Minimizing reputational impact of market exit in China


The Challenge

A world-class consumer products company with manufacturing facilities in China approached ASG for a local market exit strategy that would be the least disruptive to its broader business interests and the company’s reputation in China.

The ASG Approach

Our China team devised a strategy to demonstrate that our client’s decision to close its local production facilities was in line with China’s overarching national priorities to eliminate traditional industries from major urban centers. To implement this strategy, ASG conducted research on the relevant government officials and other stakeholders at the provincial-, municipal-, county-, and township-levels and facilitated in-person discussions. In addition to crafting appropriate messages for the company to explain how its global restructuring affected its local investment decisions, we worked with the company to develop messaging that highlighted the benefits of its exit to China’s broader development goals.

The Result

Our client was able to close its local facilities with minimum impact, while still preserving its strategic relationships with local, provincial and national government stakeholders. At a broader level, ASG helped the company position itself as a responsible member of China’s foreign business community and built stronger relationships with key authorities, which will be crucial should the client decide to expand its presence in China at a later date.