On the sub-forum called Rethinking “Going Global”, Chen Lin, Commercial Counselor, Department of Outward Investment and Economic Cooperation, Silvio Angori, Chief Executive Officer of PININFARINA S.P.A, Eric Sentus, Executive VP Sales and Marketing, Incadea Group, Ellis B.Chu, Director, Head of China M&A, Bank of America Merrill Lynch and Daesung Yoon, Executive Managing Director, Korea Automobil Importer & Distributors Association (KAIDA) shared their insights on the topic.
Chen Lin said that government is actively creating favorable investment conditions for Chinese enterprises and the Chinese auto companies should seize the opportunity to make “going global” an important strategy. Companies should develop clear investment strategies based on their strengths, enhance the internationalization of the operational hardware and software, and manage the cross-cultural integration problems.
Silvio Angori, Chief Executive Officer of PININFARINA S.P.A, believed that China’s auto enterprises not only need to have high-quality products, but they must have a clear brand positioning while going abroad. To compete in any new market, having a clear brand positioning is very important.
Eric Sentus, Executive VP Sales and Marketing, Incadea Group, agreed with Silvio‘s point of view and added: “When going abroad, the priority is to choose the right market. Brand fidelity is relatively high in the mature markets, more capital and cost would be required to enter these markets. While entering an emerging market where there is lower brand loyalty, the strategy is more likely to succeed.”
Ellis B. Chu, Director, Head of China M&A, Bank of America Merrill Lynch said that Chinese enterprises confront three challenges in their effort to expand their market and activities abroad. They must: 1. understand industry and consumer policies in the new market; 2. understand the foreign financing environment and 3. understanding the importance of public relations. He suggested that the first step for global expansion is to focus on public relations issues.
Daesung Yoon, Executive Managing Director, Korea Automobile Importer & Distributors Association (KAIDA) argue that if China wants to become a powerful automotive country, it needs to adjust its development model in all aspects such as changing the ecosystem platform, make overseas mergers and acquisitions as a springboard, add mobile services, and seek a breakthrough in the new concept cars.
-Published on page#20 November-2014 edition of MOBILE WORLD Magazine