Determining whether China would be a good fit for you is a priority before entering the Chinese market. Hence, market sizing in China is an important tool for your company. As it is important to know how popular your product or service would be in China, it is just as important to see if the market you are aiming at is sufficiently large for your company to enter.
Indeed, should the market be too small, your company will end up depending on only a few clients, and may not fare well should they choose to go to your competitor. Too large and you will have to spend extra on your marketing to be able to reach the maximum number of consumers. Therefore, sizing your market and aiming for the optimal sweet spot is necessary for you in order to properly enter China.
As the Chinese population rise, in numbers and in median income, their needs evolve and the market does too. Knowing in advance what your sales will look like depending on the 1.5 billion Chinese may very well allow your company to rise above your competitors.
Knowing your market size may also allow you to see opportunities that you can act upon before anyone else. Determining market potential will help you to make different strategic decisions about product development, partnering and distribution, organizational design, and critical employee skills.
“Market sizing is a technical and long process that involves three to four members of our research team and takes two months on average,” explains Clément Mougenot, Research Director at Daxue Consulting.