#January2024 #China #Market #Strategy

China Champions to the Rescue: a Boost for MNCs

‘We had a great year because we were connected to China champions many of which are growing 50% year-on-year.’

‘Twenty-five percent of our customers were Chinese firms going out. Without them we would have been toast, but we had our best year ever. This completely surprised my board.’

‘I just reviewed the client lists with our sales team. Our success depends on choosing the right clients. A losing client will keep cutting costs. But a fast-growing brand will keep us busy.’

‘My customers are going to the global south: the Middle East, Africa, Southeast Asia. They go to countries not on the radar of US firms.’

‘2024 is very hard to map out. It could go up or down. It all depends on how our customers, especially the China Champions, fare.’

Chinese champions have expanded into new foreign markets and pushed into lower-tier Chinese cities once overlooked by big brands. This pivot not only helped some MNCs achieve record years but also highlighted the value, if not imperative, of aligning with fast-growth Chinese firms. This lifeline, especially for companies experiencing a slow down in more traditional markets, is prompting a shift in how MNCs view growth, innovation, and competition in the evolving Chinese market.

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