Innovation in China

It is globally accepted that China has recently become a global place for innovation. More European entrepreneurs and existing brands go to this country to implement ideas and attract local customers. Companies seek to find innovative ways of running a business more effectively. As long as China is becoming a global economy with a highly competitive environment, it is vital to know innovative methods and techniques, which will work in China and help businesses to develop. What makes the difference for innovation in China?

Deep understanding of Chinese customers

It is broadly accepted by many foreign brands, which have a long presence in China, that understanding of Chinese customers is important. As the experience of many European companies shows, marketing techniques, which had worked in Europe, did not prove to be effective in China. Market researcher ties this phenomenon to a difference between Western and Eastern cultures. Therefore, it is vital to know Chinese culture and consumption habits of the Chinese, before settling in the country.

Innovation in China involves ability for taking risks

Innovation is a risk itself. It does not give guarantees that a released product or strategy will work in the future or bring good revenue. Moreover, it can be difficult to predict the outcome of innovation specifically in a rapidly changing economic environment of China. However, as well as risk, innovation implies a reward. These two notions are positively correlated: the higher a taken risk, the higher a resulted reward if a strategy works. Therefore, innovation implies flows of new ideas and frequent application of new techniques, which allow finding out which one is effective.

Giving high priority to collaboration and cooperation

It is vital to understand the importance of interaction between employees. Team work tasks and group activity may prove to be more productive and result in a greater flow of new ideas that if each works individually.

Attracting and retaining talented workers

Employee turnover is one of the largest problems mentioned by entrepreneurs doing business in China. It’s corporate culture corporate responsibility is still on developing stage, workers do change jobs frequently if there is a better opportunity or they do not act responsibly in accordance with legal commitments. Therefore, it is highly advised to retain talented employees by means of various motivational bonuses and rewards.

Objectives and internal activities must be aligned

It is vital that a company aligns its activities with targets. For example, if a company decides to implement promotional campaign by means of writing observable articles on market trends, it is necessary to have an employee, who has intellectual and time resources to implement this target.

Daxue Consulting can provide you support in understanding the Chinese market. We conduct all the market research and consulting services you may need, such as potential analysis, cost analysis, implementation feasibility etc. Do not hesitate to contact our dedicated project managers by email at dx@daxueconsulting.com.