According to KPMG's research, after the market and competitive environment are clear, manufacturing companies seeking international development need to carefully plan their product portfolios in overseas markets, establish effective marketing strategies, and formulate compliant channel plans according to the market needs and consumption habits of different countries and regions. In this process, both B2B-facing and B2C-facing manufacturing companies face different challenges, as well as different requirements for branding and channel layout. To this end, KPMG has conducted in-depth discussions on core elements such as product optimization and channel strategy, providing valuable insights and suggestions for the international development of enterprises.
Insight into customer needs and enhance product competitiveness
KPMG emphasises that insight into the differentiated needs of customers in different markets, strengthening product competitiveness and formulating attractive pricing strategies based on customer needs are the keys to success in overseas markets. Overseas enterprises should conduct detailed classification and analysis of local consumers, focus on the main target groups, clarify the customer journey, usage scenarios, needs and pain points of the target customers, and understand their evaluation of competing products and unmet needs.
In addition, companies need to look at their existing product portfolio to determine the most appropriate product or make minor adjustments to meet local market needs. Based on local development, focusing on long-term product research and development planning, and matching with brand and price strategy, it is an important foundation for enterprises to successfully "go global".
Differences in the challenges of B2B vs. B2C businesses
KPMG's analysis points out that in the process of expanding overseas markets, B2B companies have relatively little challenge in terms of overseas customer base, mainly because customer needs in the B2B market are more standardized and universal. In contrast, B2C companies face more complex challenges that require large-scale market research. These surveys include questionnaires, focus group interviews, one-on-one in-depth interviews, etc., to help companies better adapt to their target markets by accurately understanding the needs and preferences of consumers.
Figure: How Can China's Manufacturing Industry Better Cope with the Challenges of Going Global
When conducting overseas market research, if you can get the assistance of local partners, it will greatly improve the efficiency and quality of research. For example, KPMG helped a home appliance manufacturing company enter the European market, leveraging the leading role of online channels. By leveraging the "small B channel" on the basis of the mainstream market, companies can get closer to the end consumer, which has become a core strategy to improve performance and consolidate market leadership in the short term.
In-depth study of market differentiation and optimization of channel layout
KPMG's in-depth study of the "Race to Match" focuses on the following four key areas to help companies optimise their channel layout:
1. Channel richness: Through the understanding of the diversity of end customers, a multi-level channel model is established in different regions to cover different levels of consumer groups.
2. Channel terminal reach: By optimizing the management of "small B channels", expand channel coverage and reach, so as to improve market penetration.
3. Channel incentive program: Design a reasonable incentive plan to stimulate the enthusiasm and willingness of "small B channels" to promote long-term cooperation and win-win results.
4. Channel density and "small B channel" penetration: optimize channel strategy, control channel coverage, ensure the profit of channel providers, and improve the overall efficiency of channels.
Through these measures, enterprises can strengthen brand building and reach C-end consumers more accurately, thereby enhancing market competitiveness and brand influence.
Long-term development and branding
KPMG emphasises that in order to achieve long-term market development goals, manufacturing companies must have a deep understanding of the potential opportunities in the local market, and comprehensively analyze the needs and decision-making thinking of end users. At the same time, companies need to carefully select the right product mix and develop a brand and product communication strategy that meets the needs of the market to stand out from the fierce competition in the international market. By continuously optimizing product and channel strategies, the company can achieve steady international development and consolidate its global market position.
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