high-end brand packaging solutions in China. Specializing in consumer electronics, health, tobacco, cosmetics, and food, this packaging manufacturer in China provides carton and paper packaging respecting the environment.

YUTO is indeed advocating green printing and the low-carbon recycling economy:

‘‘YUTO Tech takes the “green, environmental protection, low carbon” printing, and packaging as the future direction of enterprise development.’’

In recent years, YUTO Tech has won several rewards such as the “Top 100 Chinese printing and packaging enterprises in 2016 and 2017”, “China Excellent Packaging Brand,” “National Printing Demonstration Enterprises”,…

• Asia Pulp and Paper Group (pulp and paper packaging)

APP, founded by a Chinese Indonesian, sells different types of packaging including bleached hardwood paper pulp, a full range of paper, tissue, packaging, stationery products from commodity-grade base paper, tissue and industrial paper to value-added writing and printing paper, coated paper and boards.

It is one of the world’s leading paper manufacturers.

The company has also set aims to become more environmentally-friendly through its Sustainability Roadmap Vision 2020 to promote green packaging in China. This roadmap involves requires their main raw material, wood fiber, to come from sustainable sources. To do that, they have implemented better practices such as Chain of Custody systems, High Conservation Value Forest (HCVF) assessments and protection, and Sustainable Forest Management certification.

In April 2014, they introduced the Forest protection and restoration commitment to support the forest conservation and restoration of rainforest in Indonesia.

‘‘APP is committed to protecting biological diversity, particularly with regards to native plant species, Sumatran tigers, elephants, orangutans, birds, and other animals.’’

Packaging design in China: How Daxue can help you

As a competitive market research agency in China, Daxue Consulting can help you creating your packaging for the Chinese market. Our team is dedicated to giving you the best understanding of Chinese consumers and to assist you in each step of your packaging design process.

First, Daxue Consulting performa customized social media listening plan to analyze comments on Chinese social media such as Xiaohongshu, Weibo, Wechat as well as shopping platforms in China like Taobao, Tmall, JD.com, etc. This social listening phase will help you identify the best consumer insights from your current or potential buyers.

Then, this first raw data needs to be confirmed, and Daxue Consulting has provenexpertise in online surveys and focuse groups in China. Our research team can conduct a questionnaire and use the data collected to determine purchasing habits as well as storage practices towards your competitors. This is at this point that focus groups in China can be particularly interesting. It will allow you to see the strengths and weaknesses of the packaging currently available in the country, in terms of aesthetics and practicality. For an even more reliable and realistic result, we recommend combining focus groups in China with shop along to spotlight spontaneous reactions by observing the participants packaging journey.

As the last step, Daxue’s team can conduct mystery e-shopping to test the ease of the shopping experience on your packaging design, from delivery to the intended usage to see how the packaging condition is evolving.

The national issue of over packaging in China

An ecological disaster that cannot be ignored anymore

One thing that may shock you when you arrive in China is the tons and tons of unnecessary packaging for certain products. This is what we can call ‘‘Over Packaging’’. It describes a product that is wrapped in several layers of plastic or paper, which are unnecessary or unwanted by the consumer. A common case in China is a small item wrapped in plastic, surrounded by an air cushion, placed in a small box and then placed in a bigger box for delivery.

This is not surprising considering that China has surpassed the United States and become the world’s leading market in terms of packaging. In 2022, China is expected to widen to 276 billion USD, making North America about three-quarters (approximately 78%) the size of China’s market by value.

However, despite the omnipresence of the trend of green packaging and zero waste in the West, China is a little behind on this subject, even if initiatives are taken. Over packaging in China is thus a major issue.

The environmental organization Greenpeace recently announced that less than 10% of packaging material in China gets recycled. The packaging industry in China is, therefore, a real scourge for the environment.

And there are several reasons for this. 

First of all, the development of e-commerce. With the boom of E-commerce in China, the amount of packaging used for the transport of goods has dramatically increased, causing a devastating effect on the environment. Last year, Chinese people received nearly 1.9 billion packages within 10 days of November 11. It means about 1.4 for every person in China!

In 2018, the Chinese received more and more parcels. In February 2019, consumers received more than 3 times as many packages as in February 2018.

Then, food delivery apps in China create tons of waste every day due to plastic containers, bags, and utensils that come with each order. Food delivery apps in China have an estimated 355 million users, meaning that a quarter of all Chinese people are ordering food from their phones. For example, there are more than 1.8 million food delivery orders placed every day in Beijing alone.

Finally, the Chinese food industry also contributes negatively to the environment, with the increase of packaging in fruits and other fresh produces. Here are common examples:

New green Chinese standards and initiatives against over packaging in China

At the end of 2018, the Chinese government introduced new ecological standards to promote the use of green packaging in China and recyclable materials. These new standards are in line with China’s 13th five-year plan where the government agreed to improve environmental management and protection in several sectors such as emission controls, clean energy, etc.

This new positioning against over packaging in China is supported by the initiatives of e-commerce giants. Recently, Alibaba has pledged to make logistics greener, opening green warehouses. These new warehouses package parcels with renewable materials. They also try to implement a recycling program and have developed biodegradable plastic bags and reusable paper boxes that use glue instead of wrapping tape.

Alibaba’s rival, JD.com, is also working against over packaging in China. They have set up a program where consumers can return delivery boxes free of charge for reuse, up to 10 times.

On the delivery apps side, the battle has also begun. The famous Ele.me app has created an environmental laboratory in Shanghai called RELAB. The latest initiative of this lab was the operation ‘‘No Chopsticks’’, where consumers could choose to say no to chopsticks sent with their order. It has saved 43 million pairs of chopsticks, as of November 2018.

New young Chinese start-ups are also fighting against over packaging in China. This is the case of XHG (Xiao Huang Gou), which offers money on Wechat to consumers who sort their waste according to the weight of garbage recycled through their smart bins.

Some tips for adapting your packaging while avoiding over packaging in China

• Adopt Chinese codes

As presented in this article, it is necessary to understand the preferences of Chinese consumers in terms of packaging. You can search the related products on Taobao and look for the different kinds of packaging used by competitors to understand better how does packaging look like in your category. You also need to find the delicate balance between your Chinese and Western name on the packaging.

• Choose the right material

Choose a material that matches the values of your brand and product. Today it is easy to opt for green packaging in China. We can take the example of the tea brand SQZ, which has chosen a material that is both practical and environmentally friendly in its production process in China in 2019.

The brand has chosen to package with a low impact on the environment because it is very light and contains 35%  chalk.

• Offer a “shareable” experience

One proof that the Chinese attach great importance to packaging is that they like to share their best finds on social networks. An excellent way to encourage this is to offer limited editions for Chinese festivities. This is what the foreign brands SK-II and Glam Glow have done during the 2019 Chinese New Year by offering beautiful packaging celebrating Chinese culture:

Need help creating your packaging in China? Contact us now to discuss your project. Our experienced and international team is dedicated to giving you the best advice and insights on your consumers in China and their packaging preferences in 2019.

Author: Steffi Noël

Make the new economic China Paradigm positive leverage for your business

This article Packaging design in China: how to attract Chinese consumers while packaging sustainably | Daxue Consulting is the first one to appear on Daxue Consulting - Market Research China.

To see more about luxury cars in China

The Bugatti Company, and most particularly, the company’s founder Ettore Bugatti are venerable fixtures in the world of automobile engineering. From the very beginning, Bugatti’s unique constructions and high aesthetic standards have lead the brand to be recognized as one of the most prestigious luxury brand, even beyond automotive market borders, of the world. The brand has been recently launched in China. Focus on its development after few years.

Focus on the Development and Market Condition of Bugatti in China

Bugatti officially started its selling in China at the car exhibition in Beijing, 2008. After the exhibition, it has released its first EB16.4 in China. The first purchased Bugatti car was owned by Mr. Cai from Xiamen, which led to great sensation at that time. This first car has been used only as collection, kept in the museum of Mr. Cai’s firm. Currently there are very few Bugatti cars in China. Most of them worth 25 to 38 million yuan, which are truly luxury cars. Bugatti has set its world’s first and only museum in China, which has never been done since Bugatti only sells custom made cars. Recent focus groups in China has shown that this is maybe because the giant consuming potential of Chinese luxury car market, which contains many billionaires who chase great quality and high price.

Bugatti’s Main Competitors in China: Rolls-Royce, Automobili Lamborghini, Bentley

Bugatti faces greatest threat from other world-renowned manufacturers of cars and SUVs, especially Rolls-Royce, Automobili Lamborghini and Bentley, which also own great popularity and reputation all over the world. Bugatti is now world famous and has its own market share in China high-end car consumers, but its competitors are also vey powerful and it seems that Bugatti is still striving hard to rival all these competitors.

Rolls-Royce is one of the most well-known brands in the world. Its name is one of its most valuable assets. It helps to open doors, it attracts talented people, it differentiates the brand and it is a reassurance of trust in its technical capability. Today, the brand means more than engineering excellence. It is a standard of quality across all its activities. The brand guides its actions and behaviors and the way it presents itself to the world as a leading-edge, international power-systems business.

Founded in 1963, Automobili Lamborghini is headquartered in Sant’Agata Bolognese, in Northeastern Italy. It manufactures some of the world’s most sought-after super sports cars. With the recent presentation of the best-in-class Aventador LP 700-4 at the Geneva Auto Show, Lamborghini has marked another milestone in the history of luxury super sports cars. With more than 120 dealerships worldwide, Automobili Lamborghini is building on a succession of dynamic and elegant super sports cars.

Bentley motors was founded by W.O. Bentley in 1919 when the first Bentley engine burst into life at new street mews, London. Then W.O’s company went from strength to strength through the 1920s, with an evolving series of acclaimed motor cars and a parade of racing triumphs to prove their outstanding performance. Located in Crewe, England since 1946 and owned since 1998 by Volkswagen AG, Bentley Motors is dedicated to making responsive and powerful Grand Tourers with the stamina to cross continents at pace, and drive in refined comfort and style.

Amy Wang, about Branding in China

Source : Forbes

This article Focus on Bugatti and Luxury Cars in China is the first one to appear on Daxue Consulting - Market Research China.

Focus on BVLGARI and its Path in China

In fact the BVLGARI jewelry as well as accessories has long been preferred by many celebrities in the world’s major awards ceremonies. BVLGARI is a collection of modern and classical qualities, both classical elegance and modern innovation. At the end of 2003, BVLGARI entered China. At the time, how to pass the cultural connotation of the brand to Chinese consumers is of great significance. In the spring of 2006, BVLGARI opened new stores in Guangzhou. This is for the first time BVLGARI entered the Guangzhou market, at the same time, the new store also became BVLGARI’s largest flagship store in China, allowing southern China’s high-end consumer to enjoy the charm of the top brand BVLGARI. Recent China Focus Groups have also considered the strategy of incorporating mainland china stores into a global sales system of BVLGARI to be judicious.

BVLGARI’s Main Competitors in China: Vhernier, Mikimoto, Chanel Fine Jewelry

BVLGARI faces biggest challenge directly from other famous luxury brands inItaly, especially from Vhernier, Chimento and Pomellato, those who are also popular jewelry brands inItaly. Under the recent wave of Italian luxury brands flowing into Chinese market, these three main competitors are still the most important rivals of Vhernier.

Founded in 1984, Vhernier seeks to provide stylish and handmade jewelry made of gold, diamonds and ebony. The main collections include heavy cocktail ring, geometry bracelets and pendants with main color to be deep purple and rose-colored, full of royal style.

Today, Mikimoto is the foremost producer of the finest quality cultured pearls and a world leader in the design of exceptional jewelry. The Mikimoto name is synonymous with superior quality at every stage, from the selection of finest materials to expert workmanship to our customer service commitment. Mikimoto is now a very popular and well-known luxury brand inChina.

Chanel Fine Jewelry creations are inspired by the daring expressed in Mademoiselle Chanel’s first jewelry collection in 1932, as well as the strong themes that symbolize the brand’s identity. Between 1988 and 2007, Lorenz Baumer designed collections of High Jewelry and Fine Jewelry for Chanel. Since then, the Mainson has developed its own Studio of Creation. From the first sketches inspired by the world of Gabrielle Chanel, to the detailed artistic rendering of a jewelry piece destined for the workshops. As its other products, Chanel Fine Jewelry leads its way in the Chinese market.

Edited by Amy Wang from Daxue consulting China.

Picture source: BVLGARI

This article China Focus on BVLGARI, Jewelry from France is the first one to appear on Daxue Consulting - Market Research China.

China focus on the new Adolfo Domínguez shop in Beijing

Adolfo Domínguez opened its first store in Beijing in 2010, which is also its fifth store in China. Adolfo Domínguez attended the opening and the fashion show  himself. Many Chinese government officials also attended the event. Adolfo Domínguez also plans to hold a fashion design show in Beijing every six month. These activities all demonstrated how important Domínguez believes it is to gain control of the immense Chinese market. Focus groups in China also show that Adolfo Domínguez is becoming more popular in Beijing and in China overall.

Adolfo Domínguez’s Main Competitors: Louis Vuitton, Ermenegildo Zegna, Gucci

Adolfo Domínguez faces the most competition from other world-famous brands in the fashion industry, especially Louis Vuitton, Ermenegildo Zegna and Gucci. Adolfo Domínguez is still young and needs more experience as well as time to enrich its brand and rival more established competitors.

When he was only sixteen years old, Louis Vuitton made a decision that not only changed his own life but the lives of his sons and future generations: he became a trunk-maker. In 1886 Georges Vuitton revolutionized luggage locks with an ingenious closing system that turned travel trunks into treasure chests. And at the 100^th anniversary of the brand, it asked six designers to create original pieces to celebrate the iconic canvas that was created over a century ago.

The Ermenegildo Zegna Group today is one of Italy’s most famous family owned enterprises. Over the last century the business gene and entrepreneurial spirit has been passed down through the generations, ensuring that the name Zegna remains synonymous with luxury. Growth has been possible through shrewd diversification of the company’s product offering, which now ranges from clothing to accessories, and strategies which have enabled the Ermenegildo Zegna brand to grow successfully throughout the world.

Founded in Florence in 1921, Gucci is one of the world’s leading luxury fashion brands. The brand designs, manufactures and distributes high-end products such as leather goods (handbags, small leather goods, and luggage), shoes, ready-to-wear, silks, timepieces and fine jewelry. Eye wear and fragrances are made and distributed under license by global leaders in these two sectors.

Daxue China consulting

Sources:

• Adolfo Dominguez
• New York Times
• Euromonitor International
• Market Research

Picture source: bing

This article China Focus on Adolfo Domínguez from Spain is the first one to appear on Daxue Consulting - Market Research China.

As the first cheese brand in the whole world, the most popular La Vache qui Rit was born in France, having a history of more than 90 years.

Now the company is all over the world, with recognition and preference of consumers from over 100 countries and regions: Globally, there are over 10 million “La Vache qui Rit” cheeses purchased every day, that is, over 115 cheeses every second on average. La Vache qui Rit has expanded all around the globe, but goes by different names in different countries such as “The Laughing Cow” in English-speaking countries, “Vessiolaia bourionka” in Russian-speaking areas, and it has already become a legendary brand. The laughing red cow, high-quality cheese, unique packaging, these all became well-recognized symbols of La Vache qui Rit in the hearts of consumers everywhere.

The Evolution of La Vache qui Rit

The Laughing Cow is almost always depicted wearing earrings that looked like boxes of cheese, red and joyful. Leon Bel trademarked his brand, calling it  “La Vache qui rit,” in France on April 16, 1921. This patent was the very first branded cheese product registered in France. Bel had made the original drawing for the laughing cow himself, after seeing a travelling meat wagon during World War I called “La Wachkyrie,” a play on the word for Valkyrie. In the initial design, the laughing cow was not laughing, was not red and did not wear earrings. In 1924, Benjamin Rabier, a famous illustrator, edited the drawing into something more similar to the company’s logo today.

Focus on La Vache qui Rit in China

Laughing Cow cheese is available in its original flavor, a light version with 7% fat, and an ultra-light version with 3% fat. In addition, flavored versions of the cheese (such as ham, gruyère, garlic, paprika, mushroom, bleu, hazelnut, pizza and onion) are also available in various markets worldwide. Bite-size cubes of Laughing Cow are flavored in various countries and are designed to be eaten with alcoholic drinks at parties; these cubes are marketed under Cheez & Fun in many European countries, and also Apéricube in France, Belgium and the Netherlands, Belcube in Japan and South Korea. They are produced in 24- or 48-cube boxes of one flavour or of a particular theme.

Current Position of La Vache qui Rit in China

Despite La Vache qui Rit’s global success, its has yet to penetrate the Chinese market . The only way Chinese customers can enjoy its delicious cheeses is  to either go to France or go to one of the few foreign goods shops in Beijing and Shanghai that  provide La Vache qui Rit products.

Unlike in Europe, cheese is not regularly consumed everyday in typical Chinese lifestyle. However, as it continues to rapidly expand, the Chinese market has become a part of the global market. La Vache qui Rit should consider its market strategy in China by developing recipes and adapting them to Chinese tastes if they hope to enter the Chinese market.

Daxue Consulting China & Focus Groups in China

Sources:

• La Vache qui Rit
• China Daily
• Los Angeles Times
• The Huffington Post

Picture source: wiki, La Vache qui Rit

This article Focus group: La Vache qui Rit in China is the first one to appear on Daxue Consulting - Market Research China.

New Oriental Education & Technology Group was established in Beijing on November 16, 1993. As a famous Chinese private educational institution, New Oriental Education & Technology Group has been listed on the New York stock exchange in the United States since 2006.

Why will New Oriental succeed?

First, it starts with the company’s management and staff. It has a hard-working and loyal team highlighted by members such as Qiang Wang, one of New Oriental’s co-founders. It also pays great attention to the talents of its employees as provides them with specialized training. The staff is very motivated compared to others in the same industry due to the company’s policies. For example, New Oriental pays its employees more than most other employees in the same industry. This keeps its staff loyal and happy. In addition, the company has formed an enterprise culture in which its employees are rewarded for their personal achievements. The company is also willing to adjust its management style if they see it is necessary.

Second, the company has a very broad market as more and more Chinese people are willing to pay for assistance in preparing for exams and getting ready to study abroad. The Company’s educational programs and services consist of language training and test preparation courses, primary and secondary school education, online education and post-secondary education. It also sells pre-paid online education cards primarily to distributors, who in turn sell them to students. The company distributes and sells books and other educational materials developed or licensed by it through its own distribution channels, which consist of its bookstores and websites, and also through third-party distributors. The Company also provides consulting services to students regarding overseas studies and related processes, such as visa applications. It charges each student a fee based on the scope of consulting services requested by the student. This broad product offering attracts a wide array of customers and provides them with a multitude of different ways to study.

Last, the company gains the support of the government. A key to conducting a successful business in China is to have good relations with the Chinese government. If the company has good relations with the government, it will often help the company prosper. If the company has poor relations with the government, it will receive no help and may even be shut down.

Due to these factors, New Oriental has a good chance to succeed.

Sources:

• Official website
• Bloomberg
• New Oriental Group
• Google Finance
• Financial analysis
• Focus Group china

Picture Source: New Oriental

This article Focus group: New Oriental in China is the first one to appear on Daxue Consulting - Market Research China.