A US business expert is urging Chinese companies to do more in carrying out market research and improving product quality.
Lloyd Shefsky, an expert in entrepreneurship who traveled frequently to China to give related lectures over the last few years, said, "There is obviously a reduction in consumer demand in the U.S. as a result of the economic slowdown."
He said the scenario is "bad for the Chinese companies who are making many of the things for U.S. consumers."
Shefsky, co-director of the Center for Family Enterprises at Northwestern University’s Kellogg School of Management, said: "The demand might come back in some way but it will probably be different. If the Chinese companies simply sit around and get whatever capitals or expenses they need to stay alive until the next round, that won’t do it."
He said China is in a very different situation now as compared with a few years ago, as it is no longer the lowest cost provider.
He said, "My best advice to Chinese companies is not to rely totally on U.S. companies to do the marketing for them. They have to have hands on and personal involvement."
China View reported Shefsky as saying that Japanese auto companies had paid a lot of attention to market research, and as a result, they did a super job in designing cars that suit Americans. The Japanese also did a wonderful job in manufacturing too, which Chinese and American companies can certainly learn from.
He said, "Market research is expensive, difficult and uncertain. So you spend a lot of money, time, efforts and brainpower and you don’t have immediate outcome. But it is far better than guessing."