Domestic competition has become one of the major challenges for foreign companies in China, tells author Joel Backaler at the Carnegie-Tsinghua Center in Beijing. And those challenges now prepare to go global. A few summaries from his speech.
A Changing China: Backaler explained that China’s reputation as the world’s factory is changing due to its growing domestic consumer market. Western companies in China now face competition from domestic firms in China. Backaler noted that 41 percent of China-based multinational executives he interviewed listed intensified local competition as a top concern in 2014. The increasingly competitive domestic market in China is why Chinese companies are now looking West. …
Next Steps for Chinese Companies: Backaler recommended that Chinese firms delegate more autonomy to overseas branch offices in order to establish stronger relationships with overseas employees. In addition, Chinese companies should invest in public relations to improve the image of Chinese companies and Chinese products. Public relations will also enable more strategic marketing and branding in order to increase the name recognition and brand strength of such companies.
More at the Carnegie-Tsinghua report.
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