Spurred on by government incentives and higher in-comes, Chinese consumers are hungry for all kinds of goods ranging from cars, home appliances and mob-ile phones, to luxury cosmetics, basic foods and homecare products. Just like most western consumers, they focus on good value, based on price, perceived quality and benefits. They are eager to learn about new products, and view brands as vouchsafing both reliability and status.

All that is pretty standard for western marketers, and some have already learnt how to appeal to the weal-th-ier, more sophisticated consumers in Shanghai, Guangdong and Beijing.

But, for many, extending their market into the rest of the country will require strategies aimed at a broad-er swathe of the population, and with a flavour developed specifically for China. Companies that have al-ready gained experience in this have developed some useful ground rules:

Think about geography. China's size and an urban/rural population split mean it is important to plan a stag-ed roll-out to the hundreds of smaller cities that ac-count for the vast majority of the country's wealth. McDonald's is opening outlets in some poorer areas where it will not make profits right away, but where it will develop brand awareness early and snap up the prime locations.

Create parallel marketing campaigns. How most Chinese consumers choose what to buy varies hugely by age, wealth and where they live. Television may launch a product, but consumers rely on on-line ads and forums, word-of-mouth and point-of-purchase information before actually buying. To educate consumers new to the product, talk about product benefits. Packaging for Magniu's Milk Deluxe, which highlighted healthy protein and the brand's geographic origin, helped it to capture more than 70 per cent of the premium milk market.

Focus on value. Chinese consumers are priceconscious and like deals but do not always choose the cheapest option. They re-s-earch alternatives and will experiment, so brand loyalties can be unglued quickly by a good-value proposition from a new competitor. China is very much a cash-and-savings-oriented economy, so cash-off promotions on well-known brands are especially effective.

Carrefour adjusts prices in stores according to local price sensitivities and offers a line of private-label products priced at about 20 per cent below main brands.

Remember "1-2-4 families". The one-child, two-parents, four-grandparents phenomenon means elders lavish attention on children, who are under pressure to meet high family expectations. Spending on products to help children excel (such as educational computers, toys, games and DVDs) is considered worthwhile. This privileged, one-child generation has high disposable income through work or inheriting all their parents' assets.

In Shang-hai, younger consumers who live at home or in small apart-ments go out a lot and spend on fashion and accessories. A successful only-child makes big purchases for his or her parents and supports them in old age.

Master distribution. Modern retail outlets are sparse outside the largest cities and dis-tribution remains fragmented.

As well as selling through western-style ret-ail-ers, Proc-ter & Gamble delivers small quantities frequently to "mom-and-pop" shops by bicycle cart. One reason Dell had to embrace traditional distribution methods for its computers was that so few consumers pay by credit card.

Collaborate with local competitors. Respected domestic competitors are plentiful and often regionally based. A western brand might be the biggest nationally but rank second or third by size in a region. Foreign companies may participate in joint ventures or acquire local businesses to learn about the local market and to add local brands.