Challenges And Opportunities For Chemist Warehouse In Chinese Retail Market Essay.

The main aim of this report is to identify the challenges and opportunity for Chemist warehouse to deal in the Chinese retail market.

This report evaluated that there are different challenges faced by the chemist warehouse in terms of expanding their business into Chinese retail markets such as communications challenge, distribution, and logistics challenge, product and pricing challenge, segmentation challenge, cultural challenge.

It also illustrated that there are a different opportunity for chemist warehouse to deal in the retail industry of China such as cost-effective, more business opportunities and advertise online. This report also exhibited that global marketing is a key international marketing strategy for influencing the customers towards the chemist warehouse.

It also demonstrated different digital marketing strategies that are suitable for the chemist warehouse to deal in the Chinese retail industry such as social media, search engine optimization, and email marketing.

Challenges faced by Chemist Warehouse in the Chinese retail market

Marketing communication involves the advertising, positioning, personal sales management, sales promotion, and public relation that is challenging for business while dealing in the international market. Although Chinese consumers are not easily influenced by advertising, advertising is absolutely effective for generating brand awareness (Papadopoulos, & Heslop, 2014).  Furthermore, Chinese shoppers read in detail about the package information when making shopping. Thus, Chemist Warehouse can face communication challenges in terms of using internet technology in China.

Chemist warehouse can face challenges due to expensive to get their products in the mass market of China. Moreover, the transportation and logistics sector of the country is only developing. There is a large number of warehouses in the nation that are still poorly equipped with badly designed such as automation, segregation and climate control (Hakansson, 2015).  There are a limited amount of major department and retail chains in different cities that face chaotic shelves and out of date operating activities. This could be challenging for chemist warehouse in terms of dealing in China.

In China, the winning consumer product corporations are literally forced to regularly and consistently enhance both the marketing and products technique to stay feasible. In addition, product positioning, and initiating cutting-edge product is beneficial for chemist warehouse to develop their brand image. Furthermore, it can face the challenges to deal with the new strategies that are high in the trend of Chinese market such as stretching premium brand is vertically to arrive at the mass market, adjusting the formulations of product and packaging, and altering the manufacturing procedures (De Mooij, 2015). Hence, the price could be set at the lower level for segmenting the price sensitive.

Chemist warehouse can face the segmenting challenge in terms of addressing suitable geographic area in China. Following are different geographical areas that could be suitable for getting the opportunity in terms of attainment of competitive benefits, culture, mission and resources constraints:

• Southeast (Shanghai, Jiangsu, Fujian, Zhejiang, and Guangdong)
• Bohai (Beijing, Shandong, Hebei, and Tianjin)
• Central (Henan, Anhui, Hunan, Jiangxi, and Hubei)
• Northeast (Heilongjiang, Jilin, Liaoning)
• Southwest (Guizhou, Yunnan, Sichuan, Guangxi, Hainan, and Chongqing)
• Northwest (Shaanxi, Shanxi, Ningxia, Neimenggu, Xinjiang, Qinghai, and Gansu)

China is one of the emerging nations with hardworking, intelligent people, the habit of self- reliance, and strong leadership. China demonstrates traditions, political with business culture and defines the distinctiveness with unique features (Demangeot, Broderick, & Craig, 2015).  Moreover, communism, the Republic of China, Confucianism, Buddhism, and the Dynasties have all impact the activities, behavior, and belief of Chinese people and organization.    

Marketing opportunities exist in China hence savvy marketers should address the profitable niches in different segments by comprehending the different cultural before pushing products and services.

Cost-effective

Chemist warehouse can get the opportunity to decline their cost while dealing in China market due to using internet technology. Since sending an email to China as compared to direct communication could be expensive.

Information communication technology has made it easier for a corporation to use the automated process in business and permitting the customer to make contact with them in 24*7 hours. It indicates that a corporation could be opened anytime, anywhere and permitting the customers for making the buying decision from different nations. It could make easier and more convenient to the business process of chemist warehouse (Cavusgil, Knight, Riesenberger, Rammal, & Rose, 2014). 

Opportunities for Chemist Warehouse in the retail industry of China

The internet makes competent to chemist warehouse to focus on advertisement to influence the target users as compared to traditional advertising. Moreover, it can use different platforms such as Google and Facebook to consider those people who are prospecting to purchase whatever it is company sell. Thus, advertising through online source could be beneficial for attracting more customers. 

(Sources: Cavusgil, Knight, Riesenberger, Rammal, & Rose, 2014). 

The above chart depicts that sales through the e-commerce channel are increasing in China as compared to the US and other nations. Furthermore, uses of e-commerce are increasing from previous years that could provide an opportunity to chemist warehouse to deal in the Chinese retail market.

International marketing strategy supports the organization to effectively launch their products and services at global level. Moreover, it is evaluated that the international marketing strategy could also lead the organization to obtain higher competitive benefits in the least time and cost. Chemist Warehouse should imply Global marketing strategy to get benefits from China. Further, this strategy is associated with multinational operations approach. Through this strategy, the organization will sell their goods and services at the global level. It also permits the organization to deliver their goods and services in the same way to everyone (Cavusgil, Knight, Riesenberger, Rammal, & Rose, 2014). In this, consumers compare the quality and method by which the products are delivered and the same methods could attract a huge amount of consumers towards Chemist Warehouse. This strategy would also facilitate Chemist Warehouse to make their unique image in the retail organization and sustain their position for the long-term. Through this strategy, the organization should offer the quality products and services to their specified consumers for making a reliable relationship with them. At the same time, it is also observed that the quality products and services could lead to increase higher consumer’s satisfaction level.            

Digital marketing strategy could be imperative for increasing awareness of goods and services in the least time and cost. The digital marketing delivers could lead the organization to measure activities and make a reliable decision in the context of the current matter. The digital marketing is less costly as compared to traditional marketing. It also facilitates the organization to use different digital marketing tools and measure new marketing campaign as it could be more effective than traditional marketers (Brady, 2014).  There are certain digital marketing activities that should be used by Chemist Warehouse and make their unique image in the retail industry. These activities are discussed as below:          

Email marketing is a method that is effective for the business as it makes a connection between the organization and consumers. Through this method, the organization could invite the consumers to receive their newsletters (Tuten and Solomon, 2017). This tools also make facilities the organization to sell their goods and services in limited time and cost.  Further, the organization should also remember that their message should be reliable and accurate. It could be imperative for the accomplishment of the organizational task in limited time and cost (Alon, 2014). Moreover, it is also analyzed that email marketing method is effective for collecting consumer’s insight towards the products and services that would be effective for increasing the demand for goods and services. This method could lead the organization to improve their issues in limited time due to collecting a feasible solution to their research participants.   

Digital marketing strategies suitable for Chemist Warehouse in China

Social media is another significant digital marketing activity that should be practiced by the organization to increase the awareness of goods and services. Through this strategy, the organization would be capable to directly communicating with a large number of consumers and collect their opinion and views towards products and services. It could also be imperative for making a unique image in the consumer's mind (Tandoc and Thomas, 2015). Social media is a tool that supports to meet the aim and objectives of the organization in a limited time. For applying this digital activity in the business process, the organization should consider many sources of social networks like Pinterest, Facebook, and Twitter, and Instagram (Yasmin, Tasneem, and Fatema, 2015).  It could be effective for the accomplishment of the organizational task in limited time and cost. From implying these sources, the organization should implement such sources and attain the aim and objectives of organizational issues in the least time. It could support to increase understanding of brand among the consumers of China to obtain reliable outcome (Zilincan, 2015).  Apart from this, it is analyzed that the social media is an imperative tool and technique that facilitates the organization to change the behavior of consumers in the least time that could be imperative for increasing sale of the organization. Through the application of social marketing, the organization could be capable to increase the awareness of goods and services to get higher competitive benefits. Social media tool is a method that is imperative for conducting many activities as it is associated with the branding labeling, labeling, brand position, promotion, and price (Yu, Park, and Yip, BrightEdge Technologies Inc, 2014).                     

Search engine optimization and marketing is a tool that is practiced for improving the ranking of organization on online sources. Further, this tool supports Chemist Warehouse to increase the traffic of consumers on websites and get a reliable outcome. It can also be analyzed that this digital activity is more important as compared to another method due to increasing convince to attract a huge amount of consumers in limited time and cost. Through, search engine marketing tool, the company would select the keywords that are used by most of the consumers and make a reliable decision in the context of the organization. It is also evaluated that the organization would be capable to attract the bulk of consumers towards the products and services of the organization (Zahran, Al-Nuaim, Rutter, and Benyon, 2014).

References

Alon, I. (2014). The internationalization of US franchising systems. UK: Routledge.

Brady, D. L. (2014). Essentials of international marketing. UK: Routledge.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. USA: Pearson Australia.

De Mooij, M. (2015). Cross-cultural research in international marketing: clearing up some of the confusion. International Marketing Review, 32(6), 646-662.

Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces: New territory for international marketing and consumer research. International Marketing Review, 32(2), 118-140.

Hakansson, H. (2015). Industrial Technological Development (Routledge Revivals): A Network Approach. UK: Routledge.

Hoppner, J. J., & Griffith, D. A. (2015). Looking back to move forward: a review of the evolution of research in international marketing channels. Journal of Retailing, 91(4), 610-626.

Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. UK: Routledge.

Tandoc Jr, E.C., and Thomas, R.J., (2015). The ethics of web analytics: Implications of using audience metrics in news construction. Digital Journalism, 3(2), 243-258.

Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.

Yasmin, A., Tasneem, S. and Fatema, K., (2015). The effectiveness of digital marketing in the challenging age: An empirical study. International Journal of Management Science and Business Administration, 1(5), pp.69-80.

Yu, J., Park, L.S. and Yip, R., BrightEdge Technologies Inc, (2014). Correlating web page visits and conversions with external references. U.S. Patent 8,671,089.

Zahran, D.I., Al-Nuaim, H.A., Rutter, M.J. and Benyon, D., 2014. A comparative approach to web evaluation and website evaluation methods. International Journal of Public Information Systems, 10(1).

Zilincan, J., 2015. Search engine optimization. In CBU International Conference Proceedings... (Vol. 3, p. 506). Central Bohemia University.