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Economy

What upgrades can Chinese enterprises achieve when going abroad, no longer relying solely on price competition?

2024-04-17   

"We have been installing fully automatic car wash machines in China in recent years, and entered the Thai market at the beginning of this year." Tang Xiaodong, President of Kah China in Germany, told First Financial that after several years of independent development, Kah China's products are gradually moving towards neighboring countries. At this year's China International Consumer Products Expo (hereinafter referred to as the "Consumer Expo"), Chinese R&D and Chinese brand going abroad have almost become the "standard equipment" for domestic and foreign exhibitors. For example, the car washing equipment and solution developed by the Kach China team, mainly targeting the needs of the Chinese market, was showcased through virtual videos at this year's Consumer Expo, taking China as the starting point and moving towards larger markets such as Southeast Asia. This is also the first time that Kah has installed a product developed by a Chinese team in overseas markets, becoming a high-end intelligent manufacturing case where "Chinese intelligence" replaces the German headquarters in developing products and exporting them globally. With the reshaping of the global value chain and the transformation and upgrading of China's supply chain, Chinese enterprises and products are increasingly transitioning from being made in China to being internationalized by Chinese technology and brands. This means that the industry and product categories included in the overseas market are becoming increasingly diversified, and "going out" has also added a more multidimensional and rich connotation of "internationalization". In addition to the aforementioned Chinese research and development, Chinese brands that benefit from the advantages of Chinese manufacturing have also accelerated their overseas expansion, and are striving to find sustainable global opportunities while standing firm in the complex and ever-changing international trade environment. Ernst&Young's "2024 Consumer Goods Industry Trend Insights" released at this year's Consumer Expo summarized the new highlights and trends of China's consumer goods industry as the "5G New Era", with "G" referring to "Go Green - Practice Green", "Growth - Sustainable Development", "Global Footprint - Global Footprint", and so on. "It's not just China selling globally, but a very certain trend at present is global sales." Zhang Kuao, President of Alibaba International, a Chinese B2B cross-border e-commerce platform, pointed out that whether it's overseas market factors or some non market factors, a large number of vertical categories are choosing a global layout. On the one hand, China's production lines and supply chains are moving towards Southeast Asia, South America, and even Europe; On the other hand, from the perspectives of consumers and buyers, they also need more diverse products from around the world, which puts higher demands on Chinese companies to find richer supply for consumers worldwide. In order to expand into overseas markets, Yao Dong, the head of a children's clothing foreign trade enterprise in Huzhou, who just returned from an investigation in Southeast Asia in late March, will visit there again in late April. "This time, we will mainly go to recruit people and connect with local e-commerce platforms.". In just a few months this year, he has secured a 5000 square meter office area and the entrance to the largest clothing wholesale market in Southeast Asia, and is currently working hard on decoration and recruitment. Although it plans to establish a foothold in the local market through wholesale, its exported clothing is sold under independent brands. Choose to keep R&D and design in Huzhou Weaving, the "children's clothing capital", and let manufacturing internationalize with the market

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