Fen Lin Yan Ming: Sinicization of Latecomers

It can be said that the Chinese coatings industry opened a new prologue in 1992. This year, Nippon entered the Chinese market, and ICI, a chemical company owned by Dulux, also established a branch in China. Over the next 20 years or so, these two brands step by step divided most of the Chinese paint market share.

Fenlin entered the Chinese market 10 years later. As a "latecomer", it is faced with an unfamiliar market that has entered the stage of oligarchic competition and the imminent challenge of China.

"Nippon and Dulux are giants. I can't beat them, so I hide." Yan Ming, general manager of Finland China, proposed a strategy for targeting the high-end retail market to the Finnish headquarters. Facts have proved the correctness of this strategy in the initial stage. Even a well-known Finnish economic weekly uses Fen Lin ’s development in China as an analysis sample, calling on European companies to “do n’t blindly adapt to China ’s price atmosphere and start from the high end.”

On the other hand, the process of "Chinese" is more difficult and painful, Fen Lin has to adjust the product formula, but also change the way of doing things. In this process, the most important thing is to fight for the right to speak. The sales of Fenlin paint in China are not high, but the sales within the group have increased the most for several consecutive years. At the same time, the traditional sales model of this century-old European company has been deeply entrenched, and they are happy to use the Chinese market as a test field for a new marketing model. Yan Ming thus obtained the right to speak at the headquarters.

However, the ceiling effect is on schedule. Based on the sales advantages of the high-end retail market, Fenlin (China) will not be able to meet the requirements of the headquarters. "I'm afraid I'm going to enter the low-end market." Yan Ming understands that the market in the lower part of the pyramid is an important part for Fenlin to break through the ceiling. But Fenlin can successfully gain a firm foothold in the Chinese market, relying on the persistence of high-end positioning, when this positioning is abandoned, more uncertainty and greater challenges will follow.

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