Have a minority stake on a market place does us excites notA single value is in the Green UnibailRodamcoOnly 28 consider the desirable and realisticOutside Hexagon the offer is very eclecticAfter the triumph of the acquisitions effect of leverage LBO in 2007 until July at least the year 2008 will see take off of the actors in the distressed Flipping special situations the restructuring or depreciated debt in any case have the rating in capShell published yesterday a net profit of 27The autonomy of museums grew dramaticallyI do not think a real crisis of liquidity042 euros against a more modest tax of 9Some are paying others everything depends on the contractForget Beijing and Shanghai! You focus on Fuzhou, Anshan or Hefei! Hundreds of Chinese cities, hitherto neglected by most multinationals, embody the Chinese market of the future, ensure the analysts of the Institute for Business Value of IBM, who come to close a very comprehensive study of 180 foreign businesses in China. "To succeed in the country, multinational companies must develop new strategies, more focused on the mass market and departing from the major cities where competition is raging and the market matures," believe researchers Alan Beebee and Louie Cheng.
Ecartant of their research, "Prosperous China", composed of twenty-five largest cities of the country already highly covered by the large local and foreign groups, and the "rural China", where 947 million people live in villages or small poor towns, the two economists focus on opportunities in 305 emerging so-called cities affi-singing a rapid growth. They are already home to 234 million people, or 40 of the urban population and generate 43 of the gross domestic product and a growing share of the domestic demand for electronic products, automotive, or retail. More than 80 of these emerging cities and display average annual income per household located between 3,000 and 6,000 dollars.
"To develop on the mass market, foreign companies will have to adjust their economic model and their modus operandi," said the study. Including transform their sales channels and their traditional distribution networks. 42 Of the sales of foreign companies in China are still three levels of distributors or more. Only 10 of multinational companies are capable of understanding their performance at the level of each store. Most have that national or regional data for any sharp marketing strategy.
These high structural costs are allowed in the emerging areas where the margins are traditionally lower, warns IBM, which proposes to develop sales online, direct sales or openings of small stores directly held by the mark, as what are Nokia and Motorola.
Less sophisticated customer
To impose in areas traditionally dominated by local producers, foreign firms will also have to boost their spending for research and development and offer products cheap but quality, adapted to a clientele less sophisticated than on the East Coast. Manufacturers must leave the only segment of products of high added value accessible to only privileged classes of the country, consider the authors of the study. To keep their costs, all will have to be a better network of local suppliers.
Chinese mass market will open, finally, to the companies with the challenge of human resources. According to McKinsey, only 10 of the 4 million young people leaving every year universities in the country are really able to work for multinationals. Disabled by this shortage, the multinationals will have to develop their internal training courses and to strengthen their partnerships with the campus and the great schools of the country.
"All of these innovations and new economic models should allow foreign companies to take advantage of mass Chinese market but also to give China a new weight in their overall strategy," conclude the analysts. Volumes and saving strategies in the country should allow term better penetration of all the other emerging countries.
