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 for one of its brands, seeking to avoid disruptions to its broader business interests and 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.We crafted messages to help our client explain how its global restructuring affected local investment decisions, and highlighted the exit's alignment with China's broader development goals.

The Result

Our client closed its local facilities with minimum impact, while 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.

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