Across the world, introducing a brand-new product to the market was once a monumental task. However, at the China International Import Expo (CIIE), a major international event held in Shanghai in November each year, the brand growth cycle that used to be measured in years has been fast-tracked into just days. The trend, experts said, demonstrates the growing confidence of multinational companies in how the Expo has evolved over the years into a global platform for foreign trade. It also shows the high expectations of multinational companies (MNCs) that the larger Chinese market will also benefit from the spillover effect to amplify their market presence in China and beyond.
Japanese cosmetics firm Shiseido saw its exhibits turn into commodities and then into bestsellers in the Chinese market, said Toshinobu Umetsu, President and CEO of Shiseido China. The company debuted many high-end brands, including The Ginza, Baum and Effectim, at previous CIIEs and these brands were able to quickly enter the China market. Thanks to the enduring impact of the expo, The Ginza also opened its first exclusive shop in Beijing and a boutique in Shanghai. Both are the first of their kind outside of Japan and duty-free channels. Umetsu said: “China today is leading the way in the application of innovative technologies, and understanding the latest innovation trends in China is key to capturing future growth opportunities.” Shiseido, which came to China during the early period of the country’s reform and opening-up as the first foreign beauty group to enter the Chinese mainland, has been present in the country for over four decades.
Chinese Premier Li Qiang pledged at this year’s CIIE to further expand opening-up and turn China’s vast market into great opportunities for the world. If the first CIIE was a one-way invitation from China to the world, then each subsequent edition has become a mutual commitment between China and the world, reflecting the shared aspiration for opening-up and cooperation, the Premier said. Li stressed the need to strengthen consensus on opening-up, adding that all parties should jointly adhere to the international economic and trade order as well as rules. They must also earnestly fulfill multilateral and bilateral economic and trade agree- ments, he added. China will further expand institutional opening-up and actively align with high-standard international economic and trade rules, Li said, pledging efforts to upgrade pilot free trade zones. Li said the country is willing to open up its enormous market further, including implementing its unilateral opening-up policy and offering zero-tariff treatment for all tariff lines from least developed countries, and effectively turn the huge market into great global opportunities.
The Expo’s transformative potential has not been lost on German software and cloud giant SAP, which is doubling down on its presence in China. Michael Locher-Tjoa, SAP’s global Vice President and Chief Business Officer for Greater China, said China is one of the “key markets” for SAP, and definitely an important place for the company to strengthen its presence and grow further. “Many of our multinational customers are doing business in China and a significant number of them on a large scale. It reflects their expectation that the growth from the market would be huge,” he said. He added that China has been moving fast in many emerging sectors like new energy over the years and has witnessed rising engineering capabilities in various sectors. “As multinationals further invest and grow their business here, SAP will help them grow and have a more sustainable business going forward,” he added.
Zhang Yansheng, Chief Researcher at the China Center for International Economic Exchanges, said: “The fact that the CIIE is organized every year demonstrates that China honors its commitment to high-level opening-up and is sharing its development dividends with others to shore up globalization. “The world is in urgent need of more trade and increased demand to revive the staggering economic recovery, as well as communication to reach consensus and repair global industrial and supply chains,” he said.
Despite subdued global investment sentiment, multinational companies are confident about investing in China and firmly believe innovations can represent the most significant growth opportunities for them in the Chinese market, said Zhou Mi, Senior Researcher at the Chinese Academy of International Trade and Economic Cooperation. “The stable development of the Chinese market is not only to achieve the country’s own development goals, but can also create more value for the international community,” Zhou said, as reported by the China Daily.
