Breaking Out of China’s Value Trap [Archive.org URL]

Many multinationals expanding into China’s inland cities become caught in a “value trap.” Mounting losses follow initial investments. Fragmented markets and immature distribution systems confront local managers. China experts Jim Hemerling and Hubert Hsu present options for avoiding this common pitfall including: a new business model grounded in cost reduction; a better perspective on China’s non-urban consumer; and the opportunities creative partnering with local companies can offer. The authors based their research in China where they have extensive multinational experience.

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