Bachelor Thesis - Promoting a German Brand in China - Using the Example of Evonik Industries AG

Table of Contents

Table of Contents II

List of Abbreviations V

List of Figures VIII

Table Directory IX

1. Introduction 9 

1.1. Introduction to the Topic 9

1.2. Approach 10

2. A Basic Introduction to the People’s Republic of China 12 

2.1. Geographical Position and Economically Important Cities 12

2.2. Historical Overview Since 1800 16

2.3. One Country, Several Languages 22

2.4. Social Development 23

2.5. The Three Major Systems of Beliefs 24

3. Investment Guidelines for German Companies in China 31 

3.1. Political Environment 31

3.1.1. Domestic Political Situation 31

3.1.2. German-Chinese Relationship 33

3.2. Economic Environment 36

3.2.1. Current Data and Economic Development 36

3.2.2. Entering the Chinese Market 43

3.2.2.1. Market Entry Barriers 44

3.2.2.2. Special Economic Zones 46

3.2.2.3. Market Entry Strategies 47

3.2.3. The Influence of Corruption 49

3.2.4. Employment Market Situation 51

3.2.4.1. Current Data 51

3.2.4.2. The Problem of Finding Skilled Labor 52

3.2.4.3. Income Developments 54

3.3. Legal Environment 55

3.3.1. A Basic Introduction on Chinese Legal System 55

3.3.2. Law and Guanxi 57

3.3.3. The Current Tax System 57

3.4. Socio-cultural Environment 61

3.4.1. A Basic Introduction to China’s Culture 62

3.4.2. Symbols and Their Interpretation 63

3.4.3. Hofstede’s Dimensions 65

3.4.4. Challenges to German-Chinese Cooperation 67

3.4.4.1. General Discrepancies 67

3.4.4.2. Negotiation Process and Behavior 68

3.4.4.3. Managing Chinese Employees 71

4. Brands in China 74

4.1. Basic Information Regarding Brands 74

4.2. Overview to the Chinese Trademark Law 75

4.3. Advertising in China 76

4.4. Relevance of German Brands in China 77

4.5. Piracy of Brands and Products 80

4.5.1. Origin and Development 80

4.5.2. China’s Special Significance 82

4.5.3. Consequences of Brand and Product Piracy 84

4.5.4. Forms of Protection 85

5. Promoting the Evonik Brand in China 88

5.1. Company Presentation: Evonik Industries AG 88

5.2. Evonik in Germany 89

5.2.1. Evonik’s Target Groups 90

5.2.3. International Market Initiative “We love your problems” 95

5.3. Evonik in China 95

5.3.1. Focusing on Alternative Target Groups 96

5.3.2. Roll-out of the International Market Initiative “We love your problems” in China 97

5.4. Analysis of Evonik’s Marketing Strategy 102

6. Conclusion 106

List of Literature CIX

Internet Sources CXII

Miscellaneous Sources CXVI

Appendix  CXVIII