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China¡¯s industrial sectors offer very little transparency. Conducting market analysis for a feasibility study presents foreign companies, and even Chinese companies, with a challenging and complex task.
In order to obtain reliable market data several different paths need to be taken. Industry specialists should be consulted and interviews with an industry's insiders need to be conducted. All data collected needs to be verified requiring multiple interviews and data base researching.
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| Although each study is designed for the specific needs of a client a typical feasibility study would include the following components: |
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Determination of the size of the market. The data collected should show the current market value as well as trend data to demonstrate growth or decline. |
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Current competitive climate. The number, size, capabilities and market share and pricing of competitive products or service providers shall be evaluated and provided to the client to determine their viability to compete in the China market. |
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Current and pending government regulations shall be reviewed to determine if they present any barriers to market entry and sustained market participation. |
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Other information required by a client for a conclusion on market entry. |
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| These first three elements are essential in determining whether our clients should make their market entry. Often times it is best to not enter if the research does not prove a particular product or service to have a viable opportunity. If the research does reveal a viable opportunity a marketing and sales strategy should be designed prior to entry. |
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