Going Global May Be Our Only Chance

2024-11-15 22:26:00

Do you still remember that slogan from years ago, “Changing Everything with Internet Thinking”? Did you scoff at it back then? As the tide of time rolls forward, looking back today, what remains unchanged by the Internet? And now, going global and AI are once again riding the wave of trends.


Why is everyone talking about going global?

On one hand, domestic market competition has become too fierce, with many industries reaching saturation and overcapacity, causing enterprises to hit growth bottlenecks. Data shows that nearly 100,000 Chinese enterprises are now conducting business overseas, and the demand for overseas talent has also reach into millions. A report by LinkedIn and MIT Technology Review points out that industries such as smart hardware, industrial robots, medical health, and new energy, over 95% of enterprises have already begin overseas localization operations.

On the other hand, the rise of emerging markets brings us tremendous opportunities. Russia's GDP growth has been close to 4% for two consecutive years, even during wartime." Economic growth in the Middle East, South Asia, Southeast Asia and other regions has been even more rapid, and India's GDP growth rate in recent years has even ranked at the forefront of the world. The International Monetary Fund predicts that by 2028, the GDP growth rate of the ASEAN countries and Developing  Economies in Asia is expected to reach above 4.5%.



Where are the Opportunities For Going Global?


A tycoon went to Yiwu for research and encountered two merchants selling phone cases.  When he asked how much money they could make from these phone cases, they replied that the domestic market is highly competitive with prices kept very low, making it barely profitable. Their main customers are from the United States. The cost of a single phone case, including logistics, is approximately $10, but it can be sold for $45 on foreign e-commerce platforms and live streaming rooms, with profits multiplying several times over. Moreover, they can sell several of them in a day.

The new energy vehicles we are familiar with are generally priced at least twice as much overseas as they are domestically.

Recently, China's electric tricycles and electric two-wheelers have gained popularity popular in South and Southeast Asia, thanks to the implementation of oil-to-electric emission reduction policies. Moreover, the industry landscape in many countries has not yet taken shape, with no player holding a market share exceeding 10%. Chinese enterprises are expected to dominate these markets. Compared to domestic market, both the retail prices and net profits are significantly higher.

Similar products include portable energy storage devices, surveillance equipment, photovoltaic products, and more.

In Singapore and Malaysia, one can see well-known Chinese food and beverage brands such as Mixue Bingcheng (Milk Tea Ice Castle), Gong Cha, Ba Wang Cha Ji(CHAGEE), and Haidilao, which are incredibly popular with long queues outside their doors. This is a microcosm of the overseas expansion service industry.

It can be said that all countries that are currently on, or are about to embark on the path that China has already taken, will present opportunities for our going global.

Many Chinese companies, such as OPPO, Vivo, Xiaomi, TCL, and Chery, have already achieved significant success in overseas markets. Their success has proven the enormous potential of going global. To put it bluntly, as a result of the reform and opening-up policy to this day, there are more Chinese enterprises with mature products, brands, and management. Internationalization is an inevitable path for us today and in the future, just as it was for European and American companies that came to China to establish businesses and conduct trade decades ago. Now, it is our turn.


Domestically, it has become increasingly difficult to find such significant structural opportunities.



Lessons from History

Looking back at history, the United States broke out of its economic depression by selling products worldwide. At the end of the last century, Japan, facing economic stagnation and deflation, was revitalized through the international expansion of its enterprises. Their experiences tell us that going global is the most effective way to cope with domestic market pressure.


Why is going global may be our only structural opportunity?

In those years, Japan faced tightened domestic market demand and intensified competition, with internal attempts proving almost futile. Enterprises began to accelerate their global market layout, seeking new business opportunities overseas.

The era of demographic dividend in China has come to an end. To seek lower-cost labor and raw materials, reduce production costs, and enhance competitiveness, the only option is to go global.

Under the dual impact of suppression from the US and European economies and internal convoluted competition, to improve profit performance, I cannot think of any better path than going global.

Most critically, our population growth has become unsustainable, while population growth in emerging market countries continues, and the international consumer market is still expanding. The demand from consumers worldwide for Chinese manufacturing is still growing. Such structural opportunities can only be found overseas.

As the leading companies in China gain more overseas clients, their ability to serve global customers must keep pace. Consequently, these leaders will inevitably take their supply chain enterprises with them to establish production bases and supporting service centers overseas, in order to better meet customer needs. China's greatest strength lies in its vast industrial chain scale and complete industrial support systems, possessing the only full range of industrial sectors globally. This robust manufacturing capability and industrial chain advantage form the foundation for enterprises to venture abroad.

Policy support, with the rise and continuous innovation of Chinese cross-border e-commerce enterprises, has in turn effectively reduced operating costs, accelerated market responsiveness, and enhanced connectivity with overseas consumers.

Looking at it this way, at present, who else but us is poised to go global?

Under such circumstances, as one of those helping enterprises go global through exhibitions and digital marketing means, we have decided to organize the MEEM Going Global Conference using a combination of "offline meetings" and "new media." The event is scheduled for January 11, 2025, in Beijing. Beijing is an international exchange hub and one of the cities with the most concentrated domestic resources.




√Where exactly are the trends in the micro-level fields?
√Where can the required overseas resources be centrally accessed?
√Where can one learn from the experience of those who have ventured abroad before?
√How can the risks associated with going global be identified and avoided?
√Where can one meet capable individuals from all sectors of the industry?
√How can domestic high-quality exhibitions collaborate with exhibition organizers and service providers to go global?


The above are the core issues that this conference aims to address.

We are currently in the midst of finalizing the content to be shared by key speakers, the arrangements for one-on-one matching sessions, and more. We will soon release the official version 1.0 agenda.

We hope that at the beginning of 2025, this conference will be a pragmatic assistant on your journey to go global.



For inquiries or registration, please add the organizer Sunny on WeChat: