Abstract

This paper analyses product strategies adopted by Italian companies in the Chinese market, particularly with regard to adaptation policies. The purpose of this study arises from the perception of the cultural distance that characterizes this market, where there are macroeconomic, social and cultural specific and peculiar aspects to be considered, if compared to the Western ones. The main objective was to assess whether Small and Medium Italian companies (Smes) adapt their products in order to make them more suitable to the demand of Chinese customers and, if so, to identify the specific factors submitted to adaptation, the changes, their pervasiveness, and the reasons underlying the decision to adapt. In some cases the adaptation dilemma is a decision to take when you have to cope with certain mandatory conditions; in other cases it is a discretionary choice of the company considering market opportunities and their strategic importance. Smes should compete in international markets having limited resources and skills that we normally think they overcome using speed, flexibility and greater adaptability. Through an empirical study on a sample of Italian Smes, operating in the Chinese market, we have tried to identify the main behavioural trends in deciding if adapting the product to the foreign market.