Case Study | Market Entry to China for Consumer Service Company

Functional Topic

Market Entry

Project Industry

Consumer Service

Needed Support

1 Top-tier Strategy
Consultant

Duration

3 Months

The Challenge

The client, a leading consumer service company, was preparing a market entry in China as part of their international expansion strategy. The company had succeeded in other regions, but China posed unique challenges due to its cultural, regulatory, and competitive landscape. The goal was to ensure that the entry strategy would fit the Chinese market and be scalable for future expansions into other regions.

The primary challenge was understanding consumer behavior, regulatory requirements, and competition. The client needed a well-crafted market entry strategy, tailored to the specific demands of the local consumer service industry, and wanted to execute the plan within a tight three-month timeframe.

Role of Consultport

The client engaged with Consultport to provide a top-tier strategy consultant with extensive experience in market entry strategy and specific knowledge of the Chinese market. Consultport provided three qualified profiles within 2 days, and the client chose a consultant with 10 years of experience in a top-tier consultancy, who has previously managed 6 international market entry projects in the consumer services industry.

The consultant needed to conduct a deep market analysis, evaluate entry options, and craft a detailed, actionable strategy. The consultant worked closely with the client’s internal teams, to better align the market entry strategy with the company’s long-term growth objectives.

The Approach

The project followed a structured approach, broken down into three phases.

Phase 1: Market Analysis

The consultant began by conducting in-depth research on the Chinese consumer service market. This involved evaluating market trends, understanding key competitors, and analyzing local consumer behavior. The goal was to identify potential gaps and opportunities in the market that aligned with the client’s core offerings.

Phase 2: Regulatory and Legal Assessment

To assess the legal requirements for foreign companies entering China, the consultant analyzed licensing needs, compliance issues, and potential barriers to entry. With regular updates and meetings, the consultant provided the client with a clear understanding of the regulatory landscape, ensuring that the expansion plan met all necessary legal requirements.

Phase 3: Strategy Development and Workshops

After gathering sufficient data, the consultant developed three market entry options for the client. These options were presented in workshops, allowing the client to discuss and refine the approach. All the options included a specific analysis of market positioning, pricing strategies, and distribution channels tailored to the local Chinese consumer base.

The final step was to develop a detailed expansion roadmap, including timelines, resource allocation, and key performance indicators to measure success. This roadmap focused on the immediate results of market share, distribution channels, and product offering, with outlined strategies for future growth and scalability.

The Results

By the end of the project, the client had a full understanding of the local market and a comprehensive market entry action plan including considerations on partnerships, customer acquisition, and marketing strategies to be implemented.

Joint Ventures

The consultant recommended forming a joint venture with a leading Chinese consumer service company, proposing three possible partners. This approach would reduce risks associated with entering a new market while leveraging local expertise and brand recognition.

Regulatory Compliance

The consultant’s in-depth understanding of local regulations allowed the client to obtain all necessary licenses and operational clearances in less than six weeks, significantly reducing the expected timeline. This rapid compliance enabled the company to start operations without delays or legal risks.

Customer Acquisition

In addition to identifying growth opportunities, the consultants delivered a concrete action plan that outlined the next steps for implementation. This plan included clear timelines, resource allocations, and prioritization of initiatives, making it easy for the client to move from strategy to execution. The actionable roadmap ensured that the client could pursue new growth opportunities with a structured, well-coordinated approach, reducing potential delays or roadblocks in the process.

Operational Efficiency

By engaging in strategic partnerships with local technology and logistics providers, the client can leverage existing infrastructure rather than building their own, leading to faster and more cost-effective entry. The estimated impact of this option was a 20% reduction in projected market entry expenses, by avoiding the need to develop in-house infrastructure.