The "2024 China Enterprises Going Global Insights and Global Trend Outlook Report" mainly analyzes the background, current situation, trends, risks and challenges faced by Chinese enterprises going global, as well as coping strategies, providing comprehensive reference and guidance for enterprises expanding overseas.
1. Analysis of the Background of Chinese Enterprises Going Global
- Journey and Stage Characteristics: Chinese enterprises going global have experienced three stages: the market exploration period (2001 - 2012), the riding the wave period (2013 - 2022), and the brand leadership period (2023 to present). The development has shifted from product export trade to global brand expansion. Typical enterprises such as Huawei and ByteDance have made significant progress in the globalization process, and the overseas expansion of Chinese unicorns is expected to accelerate.
- Driving Factors for Going Global
- Policy Support: Driven by both domestic and international policies, the State Council and various ministries have issued multiple policies to support enterprises going global, such as promoting brand building, supporting foreign trade enterprises to expand channels, and cultivating independent brands. Meanwhile, many overseas countries also have relevant policy plans to help Chinese enterprises build the "China Intelligent Manufacturing" brand.
- Mindset Reshaping: Demand drives supply. Overseas consumers choose Chinese brands for various reasons, including price, trust, meeting needs, promotions, etc., prompting enterprises to improve in raw materials, products, brands, and other aspects, forming a "demand - supply" cycle-driven model.
- New Quality Productivity: Product strength, supply chain, technological strength, and channel strength jointly build new capabilities for brands going global. Enterprises such as Ecovacs and DJI have achieved success in overseas markets by leveraging these advantages.
- Overseas Market Environment Analysis
- Economic Environment: The global economy is generally on a downward trend, with a cyclical adjustment expected in 2025. The GDP growth rates of the world and major regions have changed from 2021 to 2025.
- Population Environment: India has become a populous country but is not the first choice for Chinese enterprises going global. In 2023, the top ten countries in global population have different population sizes and growth rates.
- Financial Investment: Healthcare, smart hardware, and new energy have become new faces in globalization. The financing situation of related enterprises from 2022 to 2023 shows their importance among overseas enterprises.
2. Current Situation and Trends of Chinese Enterprises Going Global
- Insights into Overseas Enterprises
- B-end Analysis: More than half of Chinese enterprises have plans to enter overseas markets, mainly to explore new channels and expand new businesses. However, they face challenges in product innovation and localization, user acquisition and sales conversion, channel building and local operations during the process. Different types of enterprises face different challenges.
- C-end Analysis: Residents in Europe and America have strong consumption willingness and purchasing power, preferring personalized products; Japan and South Korea have strong payment capabilities; Southeast Asia has a younger population and high acceptance of novel products.
- Industry Map: Covers numerous enterprises in various industries such as automobiles, manufacturing, internet, e-commerce, and consumer goods, showcasing the industrial layout of Chinese enterprises going global.
- Consumer Sector
- Brand Situation: Consumer brands going global are expanding from traditional "big brands" to emerging "small brands." Different types of brands such as Huawei and Maikuku have different performances in overseas markets.
- Localization Strategy: Brands entering overseas markets need to adapt locally, including products, employment, marketing, production, channels, and target groups. Successful cases include Mixue Bingcheng and Midea.
- Native Overseas Strategy: Enterprises need to formulate overseas paths and globalization strategies based on long-term strategic goals. Ways of going global include product export, business model replication, etc. Globalization requires building systems adapted to overseas markets.
- Catering Industry
- Core Elements of Going Global: Southeast Asia is the preferred destination for Chinese cuisine going global, with advantages in macro environment and supply-demand market, such as policy support, suitable population structure, and strong consumption capacity.
- Market Segmentation and Supply Chain Management: In the Southeast Asian chain catering market, fast food is the largest segment, but the highest market share for Chinese catering brands in Singapore is hot pot. Chinese chain catering brands in Southeast Asia need integrated supply chain management.
- Cross-border E-commerce: The "Four Little Dragons Going Global" composed of SHEIN, Temu, AliExpress, and TikTok Shop have changed the landscape of overseas e-commerce markets. In the distribution of Chinese cross-border e-commerce overseas markets, North America accounts for more than 30%, with rapid growth in US e-commerce retail sales. Platforms and independent sites each have their own advantages and disadvantages.
- Pan-entertainment Industry
- Journey and Characteristics of Going Global: From copying domestic products to launching native applications, and then to the integration of social and entertainment, it has gone through three stages, with social forms and user markets constantly evolving.
- Types and Market Situation: Pan-entertainment types are diverse, with various classifications according to different standards. User demand is large, market scale is growing strongly, showing vertical and diversified development trends, with many social sub-sectors and typical products.
- Gaming Industry: Chinese games going global have experienced four stages: budding, starting, explosive, and steady periods. In the future, global R&D and operation capabilities and differentiated market strategies will be the breakthrough points. Game IPs with elements of traditional Chinese culture are popular overseas.
- Cloud Services: The hotspots for internet companies going global using cloud will shift from Europe, America, and the Middle East to Southeast Asia. Gaming and audio-video are the main tracks. The Southeast Asian market has great potential, and currently, internet companies going global mainly deploy public cloud.
- New Energy Vehicle Industry
- Going Global Model: "Local factory construction + brand direct sales" is gradually becoming mainstream, including models such as whole vehicle export, local factory construction, investment and acquisition, and brand direct sales, each with its own characteristics and suitable enterprises.
- Market Layout and Localized Production: Europe and Southeast Asia are core export markets. China's automobile industry has a wide overseas layout. Localized production is an inevitable choice for car companies to establish themselves overseas. Chinese new energy vehicle companies are accelerating factory construction globally.
- Charging Pile Industry
- European Market: 2024 is a turning point, with both opportunities and challenges. Attention needs to be paid to grid upgrades, equipment upgrades, etc. Chinese enterprises face challenges such as trade protection and localization.
- US Market: Lagging construction of charging infrastructure is a development bottleneck. There is a gap between China and the US in new energy vehicles and public charging facilities.
- Southeast Asian Market: The EV ownership and penetration rates of major countries differ, and policies related to charging facilities vary from country to country.
- Smart Hardware Industry: Enterprises such as Xiaomi and Pudu Technology have achieved success in international markets by leveraging advantages in technology and supply chain.
- Overseas Talent Recruitment for Enterprises
- Management Team: In the structure of overseas management teams, the combination of Chinese leaders and foreign business managers performs strongly and has advantages in many aspects.
- Flexible Employment: Enterprises can choose different employment methods according to their needs, each with its own advantages and disadvantages.
- Overseas Compliance for Enterprises: Overseas compliance risks are increasing, including risks in data protection, intellectual property, quality safety, and technical standards. Compliance management for Chinese automobile enterprises overseas is more complex.
3. Summary of Insights on the Globalization of Chinese Enterprises
- External Risks and Challenges: Chinese enterprises going global face eight major risks and challenges: geopolitical, cultural and language, compliance risk, competitive pressure, brand marketing, organizational talent, capital security, public relations and public opinion.
- Breaking the Dilemma: Enterprises need to formulate a comprehensive overseas strategy and clear business path, and carry out localized adaptation and dynamic adjustment, including target market research, risk identification and resolution, etc.
- Product Trends: Overseas categories will become more vertically segmented, technology products going global will be upgraded, competition in new energy and clean technology will shift to "scenario positioning," competition in internet and digital products will be fierce, smart transportation and smart city construction have great potential, technology enterprises may trigger the "catfish effect" of Web3.0 going global, and brand globalization will become the "strategic engine."
