Overview & Introduction of

Chinese Marketing Research Industry

China Marketing Research Association （ CMRA ） President of CMRA: MRs.Ke Huixin

Secretary General: Jason Ho

Content① Feature of Chinese MR

② Environment of Chinese MR

③ Introduction to CMRA

Macro Economic Situation of China 2000-2005

209 220 230 236 250

587 637 700787

874

1800386

428453

484

524

1,383

1,506

1,649

1800

1,2851,182

0

250

500

750

1000

1250

1500

1750

2000

2000 2001 2002 2003 2004 2005预测

first industry seconday industry

third industry GDP 8.8%

7.7% 9.1%

8.8%

4.7%

10.5%

7.9%

CAGR

SOURCE: National Bureau of Statistics of China exchange rate was 8.28 in 2000, 8.1 in 2005.

9.5%

• fast increase of macro economy.• faster growth in the secondary industry, esp. the manufacturing industry.• lower growth rate of the third industry, esp. the servicing industry.• in 2005, China experienced a fast growth, even under the national macro control.

9.2%（ Unit of GDP ： billion us dollar ）

Income and expenditure trends of urban and rural residents of China

664

883

992

1,080

1,163

1,296

294339 357 374 399

448523

663

753

856

970

1,105

261 282 301 318353

391

200

400

600

800

1,000

1,200

1,400

1997 2001 2002 2003 2004 2005

yearl y di sposabl e i ncome of urban resi dent

yearl y di sposabl e i ncome of rural resi dent

urban yearl y per capi ta expendi ture

rural yearl y per capi ta expendi ture

SOURCE: National Bureau of Statistics of China Data of 2005 is predicted according to the first half year’s performance

9.6%

7.7%

13.5%

5.6%

Unit ： US Dollar （ exchange rate:8.1YUAN=1DOLLAR ）

Area with high income

north

south

east

south

northwest

Inner Mongolia

QinghaiTibet

middle

Over $2000$1500-2000$1200-1499$1100-1199$1000-1099Less $1000

Sichuan

North

east

CAGR 2001-2004

Feature of Chinese MR

Current Situation

71

112

152

336

400

480

255

19418

8.34 4 5 5 5 5

36

58

36

2020

323127

0

100

200

300

400

500

1998 1999 2000 2001 2002 2003 2004 2005Chinese MR(million Euro) global increasing rate chinese increasing rate

Comparison between Chinese MR to global MR

Source:CMRA Exchange rate, Euro:RMB=1:10

56%67%

80%

44%33% 26% 24% 20%

69% 74% 76% 80%

20%31%

0

0.2

0.4

0.6

0.8

1

1998年 1999年 2000年 2001年 2002年 2003年 2004年

Chinese clients overseas clients

SOURCE ： CMRA SURVEY

Business at home makes the majority clients of the Chinese MR industry, increasing from 56% in 1998 to 80% in 2004.

Main Sources and Types of Clients

Main Sources and Types of Clients

SOURCE ： CMRA SURVEY

2820

2530 29

23 22

3

3

65

12

714

1

2

65

9

1414

2

2

3 2

77

7

11

8

68

8

6

1030 49 30 277

5

6

112

3 23

9

6

14 1420 21 25 29

21

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001 2002 2003 2004

OTHERS

AD AGENCY

MEDIA

DURABLECOMMODITYHEALTHCARE

AUTOMOBILE

TELECOM

FMCG

SURVEY METHODS

QUANTITITIVE: mostly face to face interview

Face to face interview is the most commonly used way

for data collecting in quantitative research. But

since 2002, the ratio of face to face interview has

gone down year by year, while CATI has been

increased greatly, and mysterious custom also

experienced an increase. Other electronic ways has a

trend of increase in 2004, such as online survey,

though it’s low cost, simple operated, anonymous,

it’s lack of objectiveness and credit.

SURVEY METHODS

Since 2001, various ways of qualitative methods has been utilized. Focus group is always the most commonly used method, meanwhile, in-depth interview and other methods has been used more and more widely.

QUALITITIVE: mostly focus group

Environment of Chinese MR

Opportunity

World famous MR companies have entered China by ways of foreign-owned or

joint venture. Though competition is fiercer, advanced research experience,

methods and management experience has been brought in.

The per capita GDP of China’s mainland is now over 1,000 US dollars. The consuming structure is accelerating to a enjoying type, the luxurious in the past has become the daily necessity. House, automobile, telecom will experience an explosive increase, service industry will also have a huge development.

fast development on research methods

soaring increased demands

Challenges

service capability needs to be enhanced

Service capability is the key sector to be improved in the Chine

se investment environment!

fiercer competition

large disparity to advance countries

1 ： 8

1 ： 21

China VS

USGDP

Investment on

MR

More people enter into this industry, one is from China, the other

is from abroad.

Tremendous changes in the past 20 years

Single way of data collecting

Research &

consulting service

Beijing Shanghai Guangzhou Nation wide

No rules ESOMAR code

service quality ： low to high

online ： few to many

regulation ： none to some

National

regulation

Introduction to

China Marketing Research Association (CMRA)

Development story of a civil industrial organization

◆ sprout 1997 ◆ formed 1998 ◆ legalized 2001 ◆ structure maturity 2002 ◆ grown up 2005

Service Targets of CMRA

◆ Members ◆ Clients ◆ Industry

MAIN FEATURES OF CMRA

◆ civil founded ◆ democratic, transparent and overt decision

making process ◆ advocating contribution to the industrial d

evelopment ◆ serving the members ◆ following international codes ◆ having both advantages and disadvantages

● Trying hard to promote the national economic and MR development, being the pivot between the government and the enterprises;

● Proving information to the members, government, enterprises and all works of life of the society, strengthening the communication with related department of the state;

● Promoting the understanding and execution of laws and polices, strengthening self-regulation, advocating industrial ethics, technical standards and reference pricing system;

● Strengthening international communication, being the window to the outside world; trying to cultivate and explore national market, enhance the knowledge level of the enterprises of China towards marketing research and its scientific theories.

AIM OF CMRA

Ten Tasks of CMRA

●Drafting regulations for the Chinese marketing research industry;● Promoting basic construction of marketing research standardization,

security and data base; ●Organizing various trainings, advocating and popularizing marketing

research techniques, publishing related technical materials, periodicals, books and so on;

● Promoting international research exchange and cooperation, fastening the progress of Chinese marketing research industry;

●Promoting various kinds of alliance and cooperation between marketing research agencies and member companies, promoting the exploration, utilization and sharing of marketing research resources;

Ten Tasks of CMRA

● Studying, discussing and communicating marketing research methods, applied theories and practical problems;● Organizing nation wide presentations of new techniques and new products as well as business communication;● Coordinating the making of the industrial development plan;● Organizing cooperation related to technical study, explore, sales, maintenance and so on;● Reporting demands and suggestions of the industry, defending legal rights of the industry.

Organizational structure of CMRA

Organizational structure of CMRA

MEMBERSHIP ASSEMBLYEXECUTIVE MANAGERPRESIDENTAccounting and auditing council, member service council, public relations council, overseas exchange council, standard and formulation council, rights and benefits guarantee council, academic council, clients service council, training and technique council, publishing and editing councilSECRETARIST

More information: http://www.cmra.org.cn

THANKS!