April 29, 2018 –In a forum in Beijing, more than 400 business and government officials from around the world have discussed the opportunities and challenges Chinese companies face as they seek to go global. The forum, held under the theme “Chinese brand global strategic development”, was organized by Nielsen, a leading global performance management company, with the support from the China International Council for the Promotion of Multinational Corporations (CICPMC).
Managing directors from Nielsen offices in Egypt, Indonesia, the Philippines and Turkey were on hand to offer their expert advice on consumption trends in various markets, strategies for new entrants, principles for success and insights into the rewards to be reaped.
Tamer EI Araby, managing director of Nielsen Egypt & Levant, shared that Egypt’s economy is recovering rapidly, and various macroeconomic indicators are looking positive, thanks to government policies. “In the current economic context there are two new consumer market trends,” El Araby said. “One is that discount stores are becoming the most popular shopping channel, and the other is that online shopping continues to surge. In 2014 just 2 percent of consumers shopped online, and that now stands at 8 percent.
“As a new driver of globalization, the Belt and Road Initiative is helping companies stretch their international horizons and grow,” said Andy Zhao, president of Nielsen China. “However, while companies ‘go global’ they also need to ‘go local’ so they can perform well overseas by solidifying their operations and becoming fully integrated there. They also need to ‘go up’, which means pushing on with innovation, strengthening the influence of their brands and leading the way as ‘Made in China’ becomes ‘Created in China’ and they transform and upgrade industrially.
He cited the data from China’s Ministry of Commerce, which indicates between 2013 and 2017 the country’s trade in good with economies participating in the Belt and Road Initiative exceeded $5 trillion and outbound direct investment reached over $70 billion. During the period, Chinese companies set up 75 economic and trade cooperation zones in countries and regions involved with the initiative and created 210,000 job opportunities, the data showed.
“Over the past few years Nielsen has helped Chinese companies become more important players on the world stage,” Zhao said, citing 3C products and motor vehicles as an example. “In Chile, Egypt and Southeast Asia we conducted consumer research on Chinese brands using very precise measurements, getting to understand consumer sentiment, assessing the launches of various products, monitoring brand influence and satisfaction and evaluating marketing strategies to win in the market place.”
However, even though the Belt and Road Initiative provides great opportunities for companies, huge differences in political, economic, cultural and legal systems of the various economies need to be taken into account.
The historic commercial opportunities the Belt and Road Initiative offer are enormous, and Nielsen China will draw on its international perspective and global research opportunities to help companies seize those opportunities, tackling and of the challenges that arise. More broadly, Nielsen China is well equipped to give companies with overseas ambitions commercial and cultural insights into the markets they aspire to enter.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world’s population. For more information, visit www.nielsen.com.