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How MNCs Can Position Their Brands in China


Many analysts argue that Chinese consumers are extremely price-sensitive and only want to buy the cheapest products available. This has led to price cutting in the China market by many multinationals. But MNCs cannot compete on price alone, and going cheap will erode long-term profitability and brand image. In this thought leader position for Forbes, CMR MD Shaun Rein suggests multinationals consider the following points and position themselves as premium to domestic Chinese companies:

*Chinese consumers want safety too. Recent CMR interviews show consumers trust foreign brands more than domestic ones because MNCs are perceived as less likely to cut corners and shave costs by adding unsafe if cheap ingredients

*Chinese consumers are fed up in dealing with poor service and increasingly prioritize in-store and aftersales service when choosing a brand or store. MNCs like B&Q are recognized as providing superior service and trustworthy products

*The important Chinese youth market is increasingly interested in aspirational buys, often buying on credit to get products just beyond their reach in order to showcase status and enjoy life in the present

Read how brands like BMW, B&Q, and Best Buy are benefiting from their premium positioning in the rest of this article in Forbes

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