Product development is the process by which companies improve old products or develop new products so that they have new features or uses to meet market needs.

Because people's needs are constantly changing and improving, companies can only adapt to the ever-changing needs of consumers by continuously improving products, adding features and functions, improving product quality, and improving appearance packaging. [1] For example: the invention of the electric light, the renewal of car design, the innovation of eating style, the addition of anti-dandruff function to shampoo, inverter air conditioner, etc. In addition, US subprime mortgages are also financial product development, even if they fail, they still fall into the category of product development.

Product development is the basis for the survival of financial institutions. This is the iron law of the market economy.

Product development not only refers to the production of new products, but also refers to the improvement of new products.

Influencing factors

Product development should choose those product styles that can conform to and meet customer needs, and at the same time can be designed and developed products. Product development can bring benefits and profits to the company, and it is the company's competitive advantage in maintaining the market.

The selection of products should consider the following factors:

1. The market potential of the product

2. The profitability of the product

3. Market competitiveness Comprehensively consider the market capacity, whether the products designed and developed can have a competitive advantage, consider the market's competitive weaknesses, and select products that are conducive to the use of the company's core technological advantages for design and development

4. The available resource conditions consider the material, technology, convenience, economy and environmental protection of the product developed and designed

5. Consider the existing technical level and production capacity. In the process of designing the product, fully consider whether the designed product can be produced, whether it can meet its process, and whether the product can be produced with the existing production capacity. If the designed product does not consider its craftsmanship and production capacity, the designed product can only be "talking on paper"

6. Distribution capabilities, sales channels, and market service capabilities

7. National policies, laws and regulations, etc.