Former Idol, Today’s “Hunter”

  In the past three years, there have been many news about the setback of the globalization process.
  The continuous spread of the epidemic and the constant mutation of the virus have brought the closure of our world in physical space, which is only a superficial and temporary impact, which objectively exposes or intensifies various existing differences.
  The conflict between Russia and Ukraine has been going on for nearly half a year so far. It not only hurts life and dignity, but also exacerbates the complexity of political and economic relations in the Western world. Many Western brands have withdrawn from the Russian market, and the natural gas pipeline to Europe has been cut off. The resulting high inflation has been borne by ordinary people – the consequences of all political disputes in history have been borne by ordinary people. Today, most of the major economies involved in the disputes have an impact far beyond the people in Europe. According to the International Monetary Fund, the top five countries with the highest inflation rates in 2022 are Venezuela, Sudan, Lebanon, Syria and Zimbabwe.
  By contrast, the retrograde of globalization in the business world seems simpler. In 2019, Fonterra divested its Chinese assets, Carrefour sold its mainland China business, and Amazon gave up its localized e-commerce operations in China. This year, Airbnb announced its withdrawal from the mainland market, and fast fashion brand H&M also closed its first landmark store in the Chinese market.
  As a business magazine, the above topics deserve to be discussed in the editorial office. For an opening process that has lasted for more than 40 years, it is too simple to only focus on the retreat and advance at the market level. We want to dig a little deeper.
  In 2001, China officially joined the World Trade Organization, a milestone event for China to integrate into the global system with a new role. Previously, in the late 1980s, a number of foreign-funded enterprises entered China’s auto industry, technology industry, and fast-moving consumer goods industry through joint ventures. This can be regarded as the first stage of China’s commercial globalization. After “joining the WTO”, more markets were opened, and fast fashion brands found Chinese consumers during this period. It can be said that from the 1990s to 2008, multinational companies spent a period of “pioneering period” and “honeymoon period” in China. They not only obtained market access qualifications and policy support, but also brought superior management systems and salary standards. Enlightenment of China’s modern business thinking.
  During this period, the Chinese market has undergone tremendous changes. First, China’s economy is huge, becoming the world’s second largest economy, and its FDI has surpassed that of the United States, which exceeded the expectations of policy makers and multinational operators at that time. Secondly, local companies have grown from the rich manufacturing soil. Anta, Xiaomi, Weilai, Ningde Times, Yuanqi Forest, and URBAN REVIVO have all learned from the experience of multinational companies to some extent, and then become their opponents. Internet companies represented by BAT have opened up new online application scenarios, making China the most active testing ground for the mobile Internet.
  All these are the vitality generated by the continuous blending, conflict and running-in between multinational companies and the local market. Correspondingly, what foreign companies are facing now is no longer a market that was in vain and a battlefield with few rivals. The former students, the current opponents, and the drastic changes in the global situation have forced multinational companies that have entered the twilight of idols to re-understand the Chinese market.
  In order to interpret this topic, our team visited more than 20 foreign companies and many professionals, and the answers we got, as shown in our cover series reports, those enterprising multinational companies, in a difficult market environment, are Become a hunter again.
  This can’t help but remind people that many multinational companies with a history of more than 100 years have witnessed multiple economic cycles and political turmoil. They may view the current situation differently from emerging companies. Those who do return to hunters tend to be companies with long-term values, as well as enduring insight and confidence in what they really need.
  The world has always connected people in some way, such as unbearable heat, spreading disease, and dilemma of globalization. In the most primitive sense, globalization is nothing but a simple connection between a consumer’s natural desire for something new and a company’s instinctual ambition for an unfamiliar market.
  From this issue, each issue will have a blank page: for your page. Feel free to write down your thoughts as you read. With your ideas, this magazine is complete. As for where the blank pages are, you will have to find them yourself in every issue from now on. It is also a connection between us.

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