China market entry

China s pharmaceutical market is growing at a very fast pace. The current data show that the total market is around US 20 billion, and it is the ninth largest pharmaceutical country in the world. The Chinese government maintains price control on imported drugs. With China s entry into the World Trade Organization (WTO), tariffs have been reduced from 20% to 6.5%. The projection is that the market size will reach US 60 billion by 2010, and China will be the world s largest market by 2020. 

All italicized entries in this section have targeted China market coverage. 

The market entry challenge. Despite the fantastic growth and opportunities, access to and positioning in the Chinese market is very difficult. The buyer s markets, the China Price, the preference for local suppliers, guanxi, all make it a tough place to carve out market share. 

Key words Supply Chain Configurations, Distribution Channels, Outbound Distribution, Market Entry Strategies, Alignment, China. 

Entry strategies for the individual geographies, however, need to be differentiated, since logistics, distribution, and market development largely depend on local conditions. In China, for example, the on-site business model is the key to seizing growth opportunities, as the cylinder business will be difficult to develop profitably due to the absence of a rental fee model and the dominance of local... 

The market share for disposable diapers in China is less than 1 %. However, with the rapid increase in its urban population, has been the establishment of a market for disposable diapers. Assuming that 5 % of China s 1.1 billion population is represented by children under three years of age, the consumption of disposable diapers will be 10 billion even if the market share is 10 %. This is equivalent to the consumption of aU the Asian countries combined. The major disposable diaper producers in the world are paying serious attention to this huge market and are planning active entry into it. 

When China s dedicated exporters broke into mass markets, they enjoyed an edge over rivals because of their low production costs. A good example is the US 88 million Guangzhou-based Pearl River Piano, which established one of the world s largest piano manufacturing facilities in 1992. From its earliest days, as the company established its reputation as a reliable piano supplier in the local market, it also searched out an entry into the US market. By 1999, the company had determined that... 

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