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Marketing Analysis

Marketing Analysis
Integrating appropriate marketing methods with distribution channels to reach customers is critical in China. Channel marketing strategy consists of developing go-to-market plans, educating channel marketers or middlemen about products or services, and motivating the members of the marketing channel to promote products and services. Major marketing channel strategy used in China is as follows:

﹡Traditional Channel
In recent years, sale achievements of large-scaled major enterprises drop in general, while their market share rise, so as to acquire a stable market position (like JIANTE, JOINCARE,). Due to the implementation of Temporary Rules of Advertising Censor for Health Food, the advertising market has become more difficult for some single-product enterprises which depend on advertising propaganda, and advertising space has been cut down a great deal. The marketing of dietary supplements shows a tendency of rising.

﹡ Direct Sale Enterprises
The regulation of direct sales has been forbidden by different departments after its introduction, and the upper limitation 30% for recompense also brings difficulties for reformation of the enterprise. Except for Avon, all the direct sales companies are in a logjam waiting for authorisation certificate, and the sales have reduced considerably. However, the potential of direct sale is high, and large numbers of enterprises have applied for a direct sale certificate.

﹡ Instructing Sale Enterprises
The development of instructing sale (conference marketing) is at a turning point. Beijing published firstly the rules restricting to hold product education and instructing, and local governments have consequently strengthened supervision of conference marketing. One small company is facing the threat of bankruptcy and being swallowed up by large company, and the conference or health food market has reduced overall and many professional managers have begun to leave large companies.

﹡ Chain Company
The Chain store channel is the most competitive among all kinds of mature management patterns in China. According to the experience of international market and the special situation of China, Chain management must be one of major marketing channels for health care products in China. But at the present, it’s very hard for the development of chain stores of health care products, and many enterprises are closing one by one.

﹡ E-Business
The development of E-Business is limited by the development of the whole Healthcare market and the quality of goods. Although it hasn’t taken shape, we should see the large force of this technological reform to the business. Some farseeing company which represented by EYSKJ increased their investment in E-Business again.

﹡ Other marketing channels Patterns such as direct sale on TV, direct sale by databases of magazines etc. also provide a big developing potential, but are limitated by technology, logistics, accounting etc., and have a long way to go for development.