Issues with Market Research In China

Issues with Market Research in China

Part I – General Overview of the Issues of Market Research in China

a.   General Statement

China as a nation has embarked its wealth and resources on a portfolio of economic development and trajectory reforms. Setting up local initiatives and establishing global economic ties define potential returns and the much desired financial liquidity. On the basis of the estimate released by the International Monetary Fund on April 2012, growth in emerging market economies are expected to reflect an impressive margin of two to three percent as compared with economic performance of developed countries for the same period. Growth in emerging market economies correspond to the desire of investors for higher corporate profits. The study on the importance of emerging markets provides insights on opportunities and threats that are present in them. When investors receive sound market information from research, business decisions reflect reasonable judgment that is indicative of success.

MNEs and investors utilize Market Research in China to manage risks associated with introducing a new business line or offering new products and services. Through Market Research, investors can easily assess the profitability of a certain product line on a specific market. However, there are a number issues faced by Market Researchers in China that made it difficult to conduct empirical market studies. These issues make Market Research produce questionable or inaccurate results that most of the time leads to faulty decisions.

b.   Presentation of Facts

Through the years, China has evolved from a self-sustaining and closed market into one of the biggest players in international trade. According to research, China has been among the world’s fastest growing economy with GDP growth averaging nearly 10% annually from 2001 to 2010. China’s large population, with an estimate of 1.3 billion in 2014 and the country’s increasing international influence and recognition are factors being cited for its tremendous economic growth. China’s high productivity and low labor costs also play an important role for progress making the country a global leader in production and manufacturing.

c.   Guidance and Recommendation

Corporate decision makers are keen at the slightest data from any Market Research activity. Issues of concern have to be immediately addressed as a way to safeguard corporate assets and other valuable resources. Relying on information from previous research may prove risky as data sets are constantly influenced by factors such as trend and innovation. Extra care is to be exercised at all times in order to protect the integrity of the research outcome and come out with valid results. Good communication can lead to lasting partnerships that is responsible for building bigger networks and partnerships. One basic consideration is the principle of substance of Market Research services over form. Relevant and valid data supplied to Market Research buyers allow investors to form viable economic decisions that contribute to strengthen the country’s economic structure. On the other hand, cultural issues can be addressed through good working relationships with Chinese natives. Help by the natives can be translated to assistance in the conduct of research especially with the delivery of information and use of effective medium of communication. Additionally, tie ups with local government agencies and educational institutions would help facilitate the effective conduct of research in the areas of advice, technical assistance, and security. Due to the lack of interest by some Chinese natives in answering questions covered by research, it would be effective to apply data gathering methods that complement with their reluctance in participating with such research effort like shortening interview time and making easy questions.

Next: Issues with Conducting Market Research in China