Product Adaptation

Some Chinese products entering European markets may need to be modified or improved for all sorts of reasons, but the principal demand for adaptation are threefold:

  • Socio-cultural (consumer behaviours, tastes, preferences and cultural identities)
  • Legal /regulatory (EU health and safety standards, quality assurance and compliance)
  • Competitiveness (brand differentiation, avoiding commodity status, managing price sensitivity)

CEMS 360° can identify initial adaptation requirements through Quick Scan product research before a Chinese company starts to import its goods to Europe. This research will provide useful information about whether the product needs minor or major adaptation.

Either way, adaptation will involve a cost of modification (e.g. research, production and process changes ) that need to be weighed against forecast sales turnover and margin improvements in the target European market.

To assess the impacts of modification, CEMS 360° provides Chinese companies with a Product Adaptation Cost-Benefit Analysis (PACBA) to compare the likely improvement in sales turnover and profit levels with the additional costs involved.