The German customer is one of the leading, worldwide operating suppliers of systems for bonding, sealing noise reduction, abrasion protection, corrosion prevention, other coatings and application equipment. Its products are sold in the vehicle aftermarket, bus & railway sector and in other industries in more than 60 countries through more than 50 agents.
The customer was planning to develop its business in China and therefore had contacted Horsten to do a market investigation and assist the company with its China entry plans. Initially only the opportunities for the vehicle aftermarket business were investigated.
Involvement of Horsten International
Horsten performed a market investigation, a distributor/partner search and gave general strategic advice and market entry recommendations.
The following items were analyzed during this market investigation:
- General status of the Chinese market of similar products in the vehicle aftermarket sector
- Competitive analysis of domestic and international players in China
- Distribution channels and dealer structures
- Pricing and marketing strategies of the international players in China
- General feasibility study, including regulatory issues, as well as possible technical, operational, logistic and economical constraints
This investigation was mainly be done through desk research, partly also through a limited field research (i.e. visits to car dealers, do-it-yourself shops, local distributors or wholesalers, etc.).
From the early start of the project Horsten also searched and identified possible distributors, agents and/or other potential partners for the customer. This included an initial screening, negotiation of general conditions, etc., leading to a shortlist of a few pre-selected distributors.
And finally a general risk assessment was done, some scenarios for market entry and a general marketing plan was worked out, including the optimal legal and financial framework to be established.