Made for China

An up-to-date survey reveals that the time when China served German companies simply as an extension of their workbench is long past: 87 per cent of the firms operating in the Middle Kingdom name the growing local demand as the main engine of growth. In line with this, 83 per cent regard the development of new products specifically for the Chinese market as crucial to their success in the next five years, according to a survey carried out by the German chamber of commerce in China, together with management consultancy Staufen AG, across more than 500 companies. The German firms operating in China are focusing on the needs and requirements of their customers on the spot, and particularly on their level of satisfaction with the products and services provided. More than one out of two companies is therefore actively adapting its goods to the Chinese market, while one in three is going for the development of completely new products. “German companies have learnt that simply transferring products ‘Made in Germany’ one-to-one onto the Chinese market just doesn’t work,” says Dr Ulrich Frenzel, research and development expert at the Staufen AG management consultancy. “The requirements of customers in the Middle Kingdom are quite clearly different from those of European customers. And that applies equally to consumer and investment goods industries alike.”