Case Study Of Changhong Company Entering U.S. CE Market

Essay Extract:With the domestic consumer market becoming saturated and overproduced, the vast international market is weighting more and more important for Chinese enterprises. For lacking of experiences in international marketing, Chinese enterprises should face the critical problems involving with to know the market, to enter the market and to avoid market risks to the most extent.American market is the core of international market. American market is the biggest consumer commodities market in the world, which annual commodities importation value is more than 1100 billion U.S. dollar; To some extent, American market is more free for everybody than other countries in the world, which average tariff level is about 3.8% comparing with 5% of else Developed countries and 14% of Developing countries; American market is various as its population; The laws and regulations regarding to the market are systematic and its Jurisdiction Process and Police is very famous for their enforcements; American market requires high quality and its product warranty and after-sale service is strict and American-styled; The consumers of this market is more dispassionate and experienced than consumers in else countries or Chinese. In recent years, the commodities exported to U.S. from China are shifted from primary materials to finished industries goods and electric or electronic products. Especially, the consumer electronics goods is sharing more and more percentage in total value exported to America and rocket up continually. In the meantime, many tough issues are arising, such as antidumping, intellectual property cases, patent claim, and gigantic account receivable, overseas reject and waste recycling etc. The present status of American consumer market probably reflects the future of Chinese consumer electronics market. The distributor system, logistics arrangement and after-sale warranty would be the important issues which the Chinese enterprise had better to reconsider. To reconsider these issues and to learn the American market would be helpful to enhance the potential quality of Chinese quality. In the aspect of exploring the American Consumer Electronics market, the Japanese and Korean firms have walked long way in front of us. The Japanese consumer electronics firms enter U.S. market in 80's and Korean in 90's. Some firms carried out the strategies in different phases to grasp the market chances and have had succeed eventually. Their brands have become the famous brands to American consumers. Their experience could give our consumer electronics enterprises some hints in market entry and marketing.The highlight of this essay is that it is based on the case of Changhong Co. in exploring American consumer electronics market. After analysis, comparing with the Japanese and Korean firms' strategies, the final suggestion should be entry into the market with advantages of price and quality, OEM and owned brand co-existing, improve the product and company image, different channels co-existing, local assembly to avoid trade barriers. In general, a market entry mode is the key point of this essay. More and more foreign scholar put their eyes on Chinese market entry because of the rapid development of this market. But the trend to research China is not valuable for our Chinese enterprises to explore overseas market. We hope this essay would be helpful to meet their needs.