An adapted taste and appearance of the product is very important in China. It’s crucial to understand that supply in China (even without considering foreign manufacturers) greatly exceeds demand, so Chinese consumers will buy your product only if it is familiar or recognizable. You may even have to ship your first batch without a buyer in place, and only later find buyers, since no one will purchase an unknown product. Besides product recognition, price is also a major factor—though the price doesn’t always need to be low. Together with Business Panda—a company that helps Russian brands enter the Chinese market—let’s explore these and other nuances of product adaptation.
The Right Start Matters
No one plans to adapt recipes and packaging for the Chinese market at the initial stage—“let’s wait for sales, and then we’ll see.” But the sales won’t start. Analyzing competitors and prices, working out terms with clients (especially shelf life and “entry ticket” costs), conducting focus groups—all this is often considered “too expensive.” It’s unlikely you’ll succeed with a cheap approach.
Be prepared to create packaging specifically for Chinese consumers.
Bringing products with a shelf life of less than 12 months into China is too risky. As soon as the product passes halfway through its shelf life, most major buyers will turn away, and small retailers will only agree to take it at a price below your cost. Registering each SKU in a retail network costs 20,000–50,000 yuan (200,000–500,000 rubles). You can cover these costs only with significant sales volumes, which are possible only with preliminary adaptation of your product’s packaging and taste for the “Chinese eye” and “Chinese palate.” Virtually no one manages to enter the market “at low cost.”
What Else to Consider
First, location and the product’s name in Chinese are important. There are also specific issues related to the Chinese mentality. What seems attractive to a Western consumer may be completely foreign and unclear in China. Don’t overlook details such as color schemes, which can evoke entirely different associations for Asian buyers.
In China, you’ll be up against the world’s toughest competitors, unpredictable consumer behavior, high market entry costs, and a shortage of resources—namely, experience and competent professionals.
A focus group is a clear way to learn what Chinese end consumers think about your product. Research can be performed independently or as part of market analysis. With focus groups, you establish axioms, formulate hypotheses, and then test them through quantitative analysis, evaluating the very product you wish to introduce to China.
The Right Start Matters
No one plans to adapt recipes and packaging for the Chinese market at the initial stage—“let’s wait for sales, and then we’ll see.” But the sales won’t start. Analyzing competitors and prices, working out terms with clients (especially shelf life and “entry ticket” costs), conducting focus groups—all this is often considered “too expensive.” It’s unlikely you’ll succeed with a cheap approach.
Be prepared to create packaging specifically for Chinese consumers.
Bringing products with a shelf life of less than 12 months into China is too risky. As soon as the product passes halfway through its shelf life, most major buyers will turn away, and small retailers will only agree to take it at a price below your cost. Registering each SKU in a retail network costs 20,000–50,000 yuan (200,000–500,000 rubles). You can cover these costs only with significant sales volumes, which are possible only with preliminary adaptation of your product’s packaging and taste for the “Chinese eye” and “Chinese palate.” Virtually no one manages to enter the market “at low cost.”
What Else to Consider
First, location and the product’s name in Chinese are important. There are also specific issues related to the Chinese mentality. What seems attractive to a Western consumer may be completely foreign and unclear in China. Don’t overlook details such as color schemes, which can evoke entirely different associations for Asian buyers.
In China, you’ll be up against the world’s toughest competitors, unpredictable consumer behavior, high market entry costs, and a shortage of resources—namely, experience and competent professionals.
A focus group is a clear way to learn what Chinese end consumers think about your product. Research can be performed independently or as part of market analysis. With focus groups, you establish axioms, formulate hypotheses, and then test them through quantitative analysis, evaluating the very product you wish to introduce to China.
What Does Adapting Your Product for China Give You?
Actions to take:
Actions to take:
- Analyze demand; conduct consumer testing on control groups.
- Study both foreign and local products and analogs that are successfully sold in China.
- Check compliance of product composition with Chinese sanitary regulations and legislation.
- Define product and brand positioning, and set prices considering market specifics, consumer mentality, and taste preferences in China.
- Develop unique design, packaging, and ad materials.
- Understanding Chinese consumer preferences and how the taste and appearance of your product/packaging are perceived by end users.
- Product improvement recommendations to increase consumer satisfaction.
- Clear understanding of effective product positioning.
- A product and packaging adapted for the Chinese market.
Examples of Adaptation by Popular Brands
Oreo Cookies
Chinese supermarket shelves are overflowing with Oreo cookies—offered in various flavors, fillings, and sizes. To become one of the top sweets among Chinese consumers, the American company had to put in significant effort. For five years after market entry, sales in China remained low because the brand was not adapted for the market.
To improve the situation and boost sales, the company conducted testing and found two turn-offs for Chinese consumers: taste and price. The cookies seemed too sweet, and at 72 cents for 14 pieces, too expensive. The company developed 20 prototypes with less sugar and tested them on focus groups to find the optimal recipe.
The issue of a too-high price was solved by releasing smaller packs at 29 cents. To keep interest in Oreo high and attract more consumers, the company introduced various new products: Mini Oreo, cookies with such exotic (for Americans) but popular (for Chinese) flavors as green tea, mango, orange, and coconut. The result was not long in coming.
Coca-Cola
The saying “A ship sails as you name it” is well-understood by Coca-Cola marketers. After research, the company realized that the right Chinese translation would not only need to match the pronunciation but also create an appealing meaning. The resulting choice, 可口可乐 (Kěkǒu Kělè), not only sounds similar to the original but literally means “tasty and fun,” which perfectly reflects the company’s values.
However, it is a mistake to think that Coca-Cola’s success is owed only to its name (though that shouldn’t be underestimated). The company paid close attention to the current interests of the Chinese. Back in 1979, as it was starting out in China, the company sought to understand Chinese sentiments and learned that most wanted to present a modern, developing country rather than the old “dragons and lanterns” image—a role well suited to a company whose drink in the West was associated with progress and modernity.
Oreo Cookies
Chinese supermarket shelves are overflowing with Oreo cookies—offered in various flavors, fillings, and sizes. To become one of the top sweets among Chinese consumers, the American company had to put in significant effort. For five years after market entry, sales in China remained low because the brand was not adapted for the market.
To improve the situation and boost sales, the company conducted testing and found two turn-offs for Chinese consumers: taste and price. The cookies seemed too sweet, and at 72 cents for 14 pieces, too expensive. The company developed 20 prototypes with less sugar and tested them on focus groups to find the optimal recipe.
The issue of a too-high price was solved by releasing smaller packs at 29 cents. To keep interest in Oreo high and attract more consumers, the company introduced various new products: Mini Oreo, cookies with such exotic (for Americans) but popular (for Chinese) flavors as green tea, mango, orange, and coconut. The result was not long in coming.
Coca-Cola
The saying “A ship sails as you name it” is well-understood by Coca-Cola marketers. After research, the company realized that the right Chinese translation would not only need to match the pronunciation but also create an appealing meaning. The resulting choice, 可口可乐 (Kěkǒu Kělè), not only sounds similar to the original but literally means “tasty and fun,” which perfectly reflects the company’s values.
However, it is a mistake to think that Coca-Cola’s success is owed only to its name (though that shouldn’t be underestimated). The company paid close attention to the current interests of the Chinese. Back in 1979, as it was starting out in China, the company sought to understand Chinese sentiments and learned that most wanted to present a modern, developing country rather than the old “dragons and lanterns” image—a role well suited to a company whose drink in the West was associated with progress and modernity.
About Business Panda
Business Panda is the operator of the "Russian Commodities Pavilion" project in Chengdu, Sichuan Province, PRC—one of the largest platforms, uniting over 1,000 Chinese trading agents.
The Russian Commodities Pavilion is a platform for efficiently bringing Russian brands’ products to the Chinese market and for building cultural, economic, regional, and intergovernmental ties. The project is implemented with the support of the Chengdu Bureau of Commerce (PRC).
Business Panda LLC wishes you a successful start and great sales volumes in the Chinese export market.
Business Panda is the operator of the "Russian Commodities Pavilion" project in Chengdu, Sichuan Province, PRC—one of the largest platforms, uniting over 1,000 Chinese trading agents.
The Russian Commodities Pavilion is a platform for efficiently bringing Russian brands’ products to the Chinese market and for building cultural, economic, regional, and intergovernmental ties. The project is implemented with the support of the Chengdu Bureau of Commerce (PRC).
Business Panda LLC wishes you a successful start and great sales volumes in the Chinese export market.