Advertising in China

Abstract

The Economic reform implemented in China during the last two decades has significantly improved the living standards of the Chinese Mainland. The rapid pace of economic development has brought about an increasing purchasing power of the Chinese population who is more willing to spend. Until the economic reform, the Chinese Mainlanders had largely been isolated from foreign goods and services. However, changing from a socialist economy to a planned economy supplemented by market forces, China as a huge potential consumer market is flooded with a tremendous number of foreign imported goods for consumers to choose from. As the market becomes competitive, it is crucial for companies to be able to quickly create product awareness among the potential consumers in order to secure a share-of-mind of the consumers and subsequently influence their choice decision among competing brands. Advertising is an effective marketing element to assist companies to make their brands known to the market.