Haven's innovation source first show
Multinational companies anchor three major roles in the Chinese market
Our reporter Zhu Lin
Affected by the new crown pneumonia epidemic and other unfavorable factors, global trade and investment have suffered heavy losses in 2020, the world economy has fallen into a deep recession, and corporate development is facing huge challenges.
Despite the increased instability and uncertainty of the external environment, in the context of China's overall planning of epidemic prevention and control and economic and social development, continuous deepening of opening up, and active efforts to relieve foreign-funded enterprises in resuming work and production, these multinational companies have The development has not stopped, but has become a highlight of the world economy this year. The Chinese market plays a more important role in the global business of multinational companies.
Safe haven, source of innovation, and first show are the three keywords for multinational companies' business development in China.
haven:
Drive strong performance growth
This year, the revenue of many multinational companies, including the Fortune 500, has fallen off a cliff.
Thanks to China taking the lead in effectively controlling the epidemic and quickly resuming work and production, the Chinese market has become the only profitable market for some multinational companies in 2020.
"The Wall Street Journal" reported that China is a safe haven for many companies around the world.
The US jewelry brand Tiffany Group’s third-quarter performance report showed that in the first nine months of this year, Tiffany Group’s revenue fell 24% to US$2.31 billion.
During the period, the group's revenue in the United States, Japan, Europe and other regions all fell to varying degrees, and the Asia-Pacific market, where China is located, became the only growth region, with revenue rising 30% to US$382 million.
The group said that the Chinese market continued its strong performance this year, offsetting the decline in Europe and the United States.
The L'Oréal Group’s financial report for the first three quarters of 2020 announced in October showed that group sales during the period fell by 7.4% year-on-year, but the Chinese market achieved strong growth.
The financial report shows that as of the end of September, the Chinese market achieved a year-on-year growth of 20.8%, far exceeding the market average.
In different distribution channels and categories, the speed of recovery varies significantly.
Among them, the growth situation of offline channels and high-end cosmetics market is particularly encouraging.
According to data released by Nissin Foods, in the three months ending June 30, 2020, the controlling shareholder Nissin’s business income in China was 11.512 billion yen, a year-on-year increase of 19.5%, and operating profit was 1.607 billion yen. A year-on-year increase of 91.6%.
The performance of the auto industry is particularly outstanding. The significant recovery of the Chinese auto market has led to a strong rebound in the performance of global auto companies.
The three quarterly report, which was called the "best in history" by Tesla CEO Musk, showed that during the reporting period, Tesla's revenue increased by 39% year-on-year to $8.771 billion, achieving the highest quarterly revenue level in history and net profit For 331 million US dollars, an increase of 131%.
Among them, the Chinese market has become an important source of profit for Tesla.
While handing in a beautiful "transcript", Tesla continued to clarify the goal of delivering 500,000 vehicles in 2020, and pinned its hopes on the Chinese market, believing that whether the goal can be achieved "mainly depends on Model Y and the Shanghai factory The month-on-month increase in production".
According to data released by Honda Motor of Japan, as of November this year, Honda’s total sales in China reached 171,000, setting a new monthly sales record for five consecutive months.
Recently, the three major German car companies Volkswagen, BMW and Daimler announced their key investment and development plans for accelerating electrification and digital transformation in the next five years.
In the context of China's strong economic recovery, all three auto companies expressed their optimism about the Chinese auto market and actively participated in the development of China's new energy auto industry.
Innovation source:
Speed up the layout of the innovation center
China's open market and good business environment provide multinational companies with fertile soil for deepening China, while China's innovative atmosphere, human resources and investment environment provide them with important opportunities for a broader market and sustainable development.
On May 19th, Honeywell's Emerging Market Headquarters and Innovation Center was established in Wuhan.
This is the first Fortune 500 company to establish a wholly-owned subsidiary in Wuhan after the epidemic.
Boehringer Ingelheim, Germany, announced the establishment of a digital innovation laboratory in Shanghai in March this year, and launched the China External Innovation Cooperation Center in Shanghai in July.
The company promised that in the next five years, it will continue to increase its investment in China, devote itself to the development of breakthrough new generation therapies, and invest in biopharmaceuticals, animal health and health innovation.
As Starbucks’ largest productive strategic investment project outside the United States, Starbucks China’s "Coffee Innovation Industrial Park" officially broke ground on November 16. After the completion of the industrial park, it will become one of Starbucks’s greenest coffee roasting plants in the world.
On December 3, the Joint Innovation Center and Qualcomm Artificial Intelligence (AI) Innovation Laboratory established by the Hangzhou Future Science and Technology City Management Committee of Zhejiang, Qualcomm (China) Holdings Co., Ltd., and Zhongke Chuangda Software Co., Ltd. were inaugurated in Hangzhou. Put into use, the Joint Innovation Center focuses on the technical application requirements of 5G, AI, Internet of Things and other fields, and provides support for Hangzhou "double innovation" enterprises and institutions.
Meng Pu, Chairman of Qualcomm China, said: “Qualcomm is very optimistic about Hangzhou’s development prospects in cutting-edge industries such as 5G, AI, and the Internet of Things. It hopes to continue to strengthen its cooperation with the Joint Innovation Center, Qualcomm AI Innovation Lab, and accelerator projects. The cooperation of Hangzhou governments at all levels and industry partners has contributed to accelerating the innovative development of Hangzhou and its domestic partners in the fields of 5G, AI, and the Internet of Things."
First show:
New products target the Chinese market
With China's scientifically coordinating epidemic prevention and control and economic and social development, it has vigorously promoted the restoration of production and living order, market vitality has increased, and the supply and demand relationship of imported goods has gradually improved.
Especially under the special background of the global fight against the epidemic this year, the 3rd China International Import Expo was held offline as scheduled, and many multinational exhibitors rushed to present new products of "world premiere, first show in Asia, and first show in China". It fully shows that participating foreign companies attach great importance to the Chinese market with diverse consumer groups and huge consumption potential.
For example, at this CIIE, ABB launched the HoverGuard drone-borne natural gas leak detection solution for the world's first; France's Decathlon launched an inflatable kayak sports product for the world's first; Matsushita Electric combined with its health products in the post-epidemic era The world’s first "Six Constant Climate Station" system was launched to meet the needs of the world; Unilever, one of the world’s largest fast-moving consumer goods companies, launched its skin-friendly products for the first time.
"While the epidemic is still spreading, this grand gathering of global resources and leading technology has shown the world the courage of China to pursue a higher level of opening up and the vitality of the Chinese market, and its results will surely benefit the world." Said Xiang Weiming, President and CEO of Electric Company (GE) China.
Foreign companies have cast a vote of confidence in China with practical actions. The fact that companies from various countries continue to be optimistic about the Chinese market once again shows that China's persistence in opening up to the outside world at a high level and its commitment to providing opportunities for the common development of all countries is gaining more and more recognition from the international community .
Our reporter Zhu Lin