Latest / The German Innovators Podcast – Breaking Barriers, Building the Future / #02 Innovation from China going global

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#02 Innovation from China going global · The German Innovators Podcast – Breaking Barriers, Building the Future

0:02
The gym and innovators in China podcast.
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We Empower you to stay tuned with Chinese innovation.
0:13
The survey that this podcast talks about was conducted by the
0:17
German Chamber of Commerce in China, and its partner,
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bearingpoint welcome back. Everyone to an exciting new
0:22
episode of the Jinn. China beads podcast.
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This podcast is powered by the German innovators snap work and
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active community of entrepreneurs and innovators in
0:32
China. And in Germany today, I have an
0:34
expert on German smes and business in China with me.
0:38
My good friend. Marvin PhD.
0:40
Who is National seniors? Director of innovation at the
0:43
German Chamber of Commerce. In China, we talked about in
0:47
super interesting. Innovation, survey of the German
0:49
chamber, which was just published this Tuesday, 28th, of
0:53
June with a promising title Innovation from China, Going
0:57
Global. I can't wait.
0:59
Marvin. Great to have you and a warm.
1:01
Welcome to you. I bet you.
1:03
Thank you so much for having me. I'm excited to be here.
1:06
Mom and you've entered into your 11th year here in China and can
1:10
now be considered and Old China hands.
1:13
But let's briefly expand this term to our audience.
1:16
The term China hand junghwa Tong originally, referred to 19th
1:21
century, merchants in the treaty ports of China, but came to be
1:24
used for everyone with expert knowledge on the language
1:28
culture and people of China. And today, old China hands is
1:31
used for people who have been living in China for these 10
1:35
years or even more which completely applies here.
1:38
It's quite a while that you have been here and several cities
1:41
These are what makes you so passionate about China that you
1:44
cannot part from it. And what is the motivation
1:47
behind the survey that you have been responsible for?
1:51
Actually, I'm a little bit in between.
1:53
So actually living in China and I'm officially nine and a half
1:57
years with several visits before that in three days.
2:01
I'm actually celebrating my 50 years China, versary from coming
2:05
the first time to China, which was on the third of July.
2:10
We're really fascinates me. Is actually the constant
2:14
development in China. It never gets boring and China
2:18
keeps surprising you not always in the best way, but yeah, it's
2:23
just such an exciting place to be and over the many years and
2:27
really seeing the development. I came the first time in 2007
2:31
and that was definitely very clearly different China than
2:35
what we are living in now. With this study and actually
2:40
started in. I think 2016, I Rocha study for
2:46
the economic Minister for the German economic Ministry on this
2:50
setup and Innovation seen here in China.
2:52
And at this time, there wasn't actually too much of secondary
2:55
literature. So I was like, how can I explain
2:59
what's going on here and the Dynamics.
3:01
So I started to conduct a lot of interviews for startup founders
3:06
with Community. Builders, this Venture
3:08
capitalists and ask what's happening here, why is this
3:11
Dynamic? And from then on, I was kind of
3:16
stuck with this topic. I saw the further development
3:19
now, this massively secondary literature on what's Happening
3:23
Here, and but yet always have been a very important topics
3:30
throughout my work at the gym and chamber.
3:33
And now, I, General goal is to support German.
3:37
The 22 Market, also, the German companies, which are here on the
3:41
Chinese market, and Innovation is a very relevant field for
3:45
German companies. So I'm very happy.
3:47
We could create this new position in December last year,
3:52
which I'm now having is like the national senior director
3:54
Innovation. And our goal is we could really
3:57
to support German companies in their Innovation activities in
4:01
China. And to do this really well, we
4:04
first need to understand what is this The status quo, what other
4:08
opportunities? What are their challenges?
4:10
And this is why we conducted the survey to really get an in-depth
4:16
understanding and from then, on seeing how we can support German
4:20
companies here, and there are indeed and Innovation
4:23
activities. Then let's talk about the
4:25
survey, as I said before, we are going to talk about Innovation
4:28
activities of German, companies in China, which is your
4:31
expertise. I had the chance to read the
4:34
survey and study its findings beforehand.
4:36
And then Is a couple of important points in it that we
4:39
should absolutely talk about today.
4:42
But before we go into detail, we need to also speak about who
4:46
participated and about the company's motivation.
4:50
Why they're here in China as I'm use made up 88% and German
4:55
multinationals only 12%. So, we can basically be talking
4:58
about an SME survey, 24% came out of the Machinery, Industrial
5:04
Equipment sector 19. Sent for automotive, like BMW
5:10
Volkswagen Daimler Etc. Also, OEM 9% business services
5:15
and 6% Electronics. You also wrote that sales
5:19
marketing Production Services, where the three areas of
5:23
business and that were most percentage among the
5:28
respondents, but also R&D departments were included in the
5:32
survey, which is a great setup for the survey.
5:35
And you also said that you got a lot of Management responses
5:38
about 68% Martin. Why are these companies here?
5:42
Is it really because the dollar signs are in their eyes and the
5:46
huge sales Market? Is that attractive that they are
5:48
here, or what are the other motives?
5:50
I mean, the actors to the market is still one of the major
5:54
reasons why these companies are here, we're still about 87
5:58
percent, and so this is one of the reasons they're here.
6:02
Traditionally also a lot of companies can be improved
6:05
production and the low cost labor.
6:08
This is now an old list actually the lowest reason why they're
6:12
here was just 37%. Very interesting is actually
6:16
that 71 percent of the companies, we surveyed come here
6:21
to China because of the access to skills and knowledge and over
6:26
50%. I here for the access to
6:29
strategic Innovation Alliance has.
6:31
I think this is definitely a different picture of what
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probably the majority is. In Germany, why companies are
6:38
here? Or what they consider to come
6:40
here. So really X2 skills and
6:43
knowledge and extra digit, Innovation Alliance has, might
6:46
be not always the first idea by German companies and here in
6:51
China. And what is also really
6:53
interesting is the level of R&D activities German companies are
6:57
already doing here in China, about 50 percent of the survey
7:01
companies are doing R&D in China for the Chinese market, but are
7:06
ready. E, 1/3 doing R&D here in China
7:10
for the global market, a really large number and this is also
7:14
why we called the survey Innovation from China Going
7:17
Global. Because you really see, it's not
7:20
just about the local market, it's about the global strategy
7:23
of the company's Chinese place, a significant role in whether
7:27
companies are planning to increase their own D, or to
7:30
start our India and China also, for the global market.
7:34
Could you give some examples? Maybe companies that I've spoken
7:37
to personally, anything that you have come across while
7:41
conducting. The survey we had actually
7:43
several companies, we talked to who don't just like fill out the
7:47
survey but also give us more in-depth insight into their R&D
7:51
activities and their Innovation activities here in China and
7:55
there were different approaches one was, actually they threw the
8:00
I don't want to say detour but you do the way of coming to the
8:04
Chinese market. They Got in contact with the
8:09
more lower Market segment than the one they were before,
8:12
providing the product for like, developing products for this is
8:17
actually feather compacting. One of the companies we talked
8:21
in depth with about their Innovation strategies and they
8:25
came to China and then localized, some of the products
8:29
at a little bit, lower market segments then realize that the
8:34
local iron teeth at it he and the new innovative All right.
8:37
Substance New Market segment and not just interesting for the
8:40
Chinese market, but for different other Global markets
8:43
as well. So they actually had through the
8:48
establishment of an entity here in China.
8:50
A new access to a new market segment globally.
8:55
And this is also very interesting finding of you.
8:59
Now this is very interesting indeed I think very surprising
9:03
for many of the companies and also audience many People are
9:07
still thinking that companies. Come to China to sell big to
9:10
China many still believe that China is lacking behind.
9:14
Germany is so Advanced, maybe we can talk about this as well
9:17
because you have been working in this field for so long
9:20
sometimes. Speak to them Market leaders in
9:23
their segments and they're still learning from China.
9:26
You mentioned, like strategy is one part, but then also products
9:30
and new Services I think was the second.
9:32
Part digitization might be a part.
9:35
What else is there that can be? Covered in general, one of the
9:39
key findings of the survey is definitely that the local the
9:44
local companies, a local competition of German companies
9:47
here in China are really, really strong in their R&D.
9:52
And actually, the the competition is always also
9:55
driver for Innovation and the strongest driver for innovation
10:00
of German. Companies in China is a local
10:02
competition. We made also and analyze this in
10:06
which the Is the German companies feel they are
10:08
stronger, and in which are they Rica, very prominent, which is,
10:13
I think to be expected, is that the quality of products and
10:16
services of German companies, they see themselves as stronger
10:20
than Chinese competition. But it's especially when it
10:23
comes to establish and expanding local Rd capacity to IND process
10:28
is driven by local teams. And also by time-to-market of
10:33
new products, and services German companies, see that their
10:36
local Petition is stronger and this is really driving them to
10:41
learning or us like adapting this China.
10:44
Speed to always still stay a competitive player here in the
10:48
market. And this is a very, very strong
10:51
driver that the quality of our products of the product of
10:56
German companies is pretty good, is not necessarily a huge
11:01
positive factor. It's mostly like, it's a
11:03
precondition. That's for sure.
11:05
But now you really need to adapt.
11:08
Also in your processes and your Innovation processes in your R&D
11:12
in your China speed kind of as a German company here locally and
11:17
really looking in their Innovation strategy and see
11:20
where they standing compared to the local competition.
11:23
This is what we want to do is the with a survey to really that
11:27
every company can see, where am I standing?
11:30
Where's my competition standing? What can I learn?
11:33
How can we, Up. What can we do better.
11:36
And, and really understanding the local market dynamics
11:40
quality is good. It's a precondition.
11:43
And from there on, try to further Advance.
11:45
Yeah. Thank you.
11:47
You are just mentioning Rd establishing and expanding our
11:51
D, which is one of the strengths of Chinese competitors.
11:55
Can you tell us what this actually means?
11:57
Is it the speed and setting this up or the like them, how they're
12:02
organized Rd or what does men That it definitely wears this
12:07
not a one size fits all but it's often better very very fast in
12:13
this. They understand the market very
12:15
well. We all know Chinese consumers
12:18
are very open for new technology everything which is newest,
12:21
first of all, good and look. And also they expect a lot of
12:24
customization. So when we also the, the
12:27
companies we talked to they definitely said that the
12:30
customization and the speed of customization for their clients
12:35
for the local clients, Chinese competitors are often stronger
12:38
and that they really can learn from this and every Parts which
12:43
I in their field of digitization user interfaces of products,
12:49
these are often practice where a Chinese competitors are very
12:52
strong and also the Rd processes are driven by local teams which
12:58
often probably best understand. Also the consumers is a very
13:02
strong effect on so it's basically the The face from the
13:05
physical product to its digital connection or sometimes digital
13:10
Twins, or how you sell the product, how you bring it to the
13:13
market in a digital way. So those are germs that very
13:16
good at developing or further innovating the physical part and
13:19
usually Chinese partners are slightly better with the digital
13:23
part. Is that what you mean?
13:25
Yes, definitely and what you just mentioned is also very,
13:29
very good point when it comes to sales and marketing like really
13:33
using the social commerce System here in in China.
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Chinese competition is very well-known.
13:40
In these Waters, let's say and their marketing Waters here in
13:43
China, which is very different than the sales channels and the
13:47
marketing in Germany and other markets.
13:50
So, in this regard also Chinese competitors are much stronger
13:55
and you also have a section in your survey where you speak
13:58
about what the best kinds of Innovations are from a German
14:03
company. Perspective, I do not recall all
14:06
the categories, but you speak about groups of customers that
14:10
companies invited to come into their offices.
14:13
To watch them. Use the product engaging, with a
14:16
certain group of your users, which is typical, but there's
14:20
also engagement with your user groups online.
14:24
So, there's different kinds of engagements that help you.
14:27
Innovate also internal engagement with for example,
14:30
other departments with different kinds of experts.
14:34
It's and I think you segmented this into closed Innovation and
14:39
open Innovation, and then you further split this into these
14:42
different types, could you also talk about this?
14:46
Yeah, when we, when we focus on the terms of global stand, open
14:50
Innovations or close. The Novation is often more
14:54
preferred by German companies because it's also the safer way.
14:58
Especially IP protection is still an issue or German
15:02
companies here. So they Crispr to do Innovation
15:07
processes which are very close tight to their company.
15:11
The complete internal R&D or whiskers customers and partners
15:15
and open Innovation, is like, with external institute's,
15:18
research to under partners and their, they are a bit more
15:22
reluctant. But we also know that a
15:25
strategic alliances for Innovation activities are very
15:29
important here and also, when we look at the different forms of
15:33
innovation and And the importance, German companies put
15:38
to certain fields of innovation and comparing it to the actual
15:41
implementation rate rate, especially strategic
15:45
Partnerships have the biggest gap of.
15:48
Yes, this is very important to of strategic Partnerships for
15:51
Innovation activities of warranty, but the implementation
15:55
rate is the lowest. Let's think it's about forty
15:58
percent difference here of implementation and neat.
16:03
And this Is also a part where we try to support German companies,
16:07
even more to find good partners. Build a good Partnerships that
16:12
they also sustainable and safe. And yeah, also making aware of
16:18
this very important factors of innovation activities but also
16:22
the challenges on putting this in place and when it when you
16:27
mention time-to-market you speak to a lot of companies here on
16:31
the ground. What do they see why?
16:34
Add competitors quicker. And why do they have a shorter
16:38
time to Market? If they make, they make use of
16:41
everything. What is here?
16:43
So they are working much closer with the customers, actually
16:47
their understanding especially because they have probably
16:50
stronger local teams and acting more according to the local
16:54
market. So there's probably not so much
16:58
that can foster the headquarter, doing everything.
17:00
Exactly, like the headquarter would probably do that and you
17:03
processes every And this is terms of agile product
17:09
development, edges sales to really like focusing on like
17:15
tapping into the social commerce ecosystem here in China, which
17:19
is very different than in Germany or in other countries,
17:22
in the world and making like, a hundred percent use of this.
17:26
Also advantages, the Chinese market is giving because the
17:29
customers are so eager to actually be part of the whole
17:34
development. Comment process is very quick
17:35
feedback and it's much more close contact between customers
17:42
might be also clients and the product development team and
17:46
this makes Chinese companies very quickly.
17:50
An interesting point, and when it comes to the headquarters,
17:54
you mentioned them briefly German headquarters, engaging in
17:57
the whole process, I know that not all the companies and all
18:01
the headquarters, really understand?
18:03
How important that Chinese market and other types of
18:06
innovation and understanding. The Chinese consumer with
18:10
respect to Global strategy and Global development is.
18:13
Yeah. So how do you headquarters?
18:15
But also how do their German companies in China, react to
18:20
this competition and how do they learn from this competition?
18:24
How do they change their behaviors?
18:26
I think I can actually give you a practical example.
18:29
Very, very lucky. We had some companies who don't
18:32
only just like fill out the Herve, but really gave us more
18:36
in depth, in insights into their Innovation and R&D strategy
18:41
here. And one of these companies is
18:43
had a compacting. So, they confirm many of these
18:51
factors concerning their local competition.
18:54
So they also say, in terms of digitization especially when it
18:58
comes to user interface and to customization and to speed
19:03
Chinese. Competitors are much stronger,
19:06
maybe just to give you a little bit of background peda
19:09
compacting. It is in the Pharma industry.
19:12
So they produce machines for a capsule fillings for tablets.
19:19
So they always have the machine, which is a very high quality,
19:23
but you have also the user interface when the in the whole
19:28
software around the machines and in this regard, the local
19:31
competition is pretty strong. And pedal compacting that a very
19:38
like it's three step model kind of to upgrade the Innovation
19:42
activities here in China and to also use the ID in China for the
19:48
global markets. And I think for German companies
19:51
quite interesting to also analyzed for themselves.
19:54
We're on these three steps my companies at the moment.
19:58
So, as many companies, the first that they came to China was
20:02
actually for production reasons. And all the IMD was in Germany
20:07
and the Second Step effects actually localized and optimized
20:14
for the local market and their realized.
20:15
Okay, there and the very high end Market with their machines.
20:19
And they realize there's a lower Market segment here, which they
20:25
offer could tap into. And so, they, they innovated
20:29
their products or develop their progress more for the local
20:33
market. And entered incomplete New
20:36
Market segment. This new market segment is
20:39
actually a parent in many other places in the world.
20:42
So with the the way of going to China, they end the entering
20:48
this new market segments. They now could actually enter
20:50
this new market segments in the global market.
20:54
And for them to and for them to very strong success factors are
21:01
an employee driven Innovation but we had before which is the
21:04
strong strength of Chinese companies.
21:08
So it's not just on the management level and what just
21:13
highest R&D management that like in all levels, they're really
21:18
enable them for years to be involved to give their
21:21
understanding of processes of innovation.
21:24
Is this and the second thing is, what can was cross-functional
21:29
teams of German and Chinese developers.
21:33
What we have had is also suffering.
21:35
The Koreans are still ongoing travel restrictions and
21:39
disregards. That I cannot just easily send
21:42
their engineers and developers to Germany or the other way
21:45
around, so they stood try to do everything as in the digital
21:50
format as it's possible. But it's, it's On each level
21:56
really is the exchange and the cross-functional teams not just
21:59
on the management side and this is definitely a key successful
22:03
effective for this company and has been proven so far pretty
22:07
successful and let's go back to digitization.
22:11
I think there's so many different situations that have
22:14
been happening in the last two years.
22:16
Also, because of the pandemic, not only here in China, but also
22:20
worldwide like lockdowns and also Office situations, where
22:25
you haven't been able to operate certain processes.
22:30
And as you had been operating them before, when you were on
22:32
the ground in your factory, dad say, which to some extent also
22:37
forced us into being a bit more creative and find new approaches
22:41
to dealing with these business situations.
22:44
And what I discover here in China is that you have a lot
22:47
more uncertainties. Additionally to what you see,
22:50
why? You see a lot of uncertainties
22:53
that are caused by By changing regulations that can be
22:56
different every day. So everybody's somehow prepared
22:59
for new situations where you have to find quick Solutions.
23:04
Even if you have a strategy already defined and I find that
23:09
German innovators, you're on the ground.
23:11
Learn quickly to live in this culture but they are confronted
23:15
with the headquarter which is in a different setup.
23:19
Have companies also mentioned that in the survey.
23:22
Yes, definitely. And I think I mean we we all
23:26
like to not have years ago, a lot of uncertainty we all face
23:30
in the whole world and was very strongly in China.
23:34
And even we, as the German chamber didn't had any issues
23:39
with our headquarter more, the opposite very supportive, but we
23:42
also had to deal with this week uncertainty, I think companies
23:46
here. Also, German companies here were
23:48
longer on the market are getting pretty much used to lot of
23:51
uncertainty. I mean we pushed or wish to have
23:55
more stability, we wish to have more stability in the whole
23:57
world and also on this Market to really make good strategic
24:01
decisions and Investments. But in China we always I getting
24:06
really used to a certain kind of flexibility.
24:11
Speed things can change very quickly and when it comes to the
24:15
Innovation and R&D activities you in China the German
24:19
companies actually see about 50%.
24:22
And said that an internal variable them for their R&D
24:26
activity here is actually the German headquarters because they
24:31
probably have a different strategic approach.
24:34
They are not used as much to this flexibility to speed to
24:38
this changing Market. To this Dynamics.
24:40
Also, how things are working here in China and it clear
24:44
request from them. To the headquarter was with
24:49
about 43% demanded more Tamesha and Innovation activities on the
24:55
Chinese market. And the same number of output is
24:58
represent. Also require from the
25:01
headquarter to build local iron D function here in China to be
25:05
more able to react to these uncertainties.
25:08
But also to this changing Market, to this very, very fast
25:12
changing demands of Chinese. Consumers is nothing.
25:16
It's always about the headquarters willing to take
25:19
what is happening and what is being invented and what is being
25:22
being observed on the Chinese ground, seriously because could
25:26
actually learn a lot from it because we will be confronted
25:29
with more uncertainty in the next upcoming Years.
25:31
Also, in Europe, although it has been quite stable until now, but
25:36
I think a really big problem. Also in this is to understand
25:40
the Dynamics and also understand the needs of the local entity is
25:45
that there is personal exchange. Is that the headquarter the
25:49
management comes you to China. And understands the markets
25:52
What's going on here? Also for Chinese Engineers to to
25:56
also get like a good training and understanding of the
25:59
headquarter big issue. Definitely is here.
26:03
The barriers of travel restrictions, we have even the
26:06
last days they got East a little bit but to really have this
26:09
intense exchange, we had before we still need a lot more played.
26:13
This is really hindering a lot in understanding, also between
26:18
local entity, and the headquarter.
26:21
And we really hope that at this is going to change because to be
26:24
successful here on the market. The good understanding of each
26:28
other is very important, and this is lacking the last two and
26:31
a half years a lot. So German executive High Court
26:35
executors need to be on the ground every now and then which
26:38
is very difficult right now and this was collaboration with the
26:41
headquarters. Now let's also go back one step
26:44
because we were talking about collaboration in China.
26:48
So collaboration with Partners in China in the Serbia.
26:52
You are speaking about internal and external Innovation, that's
26:56
focused on external innovation of for.
26:58
Now, the company state that the lack of external networks is a
27:02
major Innovation barrier for them, which I find interesting
27:06
because we also know that at the same time, companies are
27:09
concerned about the protection of intellectual property.
27:12
As you also said before, therefore, many, actually,
27:15
preferred to engage many with our close partners, for example,
27:18
joint venture Partners, but also internal expertise, He's so on
27:23
the one hand, they want more, open networks and platforms, but
27:26
on the other hand, they wouldn't really want to engage with them
27:29
because they are concerned about the IP.
27:32
You guys didn't know. I mean, it's not just that
27:35
they're concerned about the IP and that's why they don't want
27:38
to cooperate. It's often getting in contact
27:42
and really getting the understanding and finding the
27:45
right partner where we also see a little bit.
27:48
Our job here is to be done and we did already have several
27:51
events in the past. Really connect her German
27:55
companies was potential, Chinese partners and Pusher very
27:59
important part is that you were do your homework.
28:03
When it comes to IP protection, we also do a lot of webinars in
28:07
this regard and offer support, so this is a precondition to be
28:13
yet to really do your homework at this regard, but then it's
28:16
like also, like really finding the right Partners learning to,
28:20
to work together and We did like this every event.
28:24
One was like the first ignite event as a response to the
28:30
energy shortcuts here in China, where we offered and showed best
28:35
practices, actually on Innovative, and smart ways, to
28:38
save energy for production companies here in this house and
28:43
one company work together with then startup actually who have
28:49
been AI product to analyze the whole day.
28:52
Energy flow in a factory. And could with the help of a, I
28:56
get very specific answers on where to best and how to best
29:00
save energy. And another one was more
29:02
practical cooperation with Chinese solar energy company.
29:07
Also specifically focusing on production facilities and their
29:13
we, we showed the best practice and all the companies who
29:17
attended if the feedback afterwards is like we can
29:20
hundred percent implement. This is the so I mean, we never
29:23
thought about it actually not high-end Innovation like the
29:25
second example, but very practical and actually very
29:30
feasible to put into place. So it's also like really finding
29:34
the right partners, and we have a lot more even more mad.
29:37
So I really try to connect them and then also giving all the
29:42
knowledge on do your homework and IP protection and to build
29:45
sustainable corporations. So you're not only do the
29:49
service, you offer the platforms and offer the Ends at the German
29:53
chamber to engage with different companies and partners to
29:57
innovate and find practical solutions to very feasible
30:01
problems. And what I also really like and
30:04
which has a lot of Outreach and a lot of impact, is that you
30:09
speak with local governments and to also speak with the central
30:13
government and you formulate calls for actions and you did
30:17
that also with your survey. So there's one page it with
30:20
calls for action. Yeah, it's a complete two pages
30:24
and we divided a little bit call to action for German companies
30:27
and also called for action towards a Chinese government.
30:31
As you just mentioned this. It's still very important to
30:35
implement a Level Playing Field. Oil, also foreign companies here
30:39
in China that the regulation are transparent that they really
30:43
have this same playing field. Let's say here on the Chinese
30:47
market and also, there is a lot of as subsidies and incentives
30:50
from the Chinese government. So the information on this
30:54
should be equally distributed to uh, no matter which company is,
30:57
it should be just equally accessible and we talked already
31:00
about travel restrictions which are definitely a big innovation
31:05
barrier. Also what is very important is
31:09
the free flow of information between countries and this goes
31:13
in the direction of cyber security and data protection so
31:16
that our protection regulation should be very clearly defined
31:20
to have secure. Your data flow between
31:23
countries. And when it comes to qualify
31:27
chain for German companies, one strong Factor.
31:30
We talked already about this really speed up, like the
31:33
quality is a precondition and a competitive Advantage, but Alex
31:37
has the development Cycles time to market.
31:40
In terms of project implementation is really a key
31:45
factor to keep up with Chinese competition.
31:48
Thank you very much. This was it also a good summary
31:51
for what we talked about About and like the findings of the
31:53
survey, it was a pleasure speaking to you today was a lot
31:57
of fun. Yeah.
31:58
Thank you very much for taking the time and being my guest
32:00
today. Thank you so much for having me
32:03
and sharing off of the results of the Innovation survey.
32:08
So let me summarize our key learnings today.
32:11
Number one, the harsh competition is the main
32:14
Innovation drive up, but German companies in China number two,
32:18
therefore they not only value. The Chinese market with regards
32:21
to its enormous sales volume, but also as regards to his
32:24
potential of becoming an important Rd hub for Global
32:28
Solutions, number three, Chinese competitors are really strong in
32:33
their R&D, especially in the establishment and expansion of
32:36
the same and there. Are also very fast because of
32:39
the advanced R&D process has driven by local teens number for
32:44
what ultimately makes Chinese competitors, so much quicker.
32:47
And the time to Market is the extensive knowledge and usage of
32:51
the social commerce system, which leads to new forms of
32:54
customer engagement. And also quick feedback loops
32:57
between customer and manufacturer, important calls
33:01
for action, towards the German companies are that they should
33:04
speed up digitize their processes and improve that low.
33:08
Expertise by giving more autonomy to local teams.
33:11
They should further selectively develop products and services in
33:15
China for competitive time-to-market speed on a global
33:18
scale and last but not least, local learning should find their
33:22
way into the global business strategy of German companies
33:25
which also ultimately depends on the headquarters.
33:28
So thank you very much for listening.
33:30
Join us again next time for new insights on topics, like the
33:34
Chinese startup support system and venture capital in China.
33:38
All the best from Shanghai. All the best from Shanghai.