Global and Multi-National Advertising

By Basil G. Englis | Go to book overview

9
Advertising in the People's Republic of China
Paul R. Prabhaker Illinois Institute of Technology Paul Sauer Canisius CollegeWestern advertising agencies and multinational corporations that are planning on entering the People's Republic of China market need to be fully aware of the unique traits of the Chinese economy. Understood properly, these traits can turn into marketing opportunities. If misunderstood, these very same traits can turn into fatal obstacles to competing in the Chinese market.Hence, before looking at all the mechanics of advertising a foreign product in China it is necessary to appreciate the uniqueness of the Chinese economy. A partial listing of the characteristics of the economy is as follows:
China's trade/GNP ratio is one of the lowest in the world.
However, imports have been increasing at a phenomenal rate, in the range of 20% to 50% per year. Import capacity, in terms of foreign exchange availability, is expected to stabilize at about 11% in the early part of the 1990's.
Energy related exports amount to 25% of foreign exchange earnings.
47% of China's Gross Domestic Product is from industry. To put this in the proper perspective, the corresponding figure for other developing nations is below 33%.
The Gini coefficient for China's is a very low 0.16. The average for all nations is 0.43. The Gini coefficient is a measure of the urban income inequality in a country.

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