Analysis of Risks Faced by Chinese Exporters After Entering the International Market

The global consumer goods market is one of the most complex and multi-layered markets, utilizing many supply chain networks daily. Chinese-made exports comprise roughly 35% of the global consumer market, and this figure is only likely to continue increasing given China’s advanced manufacturing and technical abilities. This study develops the framework to analyze the risks of Chinese manufacturers exporting their products to the international markets and ultimately categorize each identified risk factor. Moreover, the Interpretive Structural Model (ISM) is employed to establish a hierarchical relationship between the risk factors, whereas the MICMAC method is used to analyze the categorical nature of each risk factor. Of the nine risk factors identified, two (New Competitors, War and Geopolitical Conflicts) resulted in the highest “V” risk rating, while one (Consumer Behavior) of the nine risk factors identified represented the lowest level “I” of risk. Prospective Chinese manufacturers that are looking to export consumer goods can use this research to aid in mitigating certain risk factors associated with entering the international market.