Market research set to expand rapidly in China

by Beth McLoughlin, Brand Republic 02-Oct-06, 08:00

LONDON - Although the market research industry in China is currently worth a modest £350m, a report by B2B International shows that it is is growing at about 20% annually.

Business-to-business agency B2B International has released the report on the Chinese market research industry as it prepares to open a consultancy in Beijing in January 2007.

There are currently about 100 research agencies in China. While in Europe and North America, most research is about buying into mature markets, in China it is often about entering new markets or creating reports for foreign companies looking to enter the rapidly growing Chinese economy.

Many more of these are conducted face-to-face because it is not much more expensive than interviewing people on the telephone in China. It can be up to 10 times more expensive in Western markets.

The report states that greater use of telephone interviews and web surveys will soon begin to emerge.

Difficulties noted by the report include the language barrier, and the fact that much of Chinese business is conducted through building relationships and word of mouth rather than in a formal way.

There are also a great deal of regional differences within the country, so B2B recommends focusing on one, two or three areas at once rather than the whole country.

Matthew Harrison, B2B director and co-author of the report, said: "With the right agency, research in China is good quality, detailed, insightful, cost effective and above all, an excellent aid to decision making."

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