Global cosmetic brands can produce glitzy advertising displays, but they also need to study the Chinese market. [Photo provided to China Daily]

Research company Ipsos helps guide market strategies for domestic and foreign partners

A company that started off in the 1970s, selling information on the effectiveness of French billboard advertisements and the reading habits of French executives has grown into a global behemoth that now advises companies on the idiosyncrasies of Chinese consumers.

Ipsos SA, a leading global market research company with headquarters in Paris, said it has grown into the fastest-growing and largest market research firm in China after entering the country in 2000.

Ipsos has offices in five Chinese mainland cities: Shanghai, Beijing, Guangzhou, Chengdu and Wuhan.

It has expanded from 120 full-time employees in 2003 to 1,200 people today. Revenue from Ipsos' China business increased to more than 1 billion yuan ($161 million) last year, and company officials say they expect it to continue growing.

In 2012, Ipsos won bronze in the revenue growth category of the French Businesses in China awards, sponsored by the Paris Chamber of Commerce & Industry, just behind L'Oreal and Air Liquide.

"The majority of foreign companies I deal with regard China as the most important market in the world. For them, it is not about whether to enter China, but having the right China strategy," said Liu Lifeng, Asia-Pacific CEO and China chairman for Ipsos.

China offers great business opportunities for foreign players because of its rapid economic growth and huge market, Liu said. However, companies often run into challenges such as inadequate market information, an inappropriate entry strategy, lack of access to sales channels, difficulty in finding the right partners and cultural differences.

There are many angles for China neophytes to consider that they may not have even thought about. Just because something sells well in Boston or Berlin, that doesn't mean it will sell in Beijing.

"For example, if a Western cosmetics brand wants to open factories in China, they cannot just follow their product formula or copy marketing models from their home country. It needs to study Chinese people's skin type, the quality of local water and many other factors."

If companies are unable to easily get such answers by themselves, Liu said, "we offer them detailed studies of what they need to help them accurately locate target consumer groups, find the best way to promote their products in China, and inform them of users' feedback." That, he said, saves them time and money.

Ipsos officials have developed practical and systematic approaches to help its clients reduce these risks and maximize the return on their investment in the Chinese market. The company's services include research in advertising, marketing and customer loyalty; media and public affairs measurement; and relationship and survey management.

Liu said Ipsos researchers assess market potential and interpret market trends for foreign companies, helping them develop brands and build long-term relationships with customers.

They also help in testing new products, concepts, advertisements and studying audience responses to various media and measuring public opinion.