Fifty years ago, China started a project known as The Great Leap Forward. It was a social and economic plan organized by Chairman Mao Zedong (Tse-Tung) to rapidly transform Mainland China from a primarily agrarian economy into a modern, industrialized communist society. It failed in both economic and humanitarian terms, resulting in at least 14 million deaths caused by famine.
A half century later a new great leap forward is progressing quietly and without fanfare as Chinese companies are embarking on new product designs of their own without waiting for cues or direction from Western companies.
What's Different Now?
At the risk of oversimplification there are several quick explanations. There are growing numbers of young, technically educated Chinese nationals who formerly would have pursued technical careers outside of China and they are remaining there. There is an apparent critical mass of domestic consumers to support a growing economy built on increasingly more sophisticated products and services. And finally, these elements are developing in response to market demand rather than government decree.
Challenges in the Chinese Market
Chinese manufacturers will likely initially focus inwardly on supplying developing Chinese domestic demand and outwardly to supplying foreign markets that can use their goods and services. Clearly, there are many challenges on the horizon for business in China. Here's a short list:
One thing that each of the above scenarios has in common is that they revolve around considerations beyond the control of individuals and businesses in the West. While they merit some level of awareness and attention, they are not the primary focus of product development in the Western world. Rather, the focus shifts to factors we can control.
What Western Product Developers Control
In short, Western companies must "own" the relationship with their customers. At the very least they should be able to meet customer needs and exceed or anticipate them where possible. With typically higher overhead operations, Western product developers must work smarter and continue to deliver value to customers.
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