Overview & Introduction of Chinese Marketing Research Industry

1. Overview & Introduction of Chinese Marketing Research Industry China Marketing Research Association （CMRA） President of CMRA: MRs.Ke Huixin Secretary General: Jason Ho

2. Content ① Feature of Chinese MR ② Environment of Chinese MR ③ Introduction to CMRA

3. Macro Economic Situation of China 2000-2005 • 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. （Unit of GDP：billion us dollar） CAGR  9.2% 8.8%  9.5%  9.1%  7.7%  8.8% 7.9% 10.5% 4.7% SOURCE: National Bureau of Statistics of China exchange rate was 8.28 in 2000, 8.1 in 2005.

4. Income and expenditure trends of urban and rural residents of China Unit：US Dollar（exchange rate:8.1YUAN=1DOLLAR） Area with high income Over $2000 $1500-2000 $1200-1499 $1100-1199 $1000-1099 CAGR 2001-2004 Less $1000 North east 9.6% Inner Mongolia northwest 13.5% north Qinghai Tibet middle Sichuan east 5.6% 7.7% south south SOURCE: National Bureau of Statistics of China Data of 2005 is predicted according to the first half year’s performance

5. Feature of Chinese MR

6. Current Situation Comparison between Chinese MR to global MR Source:CMRA Exchange rate, Euro:RMB=1:10

7. Main Sources and Types of Clients Business at home makes the majority clients of the Chinese MR industry, increasing from 56% in 1998 to 80% in 2004. SOURCE：CMRA SURVEY

8. Main Sources and Types of Clients SOURCE：CMRA SURVEY

9. QUANTITITIVE: mostly face to face interview • SURVEY METHODS 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.

10. SURVEY METHODS • QUALITITIVE: mostly focus group 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.

11. Environment of Chinese MR

12. Opportunity • soaringincreased demands 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 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.

13. service capability needs to be enhanced Service capability is the key sector to be improved in the Chinese investment environment! • Challenges • fiercer competition More people enter into this industry, one is from China, the other is from abroad. • large disparity to advance countries China VS US GDP 1：8 Investment on MR 1：21

14. Tremendous changes in the past 20 years • service quality：low to high Single way of data collecting Research & consulting service • online：few to many Beijing Shanghai Guangzhou Nation wide • regulation：none to some No rules ESOMAR code National regulation

15. Introduction to China Marketing Research Association (CMRA)

16. Development story of a civil industrial organization ◆sprout 1997 ◆formed 1998 ◆legalized 2001 ◆structure maturity 2002 ◆grown up 2005

17. Service Targets of CMRA • ◆ Members • ◆ Clients • ◆ Industry

18. MAIN FEATURES OF CMRA • ◆ civil founded • ◆ democratic, transparent and overt decision making process • ◆ advocating contribution to the industrial development • ◆ serving the members • ◆ following international codes • ◆ having both advantages and disadvantages

19. AIM OF CMRA ● 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.

20. 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;

21. 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.

22. Organizational structure of CMRA

23. Organizational structure of CMRA • MEMBERSHIP ASSEMBLY • EXECUTIVE MANAGER • PRESIDENT • Accounting 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 council • SECRETARIST

24. THANKS! More information: http://www.cmra.org.cn