Smart Manufacturing Push in ChinaThe age of cheap labor in China is almost over. Thus, Chinese companies have recently been introducing smart and automated manufacturing systems, that help to save cost, shorten lead times and increase flexibility. In this article EAC presents three cutting-edge examples: Xiaomi, Alibaba and JOMOO.Xiaomi Smart Factory Founded in 2010, Xiaomi has become one of the world’s largest smartphone manufacturers and most well-known „smart home“ brands within only ten years. The company’s new Smart Mobile Phone Factory is powered by 5G and Artificial Intelligence and has a size of 18,600 square meters, featuring… Equipped with a …
China Case Study: Dyson
China Case Study: DysonDyson is a success story in terms of how foreign consumer goods brands can build and maintain a special image in China – by leveraging product design and marketing in a localized way.Dyson in China – Key Facts After Dyson entered the Chinese market entry in 2012, the country became the firm’s fastest growing market in 2014 and has been ever since. But this development was not pure luck or coincidence, since Dyson strategically invested in its operations in China: Established network of ~15 Dyson self-operated stores and 135 3rd-party-operated POS in 90 cities (focus on tier-1 …
Localization Pressure in China’s Healthcare Industry
Localization Pressure in China’s Healthcare IndustryChina’s rising demand for healthcare products and especially medical devices has been a major growth driver for both international and domestic companies in recent years. But barriers to participate in the booming MedTec market as a foreign company are becoming higher, since the Chinese government is increasingly pushing for localization.How is China’s healthcare industry developing? China’s rising demand for healthcare products and especially medical devices has been a major growth driver for both international and domestic companies in recent years – supported by a general rise in accessibility and affordability of health services. Further increasing …
Hefei – A Rising E-Mobility Hub
Hefei – A Rising E-Mobility HubHefei, the capital of Anhui Province and home to 8 million people, is slowly rising to become one of China’s leading e-mobility and battery technology hubs, thus supporting the government’s direction of gaining a leading position in the global EV market. The city, which is located within 450 km of Shanghai (~5 hours drive, 2 hours by HSR), sees a growing number of companies setting up their business due to favorable policy support and funding by the local government with the aim of reaching an output of 1 million NEVs in 2025.Which companies are driving …
The Rise of China’s Drone Industry
The Rise of China’s Drone IndustryHow big is China’s drone industry? With an expected CAGR of 40.67% between 2017 to 2024, China’s drone industry is thriving. The country is the second largest drone market in the world and is expected to close the gap with the leading market USA in 2024. As the predicted total market value of the Chinese drone industry is over 180 billion yuan in 2025, the sector has turned into a profitable business. According to Drone Industry Insights, the Shenzhen-based company DJI is the top manufacturer of commercial drones, leading far ahead with an estimated market …
Emerging Chinese Consumer Brands
Emerging Chinese Consumer BrandsWhat is happening to China’s domestic consumer brands?The rapid development of Chinese domestic new consumer brands has become a conspicuous phenomenon for China’s consumer market in recent two years. 2020 can be seen as the “breaking out” year for Chinese domestic brands when they started expanding rapidly by differentiation, segmentation, and regionalization. Emerging domestic consumer brands show great competitiveness when facing traditional players. Some of them even successfully beat traditional brands to become the sales champion on e-commerce platforms in their segment. For example, during the “618 shopping festival” in 2021, more than half of the emerging …
Germany’s Supply Chain Due Diligence Act
Germany’s Supply Chain Due Diligence ActOn June 11, 2021, the German Parliament passed the Supply Chain Due Diligence Act. With this law, the German government aims for greater protection of people and the environment in the global economyWhat has happened? On June 11, 2021, the German Parliament passed the Supply Chain Due Diligence Act. With this law, the German government aims for greater protection of people and the environment in the global economy. As outlined by the federal government, German companies will face a range of obligations: Companies must ensure compliance with human rights regulations among their entire supply chain. …
China’s Demographic Challenge
China’s Demographic ChallengeWhy is China facing demographics problems? From 1960 to 2015, China’s population more than doubled to around 1.4 billion people. The government tried to control this explosive growth with the One-Child Policy introduced in 1979, leading to a decline of the average fertility rate per woman from over 6 in the 1960s to 1.7 in 2020. Even the recent policy shift towards a universal two-child policy could not significantly reverse this trend. After reaching its peak in 2016, the number of new-born babies in China is expected to continue declining until 2030. Nowadays, Chinese have fewer children due …
Regional Comprehensive Economic Partnership (RCEP)
Regional Comprehensive Economic Partnership (RCEP)What is the Regional Comprehensive Economic Partnership? Signed in November 2020, the RCEP is a Free-Trade Agreement between 15 countries including the ASEAN nations, China, South Korea, Japan, Australia and New Zealand. As of 2020, the member countries account for ~30% of the world’s population and ~30% of global GDP. In March 2021, China became the first signatory to ratify RCEP, around three months ahead of schedule. The agreement can be viewed as the regional answer to the failed Transatlantic Partnership and a complementation of the existing CPTPP. Its purpose is to eliminate tariff and non-tariff …