Intracultural diversity

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Intracultural diversity dynamism of markets in
China
Interdisciplinary skills at stakes
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??China an iceberg style market

• ChinaS within China
• The global picture
• The small parts
• Its structure and specific
• movements

• Velocity and movement
• Time goes.. fast
• Organizations are agile
• Markets are evolving faster faster
• Technologies as well

Value creation ?
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Value creation through transdisciplinary approach

• Through 2 examples
• Bird (mobile phone industry - benchmark)
• Xizhilang (consumer industry analogy)

• What does change ? What does not change ?
• Market dynamic
• Psycho-sociological approach DNA structure of
  the Chinese consumers (stability factors) vs
  unstability factors (trends)

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??The Change aspect of Chinese market
Double structure and movement
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The double structure
Characteristics of the market Mass market and
segmentation Multiple combinations !
Urban area 460 M
Rural area 810 M
Source PCBP
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The movement
Higher expectations Different expectations Urbanis
ation process 30 M per year (wider consumer
basis) The new comers adopts the habits of the
early consumers 20 years ago (prolongation of
the life cycle)
Source Pincheng
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Building from scratch the N1 among the
Chinese producers in less than 4 years
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1999 domination of the market by foreign brands
SourceChinese Ministry
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2000 Bird its decisive strategic leap forward

• Sudden evolution of the market with the emergence
  of a mass market
• Foreign brands technology and upper targets
• Bird market trends (mass markets) and
  technological cooperation (basic technology)

85
10
5
Source Pincheng
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Bird decisive advantage speed, path low
investment
Motorola
Motorola
Nokia
Siemens Ericsson Bird
Philips
Kejian Alcatel
TCL Zhongxin
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Bird decisive advantage speed, path low
investment
2003 advertising (AC Nielsen)
2003 market share
????
Unit10.000
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??The Stability aspect
The DNA of Chinese consumers
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The DNA structure
Source Pincheng
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Main characteristics of Chinese culture
Hierarchy Harmony Reciprocity Power
sensitive Careful Reputation Face
Family Relationship Sensitivity to
others Power
Source ?????????????????????????
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The generational aspect of Chinese
cultureExamples
Source?????????????????????
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Xizhilang
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The ADN approach of Xizhilang
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Conclusion
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Change The movement is an opportunity, not so
easy to overcome StabilityThe DNA is a resource
Change Read weak signals, grasp the moment of
the decisive strategic leap, follow the movement
(go fast and be flexible)first then only,
analyze as precisely as possible Stability
factors and core values Fully use them as a
foundation
Value creation Key factors The Sponge spirit, a
transdisciplinary approach, a cooperative
mindset Fluidity within the organisation,
permeability with the environment Andaction
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