Nalysing the impact of Confucianism on customer behaviour and Literature review

Nalysing the impact of Confucianism on customer behaviour and perception of western brands - Literature review Example China has about 1.3million HNW individuals making it one of the most attractive wealth management markets and thus the high street fashion brands expand to China to make profits (BBC News, 2012). Sale of goods in china is exploding despite of tax importing the Chinese market. Online consumption of western product by the Chinese consumers by 11% in the next five years or so and sales of the brands will grow by twice by about 25% a year. China is the largest consumer of Louis Vuitton and accounts for about 15% of global sales (The Economist, 2011). The Chinese market have proved to be an important market for most of the western brands as the top five most recognised brands in China are imported overseas. In the Chinese market the top brands which have successfully made are Nestle S.A, Chanel, Samsung Group, Apple Inc, Sony Corp, Nike Inc, Starbucks Corp, Canon Inc and other brands. With other western and luxury brand such as Armani, Louis Vuitton and Gucci were also reported to show hi gh in rating among the western brands. Thus it was analysed and stated that China prefers foreign brands (China.org, 2012). The continued rise of consumers in China and rising demand for western brands has proved to be helpful for the luxury sector. The Chinese market is expected to become the leader in consumption of luxury brands by the end of 2014 and contributing about 40% of growth in the next 10 years overtaking Americans and the Japanese. China is predicted to have consumers who will be able to afford luxury brands and products (Smither, 2012). Americans fast food companies such as KFC, Mc Donald’s, Dunkin Donuts have succeeded in China and it is mainly because of the brand image possessed by them of being trustworthy and healthy. According to China market research group, the consumers view these brands as healthy as the Chinese fears tainted ingredients as compared to fats. Thus it quite clear that the way the consumers based in China tends to view the brands is diffe rent from how the brands are perceived in other countries. Thus the success depends on localising the brand. One such example is of Renault, which localised it product in order to appeal to the young professionals in China. The new initiative is to become part of larger trends of retailers who are offering localised services, special products to the Chinese consumers and access the lucrative market (Train, 2011). However there have been incidents when brands have not succeeded in creating brand image for the Chinese consumers. The main reason why brands tend to fail in China is they do not adapt to the concept of localisation of the product. Groupon which happened to close 13 of its stores in China is the latest example of western internet company to fail in Chinese market. The company failed mainly because of local understanding of the consumers, arrogance, management structure were the factors lead to failure of Groupon in China. These are the four main reasons for failure of Groo pons. Arrogance Groupon used to pay highest salary based on market standard and atract5ed the top employees of its competitors. The company also assumed that this