Innovation and Competition
Western companies are facing increasing pressure from their Chinese counterparts. The acquisition of foreign competitors, growing investment in innovative industries and an increase in international market shares – often with the active support of the government – has become a daily reality.
In today’s global competition, the newcomers from the Far East are not only catching up technologically, they are also setting their own standards. Particularly in the digital economy, Chinese companies have managed to leapfrog analogous stages of development. Strategic programs, such as the “Made in China 2025” or the “New Silk Road Initiative”, help to foster Chinese-originated innovation and the country’s global role.
German and European companies will have to address these new challenges accordingly. Understanding the strategies of Asian competitors can help foreign companies to identify risks and secure their market position.
Only Those Who Know the Risks Can Act in Time
CHINABRAND is experienced in the field of market analysis and competitive intelligence. Supported by experienced researchers with a strong network as well as the latest Chinese software tools, we identify, analyze, and evaluate potential competitors from China. Through systematic monitoring, we provide our clients with answers to the following questions:
- How will the Chinese market develop?
- What strategies and tactics are pursued by relevant Chinese competitors?
- Where and how can these competitors enter and compete in domestic and international markets?
- What products, technologies, innovations, and IP do they use in international competition?
- What measures can help to protect one's own interests?
With many years of expertise and a strong Chinese network, CHINABRAND is a reliable partner on the side of well-known German and European companies.
Through its Chinese subsidiary, a German producer of cleaning technology came to know about the rise of an until then insignificant local competitor. CHINABRAND discovered that the company had made major investments in the expansion of its production capacity. The competitor was dedicated to tap the Chinese domestic market with its own brand, especially via e-commerce. Furthermore, CHINABRAND found evidence that the company had set up an R&D center, engaging about 200 developers and engineers. Based on these findings, our client was able to react to the new competitor in time and hence, adjust its own business strategy adequately.
A Swiss engineering company considered its entry into the Chinese market. Opportunities linked with this project were evaluated by the means of a feasibility study as well as the assessment of potential partners. On that account, our client could initiate and successfully accomplish an M&A project with a former Chinese competitor. After the successful acquisition of the Chinese company, our client can now declare its products as "made in China" and thus, enjoys advantages in state tenders.
A German brand manufacturer of kitchen installations wished to further strengthen its presence in the Chinese market through an expansion of its e-commerce activities. CHINABRAND conducted specific research on relevant foreign and local competitors’ e-commerce business of which guidance for its client could then be derived. Thorough analysis of Chinese e-commerce marketplaces showed which platforms were best suited for presenting a German premium brand in the field of kitchen technology.