China's bakery market has the largest in Asia and the second largest in the world.
Many of the Korean and Taiwanese companies that have entered China’s market are successful. However, some latecomers find it difficult to transcend the existing entrants.
China’s market has diverse and unique cultures for each region and nation, so preparation is necessary to enter the market.
First, based on the results of market research, firms should establish the company’s position and seek a differentiation strategy against other competitors. This factor will shape the competitive advantage for companies to make long-term developments in China’s market and determine the company’s future success or failure. Therefore, firms need to carefully develop their core strategies and position themselves in the future market differently based on their competence.
Second, prepare for localization based on Chinese people's living and consumption habits. Firms should be prepared for advanced research and planning before they enter the China’s market. Next, firms should observe China’s changing market environment to prepare a thorough localization strategy for Chinese people's eating habits and customs.
Third, regional differences within China must be clearly understood. China has a vast territory and many ethnic groups, and each region’s culture and consumption habits are different; preliminary research and analysis should be used to ensure the firms’
strategies match them. This is due to obtaining different results depending on regional differences. This study only shows performance differences among different regions.
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A deeper understanding of regional differences in the culture and consumption habit is needed. These issues can be explored in future research.
Fourth, China's first-tier cities are already intensifying competition between global brands and local brands that have substantial funding capabilities and high brand recognition. As urbanization progresses, the development of second and third tier cities is taking place, so it is worth considering to increase the awareness and the preemption effect by preempting the location suitable for the right commercial occupancy and industry in these regions.
This study analyzed the cases of successful Taiwanese and Korean bakery firms in China and studied the entry mode and expansion strategies. This is a bit short on the assumption that more companies failed to enter China. It is also necessary to conduct case studies of other companies that have already successfully entered the market.
We must consider that the China’s market may have developed differently from our thinking in the future. Internally, there are many political, ethnic, and regional economic differences. Therefore, future research should research various elements, companies, and regions.
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