Product customisation is rapidly becoming a must-do for international businesses in China.
These companies must not only offer products and services at the international level, but also customise them to the idiosyncrasies of the Chinese market. The most important reasons for customisation/localisation are: development differences between China and the West; consumers' lower sophistication/higher practicality; and the regional differences within China.
Firstly, sellers must deal with the reality that the Chinese market's development is not at the same maturity as the West; products in China can still be one or more development cycles behind.
Secondly, local customers are not demanding the latest technology in many areas, apart from consumer electronics. What Chinese customers need are products that match their practical requirements and are easy to maintain.
The third major factor that necessitates localisation in China is the regional difference. Successfully selling to China requires multiple strategies that take into account geographical purchase patterns and income variances in order to segment customers and cater to different needs.
While local production and proximity to customers may have guaranteed success in the past, increasingly, many international companies follow the theme "Design in China, Make in China, Sell in China" to cater to local needs.