Imedco Technology – Adapting to the Challenges of a Changing Market

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Case Study| 10 July 2016

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European manufacturer of shielding products for clinical MRI and scientific research, Imedco Technology first accessed the Chinese market in 2004, attracted by the significant potential of the local market. Shortly after establishing a Joint Venture with a Chinese partner, the company encountered problems with IP protection, and eventually moved to establish a WFOE two years later.

While its factory in China was initially set up with the intent to serve the Chinese market, the price sensitivity of many Chinese customers as well as the different sales channels through which business is conducted in China has meant that 80% of Imedco’s production in Shenzhen is now exported to other markets in Asia. Fortunately, some changes in the Chinese market, and government funding for research in particular, indicate potential for premium products.

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