Successful Chinese market expansion by a luxury watch company
Watch Co.* is a medium-sized producer of luxury timepieces. The company focuses on traditional styles of wrist and pocket watches, currently selling in several high-income countries, Hong Kong, and wealthy urban areas in Mainland China.
Having found success in Hong Kong, the company wanted to expand into Mainland China, a neighboring market. However, the company was unsure if it was financially feasible to enter Mainland China and wanted to plan to ensure successful expansion.
We first applied a multi-step approach in assessing the feasibility of the company entering the Mainland China market.
This included analysis of their existing business and prevailing market conditions in Mainland China, among other important factors that Mersol & Luo considers as a local expert and proven partner. Our findings found that it was feasible for Watch Co. to enter the market under specific conditions and considerations. We then helped the company develop a practical and implementable strategy for market entry and set the foundation for steady long-term expansion.
Working with Mersol & Luo, Watch Co. successfully expanded their business into Mainland China while establishing a presence in wealthy coastal urban markets.
Sales from these markets are seeing double-digit year-on-year growth due to the strategies and recommendations from Mersol & Luo. Our team continues to help them adapt strategies to changing conditions in the local market while focusing on increasing brand awareness and value among consumers.
Impact in 16 months
*We protect the confidentiality of our clients. Although the name has been changed, the results are real.
About Mersol & Luo
Mersol & Luo’s expertise on the Chinese economy assist global companies in ensuring their expansion to China is appropriately prepared for to maximize profits and market impact. By having local understanding, relationships and real-time trade experts Mersol & Luo guides you through the process.
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