Advertising in a changing China

Since the introduction of economic reforms and an open door policy in 1978, China has been proclaimed as „the emerging powerhouse of the twenty-first century“. The Chinese market’s attractiveness to international marketers has also received significant boost as a result of the country’s admission into the World Trade Organization (WTO). Accordingly, advertisers look at China and perceive tremendous opportunity in 1.3 billion Chinese consumers which represents one-fifth of the world population in what is called the world’s largest market. Being viewed as a new frontier for consumer good investment does not mean that advertising in China is simple. On the contrary, many Western business firms which have invested their capital into Chinese businesses have suffered setbacks or even failure. Thus, it is important to understand that despite the dramatic impact of economic reform and the drive for modernization over the past two decades, the Chinese market has many special characteristics that make it a challenging place in which to do business including making advertising in this market (Martin and Larsen, 1999). This is similarly remarked by Conley (1996, p. 16): “…no other market is considered more appetizing or difficult.” This thesis examines the key barriers/constraints that foreign firms should be mindful of in order to develop a viable advertising strategy in a changing China in which abundant opportunities await those that can fulfill it.