16
Jan

By Jeongwen Chiang

Apple staff welcoming customers in the new Apple store at WangFujin business district in Beijing on October 20, 2012

Apple CEO Tim Cook expects China, the world’s most populous country, to become the No. 1 market for the company.

Equally heavyweight tech companies Google or Facebook can only watch with envy. It is not because of lack of effort that they are nowhere near the success of Apple in China. Their businesses are just too different.

The Chinese government’s tight control on freedom of information flow applies especially to the Internet. Web access is filtered on a regular basis. Social media websites such as Facebook and Twitter are blocked because the government deems them as potential hot spots for facilitating politically sensitive or socially inappropriate content.

Meanwhile, Google is operational in China but has to route all searches to its Hong Kong site, and the access is often interrupted. So, it is fair to say that the Chinese government is the reason why companies such as Google and Facebook are not doing well in China.

In contrast, Apple mainly sells hardware, so it has not run into any censorship problems.

Chinese consumers love electronic gadgets. Mobile phones are ubiquitous. Apple is doing incredibly well because its products are so much more attractive and pricy. The iPhone quickly become a status symbol product in Chinese social circles since its debut. Likewise, the iPad also joined the must-have list as soon as it was launched.

If someone wants to lubricate his “guanxi” — relationship — with an important person, these two products are often the gift of choice. Before the iPad reached China, a businessman in Shanghai told me that in the back of his car trunk, he had stocked at least 20 iPads, all bought in Hong Kong. “It is the most-loved present for government officials,” he claimed.

The social pressure of having an Apple product is strong, especially as the wealthy elites set the trend. If a middle class Chinese consumer cannot afford an expensive car or watch, sporting an iPhone may be just as good. Even the bad press surrounding Foxconn, the main manufacturer of Apple products, did not make too much of a dent on the company’s sales. Read more…

Jeongwen Chiang is professor of marketing and chair of the department of marketing at China Europe International Business School.

As published in www.cnn.com on January 15, 2013.

Comments

Muhammad Lal July 13, 2013 - 12:42 pm

thank you for sharing such nice infoto us. i like it its very informative one keep sharing this type of information to keep in touch with the people.

rabaty August 31, 2013 - 10:39 pm

Recent Blogroll Additions…

I saw this really good post today….

facebook piratage October 31, 2013 - 1:18 am

Excellent article. Keep writing such kind of info on your site.
Im really impressed by your site.
Hello there, You have performed a fantastic job. I’ll
definitely digg it and in my opinion recommend to my friends.
I am sure they will be benefited from this site.

Gad subone January 29, 2015 - 8:35 am

This is an interesting and so well maintained blog. Whole article is too good and well written.
high end promotional items

Leave a Comment

*

We use both our own and third-party cookies to enhance our services and to offer you the content that most suits your preferences by analysing your browsing habits. Your continued use of the site means that you accept these cookies. You may change your settings and obtain more information here. Accept