China Daily Global Edition (USA)
Shanghai smooths path for global ‘hidden champions’
Openness, innovation and inclusiveness key attractions
In addition to being vast and diverse, China’s market is inherently intriguing and full of potential, making it an enticing prospect for foreign brands. But entering and navigating it and its ever-changing trends necessitate comprehensive understanding and a continual effort to expand brand influence.
At the forefront of China’s reform and opening-up and renowned for its openness, innovation and inclusiveness, Shanghai has become a prime location for foreign hidden champions — innovative small and mediumsized enterprises that specialize in niche sectors — to gain valuable insights into the Chinese market and tap into its boundless opportunities.
‘On the shoulders of a giant’
Jungheinrich, a German intralogistics solution provider, entered China’s forklift industry in 1997, following the lead of its international partners and utilizing the services of local distributors. In 2004, it established a Shanghai-based sales company and in 2013 it built a sprawling manufacturing facility, encompassing 60,000 square meters, which also serves as Jungheinrich’s research and development center for forklifts in China.
In 2018, Jungheinrich settled its Chinese headquarters in Shanghai’s Hongqiao International Central Business District, marking a new milestone in its development. Apart from bringing the latest forklifts to the Chinese market, Jungheinrich inspired the local market with its developments in sustainability, efficiency enhancement and digitalization to support China’s industrial upgrade and transformation.
“Jungheinrich has successfully transitioned from solely importing equipment from overseas to gradually establishing local manufacturing and services, ultimately transforming into a trusted provider of intralogistics solutions,” said Bai Daping, managing director of Jungheinrich China. “We have made significant influence on the Chinese market, contributing greatly to the advancement of intralogistics systems here.”
Bai said Jungheinrich China’s commitment to cultivating partnerships, prioritizing localization efforts and delivering high-quality management and services has been instrumental in the company’s remarkable success. He said partnerships have played a crucial role in establishing a robust ecosystem that supports vital activities like R&D, as well as marketing. Moreover, the strong emphasis on localization ensures the brand is capable of listening and responding to the demands of their clients in an effective and efficient manner.
“We had to develop new markets, new customers, new channels, and further establish brand visibility in the Chinese market,” said Bai. “We needed to expand our brand awareness and demonstrate our strength and achievements to more local clients.”
Shanghai, because of its complete industry chain, business environment and innovative mindset, has played a vital role for the company to implement its strategy in China, Bai added.
“The city serves as a thriving hub for global businesses, providing abundant communication opportunities and exchange platforms. This environment greatly supports decisionmaking processes and fosters creation of a robust business ecosystem,” he said. “Moreover, its strong connections with businesses in the Yangtze River Delta have facilitated our establishment of a locally based supply chain, technical support and production capabilities.”
Bai also lauded the annual China International Import Expo, which has been held in Shanghai since 2018.
“Jungheinrich is an ‘hidden champion’ from Germany. Though we had some success in China before 2018, the company was still not widely recognized in such a big market. Attending the CIIE for six consecutive sessions has generated significant brand influence,” said Bai. “With extensive media coverage and massive attendance at the expo, we feel like we are standing on the shoulders of a giant and are not ‘hidden’ in China.”
Serving as cornerstone
In 2012, engineering and bolting technologies developer Nord-Lock marked its inception in China by setting up a wholly owned subsidiary in Shanghai’s Putuo district. Since then, the company’s unique and innovative wedge-locking technology and multi-jackbolt tensioner have been introduced to the Chinese market.
“At the onset, both technologies were entirely novel to the Chinese clients, necessitating a substantial amount of time to promote their safety and reliability,” said Hu
Daoping, general manager of Nord-Lock China. “Additionally, we had to deal with prolonged delivery periods, high logistics expenses and an absence of a locally based technical support team upon our entry into the Chinese market.”
Shanghai, with its advanced transportation network, premium business environment, strong industrial foundation and professional service system for global investors, thus became an ideal base from which NordLock could address those issues.
“As China’s financial and trade hub, Shanghai enjoys the advantages provided by its geographical location. With outstanding industrial infrastructure, an excellent marketing environment and an abundant talent pool, finding a substitute for this city is a formidable task,” said Hu. “Shanghai serves as a calling card for new businesses, certifying their credibility and contributing to
smoother business operations.”
Since embarking on its Chinese venture 12 years ago, Nord-Lock has made remarkable strides in China. The company’s innovative bolting solutions have found wide application and commendation in areas such as high-speed railways, heavy-load trucks, wind power, hydropower, nuclear power and mining.
Nord-Lock has established itself as a benchmark in the industry, consistently maintaining double-digit growth in annual turnover since its inception in China. In 2020, the company established its regional headquarters in Shanghai’s Putuo district and has since been honored with certification from the Shanghai Municipal Commission of Commerce. In addition, to better cater to the needs of clients, Nord-Lock has set up a dedicated local technical support team to ensure timely and efficient response to customer requests.
In November, the company opened its stateof-the-art “Center of Excellence” technical facility in Shanghai, which includes technical support and training, assembly, warehousing and R&D.
“I am delighted to announce the grand opening of our Center of Excellence in Shanghai,” Norbert Hentschel, APAC sales head for Nord-Lock Group, said at the ceremony. “This occasion marks a significant milestone in our journey toward serving our valued customers with unparalleled excellence. Over the past decade, China has played a crucial role in the strategic growth of the Nord-Lock Group, and we aim to provide even better services to our customers across diverse industries throughout the country and to those in the Asia-Pacific region in the years ahead. As the Nord-Lock China team embarks on this exciting journey, we are sure this center will enhance our ability to meet the diverse needs of the growing APAC region while further strengthening our position as bolting technology global leader.”
Gaining insight
Optic solution provider Hoya Vision Care entered China in 1996 and set up its Shanghai office in 2003 as part of Hoya Group’s expansion strategy to East China.
“We selected Shanghai as our first destination in East China due to the group’s strategic considerations. After analyzing the public and commercial layouts, as well as urban trends, we determined that Shanghai best suited our objectives,” said Sally Li, China managing director of Hoya Vision Care.
Li said that as a vibrant consumption hub, Shanghai plays a crucial role in supporting Hoya Vision Care’s expansion by offering comprehensive market insights and the latest trends. In addition, the city’s well-developed transportation network, exceptional logistics services and strategic geographical location greatly help Hoya’s import and export operations as well as its supply chain management. Hoya also leverages the benefits of collaborating with leading universities and research institutions in Shanghai to support its R&D efforts.
“Shanghai has established itself as a modern city that draws people from around the globe. This vibrant metropolis offers valuable support to Hoya Group by serving as a prominent partner in the Chinese market. Its conducive business environment allowed us to quickly adapt to the Chinese market and receive robust backing for our endeavors,” Li said.
Important international exchange activities in Shanghai, such as the annual CIIE, also support Hoya Vision Care by strengthening communication with its global partners and sharing its latest developments. The company participated in the 2023 CIIE in Shanghai in November for the first time, showcasing its latest products and commitment to the Chinese market.
“Hoya Vision Care displayed the whole life cycle of eye health management solutions and held a launch ceremony for the Hoya China and Shanghai Eye and ENT Hospital Joint Research Project,” said Li. “This event strengthened the connection between Hoya Vision Care and various partners and provided a platform for the industry to share knowledge and experience. The interaction brought new opportunities for innovation and development in the industry.”
Li said Hoya will continue to expand in the Chinese market while strengthening partnerships with leading experts and professional institutions to promote innovation.
“With the continuous expansion of the Chinese market and the continuous increase of investment, Hoya Vision Care’s business in China will continue to maintain a growth trend,” she added.
The city serves as a thriving hub for global businesses, providing abundant communication opportunities and exchange platforms. This environment greatly supports decision-making processes and fosters creation of a robust business ecosystem.”
Bai Daping, managing director of Jungheinrich China
Shanghai has established itself as a modern city that draws people from around the globe. This vibrant metropolis offers valuable support to Hoya Group by serving as a prominent partner in the Chinese market. Its conducive business environment allowed us to quickly adapt to the Chinese market and receive robust backing for our endeavors.”
Sally Li, China managing director of Hoya Vision Care
As China’s financial and trade hub, Shanghai enjoys the advantages provided by its geographical location. With outstanding industrial infrastructure, an excellent marketing environment and an abundant talent pool, finding a substitute for this city is a formidable task.”
Hu Daoping, general manager of Nord-Lock China