China Case Study: Dyson
Dyson is a success story in terms of how foreign consumer goods brands can build and maintain a special image in China - by leveraging product design and marketing in a localized way.
Dyson in China – Key Facts
After Dyson entered the Chinese market entry in 2012, the country became the firm’s fastest growing market in 2014 and has been ever since. But this development was not pure luck or coincidence, since Dyson strategically invested in its operations in China:
- Established network of ~15 Dyson self-operated stores and 135 3rd-party-operated POS in 90 cities (focus on tier-1 cities & pop-up store concept)
- Built a technology center in Shanghai to better understand the Chinese consumers
- 20% of revenue invested into marketing
These investments were soon followed by commercial success:
- Vacuum cleaner market share in China of ~60% offline and ~20% online
- Airwrap hair styler sold out in 3 minutes on Tmall
- Sales of 100 million yuan in one hour during 11/11
In fact, the company has been so successful in China and Asia in general, that it decided to move its headquarters to Singapore in 2019 to reflect the importance of Asia business, which accounts for ~50% of total global revenue.
Dyson in China – Success Factors
In summary, what contributed to Dyson's success in the Chinese market? EAC wants to highlight four points in which the company can be seen as a benchmark for premium consumer good brands in China:
- Top quality and focus on fashionable design and exciting technology, based on best-in-class (local) product innovation
- Consistent premium pricing strategy (few promotions)
- Clear target group (mostly young women in the rising middle class)
- Successful e-commerce and online marketing strategy (high investment!)
