Taking Your New Invention To the Chinese Market - Pros and Cons
Posted: Monday, September 14, 2009
by Amy Green
Innovate Product Design
When deciding where to market their new product ideas and inventions, many UK entrepreneurs choose to stay within Britain, the USA and perhaps a few nearby European countries. Whilst such a strategy can often make sense to begin with - it's never a good idea to take on more than you can handle, particularly if you are new to the industry - it can also be very worthwhile to explore the possibility of marketing an invention further afield. This article discusses the pros and cons of marketing new inventions and product ideas in one of the world's most rapidly developing nations, China
Though the growth rate of the Chinese population is slowing as a result of the one-child policy, families are becoming increasingly wealthy in line with the development of the wider Chinese economy. China has been categorised by the World Bank as an emerging economic market undergoing a rapid period of expansion, morphing from a developing nation to a developed, industrialised powerhouse. According to both the International Monetary Fund and the World Bank, China has the 3rd highest gross domestic product behind only the USA and Japan. This means that the income generated for China by the goods and services they sold in 2008 was the 3rd highest in the world. Consequently, people living in China have much higher levels of disposable income than they have ever had before, and they are willing to spend it. The average urban Chinese household spends 14.4% of its income on recreational and technological items, 11.1% on transportation and communication devices, 9.8% on clothing and clothing accessories and 4.2% on homewares. As such, there is a huge market out there for new products with people willing to spend significant proportions of their disposable income.
In Chinese society, products from or inspired by the West are often viewed as status symbols, indicating wealth and prosperity. According to Chan Den of the Shandong University School of Management, playing up a product's Western origins can increase its attractiveness to consumers and help it to become the next 'must have' item. This is partially a consequence of so-called 'cultural imperialism' - Western cultures and values, particularly those of the US, are becoming more dominant with people the world over attempting to emulate the American and British way of life. As a result, new products and inventions by British entrepreneurs may find success in these markets.
However, approaching China may not be right for every invention. Despite the increasing similarities between Western and Eastern lifestyles and the high status of American and British products in the region, there are still many differences between these cultures and as such, new inventions may not catch on for a variety of reasons. Furthermore, there is still a significant communication barrier and some ideas may simply be lost in translation. It is therefore very important to do some good market research to identify whether the product would fit into the lifestyles of those living in China, how the existing market relevant to your invention operates and who your invention should be targeted at within the country.
It is fundamental that your invention is fully developed and has the relevant intellectual property protection to ensure the idea legally belongs to you. For help with this, you can contact companies such as Innovate Product Design who can guide you through the process.
Best of luck!
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