Introduction
Beauty Sculpt for You offers customers an assortment of beautifying physiotherapy procedures on a specially designed device. These procedures stimulate the natural blood and lymph flow, activate fat-burning processes in cells and provide painless body shaping without surgical operations. The specific frequency of the ultrasound cavitation allows Beauty Sculpt for You to act on deep subcutaneous structures, restoring them and stimulating collagen synthesis. The technique gives an amazing rejuvenating result after the very first procedure. This paper elaborates on the possibilities of product expansion in the Chinese market, as well as addresses concerns and optimism regarding the issue.
Target Location Proposal
After analyzing the desires and characteristics of consumers, consumer behavior patterns, as well as environmental factors, the company must select the target market on which it will focus and for which it will develop an appropriate strategy. Accordingly, a target market is the point of application of marketing, an attractive area of the market in which the company focuses its activities.
Any marketing strategy consists of two components. First refers to choosing the target market of the organization – for Beauty Sculpt for You, China was chosen as the target market. The second component consists of creating and maintaining a unique proposition that meets the needs of the market for this specific product – such as the one created for Beauty Sculpt for You.
Economic Opportunities of the Chinese Market
The economy of China has constantly been growing over the past thirty years. China ranks second in the world in terms of nominal GDP, with only the United States being the first. In terms of population, China confidently ranks first in the world. In this regard, the development of the domestic market, the multiplication of consumption income, and the development of platforms and ecosystems are important factors in the growth of the Chinese economy. However, it would be unwise to base the marketing strategy only on the GDP rates. To properly evaluate the possibilities the Chinese market offers, further analysis is strongly required.
Investment Possibilities
Investments, including foreign ones, play an important role in any economic system, being the driving force behind socio-economic development and the guarantee of the effective functioning of any economy. Foreign direct investments (FDI) refer to the investments made by foreign investors that give them the right to control and actively participate in the management of an enterprise on the territory of another state. Seeing as China has quite high rates of FDI, it makes the country a good starting point for Beauty Sculpt for You’s market expansion. Qi and Homer (2018) supply that “a collectivism cultural fit motivates Chinese investors to secure a high-equity entry scale in foreign firms” (p. 308).
Concerns for Beauty Sculpt for You
Before setting the goal of product expansion in the Chinese market, it is worth considering a number of fundamental points that might significantly affect the promotion. First, one should consider the existing legal standards and restrictions as compared to the USA standards. In fact, there are quite a few of them in China, seeing as the Communist party imposes limitations on trading with foreign companies, which can impair product launches. In addition, there is strict censorship and control of Internet content, so it is impossible to promote a product both online and offline without meeting certain requirements. The U.S. market does not have such legal concerns; it is important to conduct proper research on Chinese trade legislation, as the company is based in California and has no context of the USA-China foreign trade differences.
Optimism for Beauty Sculpt for You
Despite the global economic slowdown, the Chinese market for cosmetic products has developed much faster than the world average rates. As records show, the Chinese beauty industry revenue reached 340 billion yuan in 2020 (“Retail sales value of cosmetics by wholesale and retail companies in China from 2010 to 2020 (in billion yuan),” 2021). It is the world’s second-largest and as hospitable as it is specific. Moreover, China has a large middle-income population that is growing at the fastest growth rate in the world. Additionally, there is a huge market sector in small towns and villages, and the desire of the Chinese for a better life will certainly increase consumption in terms of quality products, technology and services on a global scale.
Conclusion
The attractiveness of the Chinese market for business is undeniable because the potential audience consists of more than 1 billion people. Cultural features of the Chinese economy require a separate strategy and the obligatory involvement of local partners; nevertheless, the prospects outweigh the inevitable costs of marketing there. Thus, it is wise to choose China as a target market for product expansion, seeing as it provides the best economic opportunities. However, before launching the product on the Chinese market, one needs to understand what cultural drivers are at the heart of the country’s business life. Thus, it is important to understand that entering the Chinese market calls for serious preparation and deep knowledge.
References
Bajpai, P. (2021). The fastest growing trillion-dollar economies in 2021. Nasdaq.
Hawal, B. M. (2021). The world’s most populated countries. My Funky Travel.
Qiu, T., & Homer, P. M. (2018). Cultural fit and the choice of international market entry scale of Chinese firms. Journal of Global Marketing, 31(5), 308–323.
WPR. (2021). GDP ranking by country 2021. World Population Review.