China CRM Solution Guide

Peter Kitson

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2. OVERVIEW OF CHINA CRM MARKET

When the CRM concept was initially introduced to China in early 1999, it quickly attracted the attention of Chinese software vendors at Internet speed. Tempted by the huge potential CRM market in China, some of the vendors did not wait to grasp this opportunity. After understanding the basis of CRM concept, they organised the developing workforce and joined the CRM battle. Also, the software companies and the computer publishing media started to play the role of CRM market educator, making a large effort to promote CRM.

At present, we believe that the first brainstorming stage of the “CRM concept” is basically over. It has undergone a blur period in 1999, and then a concept integration period from 2000 to 2001. By 2002, the basic understanding of CRM by the software vendors and main media bodies has, through their own efforts, reached a common ground and entered into a relatively quiet stage of “CRM deep exploration”. One specific point is that the introduction of the CRM concept has unfortunately undergone the same treatment as other introductions of management concepts in the past with its trendy approach. While the CRM concept is still far from “getting its right” among the Chinese large enterprise population, the software dealers and the media, who have shown great enthusiasm and eagerness in the first place, seem to have lost their interest in CRM concept promotion before the “China CRM model” has been established. We believe the main reason for “being quiet” is due to the passive responses from the potential CRM adopters to the CRM marketing slogan. Even though some enterprises have implemented CRM, the dollar value of these deals was probably too low for them to be shown as having been a success. In such a situation, the dream of making easy money from it quickly vanished, resulting in a mass reduction of non-profitable promotion activities in the broader market.

The CRM market in China was somewhat calmer in 2003. However, it has also started to become even more mature. The enterprise users started to pay attention to practice and application and not only to concepts. In view of the hurried implementations in the last few years, the enterprise users were paying even greater attention to CRM’s non-software portion. From the user point of view, more enterprises have realized the importance of CRM and were no longer just interested in concepts and ideas. They were earnestly asking and exploring the question of what actual CRM can bring to them, what problems it can solve and what wealth it can create. As far as the huge market of CRM was concerned, only if the demands of the enterprise’s development actually activated the CRM market, then could the CRM market genuinely achieve a progressive maturity based on the maturity of the targeted users. The entire market had already ripped off the prosperous outer coat and was reaching the moment where the enterprise has to depend solely on its strength to compete. The capital and policy were no longer strong, and even the users and the media were no longer confusing prosperity with mere concepts. The only way in which the CRM profession enterprises can continue to remain in the field and compete is if they really do have sufficient strength!