Nation’s vast market a lifeline for consumer goods providers
Consumer goods providers will continue to regard China as a key market, given its immense size and potential for driving growth, particularly amid a global decline in investment sentiment, said senior executives of German companies.
The corporate leaders remain dedicated to expanding their presence in China, which includes introducing the latest products into the country, investing in innovative activities and engaging in various trade shows, reflecting continued investment in enlarging their brands’ footprint across the world’s second-largest economy.
Expressing optimism about the Chinese market, Siegmund Dukek, managing director of Leica Camera China, highlighted its importance to the German company. He emphasized that Leica is committed to expanding its presence in China with each passing year.
“With the rise of outdoor sports and the recovery of the tourism industry, Chinese consumers’ demand for cameras has shown a soaring trend, and our new cameras such as the Leica SOFORT 2 and SL3 have triggered an enthusiastic response in the Chinese market,” said Dukek.
“We are very pleased to see the potential of China’s consumer market, so in addition to our camera business, we are actively expanding our other business areas to meet the different needs of China’s high-end consumer market,” he said. “For example, the Leica Cine 1 laser television and Leica watches are new products introduced for consumers pursuing a quality life in the nation.”
Apart from a product strategy that is tailored to Chinese consumers, Dukek said his company has made plans to increase its investment in the Chinese market by opening new stores in major cities.
After adding a new store in Nanjing, Jiangsu province, in March, Leica is looking for opportunities to explore other major city markets like Wuhan in Hubei province in the coming months.
“We are confident that this charming land will provide us with immense energy and allow us to discover more surprises and opportunities,” he added.
This view was shared by Hubert de Haan, senior vice-president and chief sales and marketing officer for China at BSH Home Appliances Group, another German manufacturing company. “We are expecting double-digit growth in sales revenue in the Chinese market this year and we will continue to bring the latest global products to China and promote the nation’s innovative products to the global market.”
“Three decades ago, we only had a few products manufactured in China, with most being imported. Today, the vast majority of our products are developed and manufactured in China,” he said, stressing that this trend will gain momentum in the coming years.
Currently, all BSH Home Appliances’ localized products are developed and produced in seven factories across China, with a number of them exported to global markets each year.
Acknowledging opportunities brought by China’s pursuit of new quality productive forces, German life sciences company Bayer said it is bullish on China’s innovative business environment and will continue to enhance investment in the country.
“The new quality productive forces are an important concept. It is easy to develop something by just spending a lot of money, but if you are looking to develop in a way that is more sustainable, both from a financial standpoint and an environmental standpoint, you have to find other sources of development,” said Bill Anderson, CEO of Bayer.
Bayer’s consumer health business plans to establish a China center for innovation and partnership in Shanghai this year. In collaboration with local partners, the center seeks to explore emerging technologies to bring more innovative products into the market.
The group said that the center, backed by an investment of 20 million euros ($21.65 million), will enhance Bayer’s capacity for innovation, potentially generating 1 billion euros in commercial value through innovation partnerships over the next decade.
Moreover, Bayer’s crop science unit commenced the construction of a new supply center in Hangzhou, Zhejiang province, in 2023, with an investment exceeding 300 million yuan ($41.5 million). It will be operational within this year.