Going Global May Be Our Only Chance
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.
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.
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?
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.
For inquiries or registration, please add the organizer Sunny on WeChat: