On Aug 21, Professor Chen Xinlei’s in-depth insights on China’s economy and on marketing are covered profoundly in a two-page article in Weekly Chosun. Chen Xinlei explains that the competitiveness of Korean brands is their ‘price-performance ratio’ and advised Korean companies to prioritize consumer preferences over government relations in China.
Professor Chen Xinlei acknowledged the effectiveness of Samsung Electronics and Hyundai Motors in their brand strategies for the Chinese market, in particular highlighting their ‘price-performance ratio (性价比)’. However, this adversely means that Korean-branded products cannot be categorized as luxurious products as they are largely dependent on the product features rather than on innovation or creativity. However, Professor Chen claimed that a sudden change in the pricing strategy may be even riskier, as brands cannot be established in the short term.
Professor Chen claims that Korean culture overlaps in many aspects with the Chinese one, which helps Korean firms to penetrate the Chinese market more easily. Because traditions from the Ming Dynasty still remain in Korean culture, consumers in China feel more familiar to Korean culture, leading to a more accepting attitude toward Korean products.
Professor Chen suggests that Korean firms can take advantage of the fact that international firms have higher corporate credibility over domestic firms in the Chinese market. Offering examples of recent incidents where melamine was found in milk, Professor Chen highlighted the Chinese consumers’ distrust for domestic products.
Meanwhile, despite the downturn evident in a number of emerging economies, Professor Chen argued that the Chinese economy will remain solid. He recommended studying at CKGSB for an easier and more effective route in entering the Chinese market. In contrast to other MBA programs taught in Chinese, CKGSB’s MBA program is offered in English to avoid language barriers. Professor Chen added two more reasons to recommend CKGSB—the faculty’s outstanding educational backgrounds and cutting-edge research, and the school’s unrivaled alumni network.