As average wages have increased and consumers possess more disposable income and are willing to spend their hard-earned wages on modern products, more small and medium sized companies from around the world have entered the Chinese market importing products ranging from French cosmetics to German paint, from Ukrainian Vodka to Malaysian fruit juice.
As recently as a decade ago, entering the Chinese market was synonymous with entering the Beijing, Shanghai, or possibly the Guangzhou markets. It meant understanding the potential of a few select regional markets, as only those markets were believed to be profitable. The result has been a massive increase in marketplace competition coupled with the increased sophistication of 1st tier city consumers. New advertising campaigns continue to attract legions of curious consumers and their willingness to try new products is high; however, brand and product loyalty for many product categories continues to remain low.

Market Entry Strategy in China
The breakneck speed of the development of consumer markets in 1st tier cities such as Beijing, Shanghai and Guangzhou has led to a dynamic saturation of these markets by a constantly changing abundance of similarly-perceived products coming from around the globe. The term “dynamic market saturation” has been used to describe the high turnover of products entering the 1st tier city markets, all chasing after the same consumers although the size of the market in terms of the number of consumers remains fairly stable.
The vastness of China and the sheer size of the population mean that opportunities still abound for companies interested in entering this market. However, regardless of the product category, a passive market entrance that relies on the sheer number of potential consumers in China to flock to any and all products is no longer enough. A strategic decision-making methodology is now essential for determining whether or not to take the plunge in China.

Research in 2nd Tier Cities
Bypassing the highly competitive 1st tier markets is a viable option for many companies and can offer numerous rewards; in fact, it should be seriously considered. A recently concluded market research study carried out by Labbrand focused on understanding the feasibility of a new vodka brand to enter the Chinese market by bypassing the 1st tier markets, and identifying areas of consumption which go beyond the competitive battlefields of the nightlife and entertainment venues of the 2nd tier markets. In short, the objective of the study was to understand which vodka products from the client’s portfolio are suitable for whom, and where they are most likely to be consumed.
The scope of the study included a semiotic analysis of baijiu2 codes, video ethnography, and qualitative consumer focus groups with regular drinkers of baijiu and other alcohol in Chengdu, Shenyang and Wuhan. The focus groups were organized in restaurants together with a meal in order to allow for a thorough product tasting. The following key points were addressed in the consumer market research:
• General understanding of spirits and consumption habits,
• Consumption occasions (specifically for hotels, restaurants and cafes),
• Vodka category understanding,
• Brand name test,
• Taste test ,
• Packaging design test.
The project was completed with a brand positioning and strategy workshop to develop a compatible positioning of the brand for China.

Semiotic Analysis
The semiotics phase consisted of identifying the positioning of different Baijiu brands, the main codes used in communication and an analysis of various bottle styles currently found in the market place. The semiotic analysis identified the key axis for positioning in China. For Baijiu brands, codes used in communication were positioned along an axis ranging from power and achievement to universalism, tradition and heritage to hedonism and stimulation. The bottle designs were classified from power and status to universalism, from classical to modern, as can be seen in the diagrams below.

Data Collection and Recommendations
The focus groups revealed that in comparison to their 1st tier city counterparts, knowledge of foreign alcohol was limited among small city consumers. Foreign alcohol types were not differentiated, for example many participants did not know the difference between vodka and wine. Perceptions regarding drinking occasions and behaviors also varied. Within Chinese liquors, consumers would often buy the most expensive baijiu to have a drink with their boss, but purchase an inexpensive liquor to enjoy with their friends. With regards to foreign alcohol, beer was considered to be a casual drink that could be enjoyed with friends over dinner, whereas wine, specifically red wine, was considered more sophisticated and romantic. Foreign hard alcohols were associated with clubbing and being cool and trendy. The idea of having a glass of whisky for enjoyment was not present among respondents. Purchases of foreign alcohol were based mostly on promotion and availability, while the reasons given focused on wanting to be trendy or garner the admiration of peers.
Information from the video ethnography and consumer focus groups also helped refine the client’s understanding of the target consumer and how they can best be engaged. Further recommendations included key areas identified as requiring improvement, namely the product name and packaging. The semiotic analysis also offered clear findings regarding dominant and emerging packaging and bottle codes.
Labbrand also made several comparisons and recommendations regarding potential distribution channels of interest for or client. By focusing on consumption occasions and locations, new restaurant types currently not considered a priority by major foreign brands were identified as potentially viable for introduction of the clients Vodka brand. For example, a vodka brand could develop a partnership with a Western-style restaurant positioned mid-market managed by a Chinese single proprietor. Premium alcohol brands are unlikely to target this type of outlet, yet a lot of consumers could be reached through this restaurant channel.

Conclusion
There is a vast amount of information available regarding Chinese consumers; however, most of these studies often forget to mention that their research was limited to a few 1st tier cities and possibly some quantitative statistics provided by the statistics bureau of China. A major learning for our client was that their understanding of the Chinese market and the results from the research were unique and required them to re-evaluate their market entry strategy. 1st tier and 2nd tier consumers are very different. Product understanding, market exposure, needs and expectations will be different in different product categories. Only through a well-formulated brand strategy based on comprehensive market understanding can brands, large or small, domestic or foreign, hope to build brand equity to succeed in the long run in China.

1. Translated from German, “Das Risiko, nicht in China zu sein, ist größer als das Risiko, in China zu sein”, quoted from Heinrich von Pierer

2. Baijiu (白酒; pinyin: báijiǔ), is a Chinese distilled alcoholic beverage. The name literally means “white liquor”

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About the Author:
Vladimir Djurovic is the founder and Managing Director of Labbrand, a Shanghai based innovative brand agency specialized in brand research, strategic and creative services. Labbrand website at: http://labbrand.com/ is also the portal to Labbrand branding blog: http://labbrand.com/english/news_and_articles.php/ and reviews of branding related hot topics, with a special focus on China.
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One of the easies, effortless, and the least time consuming of the well known free ways to make money online is to buy the “Resell Rights” for an existing information product online. This would be the most perfect of the available free ways to make money online, if you are interested in selling information products online and you have neither the time nor the effort to come up with your own product. Basically, you get to make money by reselling an existing product online, by achieving (or technically purchasing) the right to resell the product online legally. However, to make good money using this particular method among all the existing free ways to make money online there are some point to take in consideration:

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This is a very important point when it comes to buying the resell rights to an information product. The truth is, by buying the resell rights to any product, you are actually claiming the right to be the sole sales person for this product. Therefore, as any sales job, if you do not believe in what you are selling, you will not sell any of it. Accordingly, as you choose your product, you need to truly believe in it and its message. After all, since you are the one choosing what to sell and it is not forced on you, you are better off doing what you are passionate about and would be fun doing. Moreover, if you are selling something that you believe in and passionate about, the chances are you will be capable of transmitting you passion and your belief to your customers. Your prospect customers will see your trust and your passion about your product in the way you talk about your product, the way you sell it, and the way you advertise for it; thus increasing your chances to get a sealed deal!

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Now, this may seem as an obvious note, but you will be surprised how close you were of picking the wrong product. You need to be picky when it comes to picking your product. It is great to have passion, to believe in what you are selling; it sure helps and makes your job much easier and faster. However, if it is an unknown product or a failing product, all the belief and the passion will get you nowhere. Therefore, you need to be objective as you pick your prospect product which you are considering buying its resell rights. You need a product that has an average success or above average success in the market. By success, we mean a product that has good reviews by its buyers, good feedback from professional critics and good sales long before you buy its resell rights. These are good indicators that your job selling the product afterwards would be much easier and less time consuming.

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This point as a matter of fact is a complementary for the pervious point. Basically, if you chose a product with good success rate in the market; most likely its success speaks of itself, causing the product to sell itself. However, we are stressing on this point because you are here reading to know how about effortless free ways to make money online. So if you are looking for an effortless, not time consuming methods to make money online; then you need to choose a product that sells itself. This way you will not need to spend the time and the effort promoting for your product, you will have a self sale generating product and all you need to do is to collect the revenues.

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Let us look at it this way; the sales of your prospect product are like a pie that is divided on the number of people selling the product based on their efforts and their marketing strategies. Therefore, if you are sharing the pie with 5 people, your share would be (considering that all efforts are equal) 1:5; while if you are sharing the pie with 50 people, your share would be 1:50. Thereby, you have better chances to get better results, make more money, and get noticed easier sharing the market with fewer competitors. So you will need to make sure as you pick your product not to be outnumbered in the market. Specially that the resell rights are not to be sold once; which means that the owner of the product could sell the resell rights to more than one person. This is one more reason why you need to check the number of people you are sharing the pie with before you go on and purchase the product’s resell rights.

Hopefully, these few tips had made purchasing the Resell Rights for an information product as one of the free ways to make money online clearer and easier. To know more about various free ways to make money online, please log on www.doubleurincome.com and subscribe by registering your e-mail address. This will grant you to be the first to get the latest updates about the free ways of making money online.

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About the Author:
At Double Your Income, you can find free online advice on Internet Marketing, along with more specialized consulting services to your small and medium sized online business in Egypt and the Middle East that are customized to perfectly suit your business’ needs and goals.
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