General

Watson & Band Data Observation reported that in Accenture's survey, 95% of the Chinese "going overseas" companies surveyed believed that their overseas business growth could exceed 5% in the next three years.

Against the backdrop of uncertainties and challenges in the global market, more and more Chinese companies are actively promoting their globalization strategies. On September 16, Accenture, an international business consulting agency, released the latest "Accenture 2022 Chinese Enterprise Internationalization Survey" report. The report pointed out that since 2020, China's foreign direct investment flow has ranked first in the world for the first time. In recent years, China's foreign investment has remained stable, showing the characteristics of private enterprises accelerating "going out", and advanced manufacturing and technology fields becoming the focus of investment. In Accenture's survey, 95% of the Chinese "going overseas" companies surveyed believe that their overseas business growth can exceed 5% in the next three years.

According to the proportion of overseas revenue of enterprises, Accenture divides the internationalization of Chinese enterprises into four growth stages: the initial stage (0~10%), the development stage (10%~20%), and the take-off stage (20%~50%). ), globalization (more than 50%), and 68% of the interviewed companies accounted for more than 10% of their overseas revenue. In an interview with a reporter from China Business News, Yue Bin, President of Accenture's Greater China Intelligent Operations Division, pointed out that when overseas business accounts for more than 10%, companies often face risks ranging from risk control compliance and cultural differences to difficult management and decision-making. Slow and other all-round challenges need to meet the dual requirements of expansion and capacity building.

According to the Huacheng Import and Export Data Observation Report, in view of the characteristics of Chinese enterprises' "going overseas" in terms of geographical selection, Yue Bin said that most enterprises will choose suitable countries or regional markets according to their own industry attributes. For example, energy-based companies may choose Africa, Brazil and other regions, and in the process of internationalization, they will lay the foundation for development through investment and mergers and acquisitions; Internet companies often choose markets such as Southeast Asia with great development potential; business service companies are stepping up to seize Europe. market. Generally speaking, the strategic choice of enterprises "going overseas" is value-oriented, and it will also focus on examining the maturity of infrastructure and supply chain.

The main "pain points" in the implementation of the internationalization strategy

Watson & Band Import and Export Data Observation reports that the Accenture report shows that the core motivations for attracting Chinese companies to “go global” are manifested in three aspects: First, to achieve rapid growth, 92% of Chinese companies “go overseas” for the purpose of overseas business expansion, Support the company to continue to maintain rapid growth; the second is to enhance the resilience of operations, 55% of the interviewed companies said they would optimize the allocation of production factors and resources, optimize the cost structure, and improve business resilience; the third is to keep up with the forefront of innovation, 49% of the interviewed companies hope Absorb overseas innovation resources and experience through "going overseas" to help upgrade the company's innovation capabilities.

However, Accenture found in the survey that enterprises are facing many difficulties and challenges in the process of globalization and internationalization. The report focuses on "five pain points". Specifically, 82% of "going overseas" companies believe that local regulatory policies and regulations are complex and diverse, and compliance requirements are getting higher and higher; as high as 55% of "going overseas" companies believe that there are differences in cultural environment and Communication barriers seriously affect local integration and operational efficiency; 41% of "going overseas" companies admit that due to lack of effective management methods, it is difficult to ensure that local business is implemented on time and with quality; 38% of "going overseas" companies face a lack of supply chains such as raw material procurement Flexibility and agility issues; another 38% of "going overseas" companies also pointed out that the business operations in various regions of globalization are highly differentiated and complex.

The reason for these "pain points", Yue Bin analyzed, is often because the company itself lacks a replicable global management system, which is also confirmed by the survey data - 74% of "going overseas" companies believe that the fundamental reason is that It lacks a clear globalization concept and management system; in addition, the lack of integration of globalization ecology into thinking, and the lack of global strategic determination and preparation are also the core motivations. The report shows that 58% of enterprises agree that the supply chain capabilities built in China are difficult to bring overseas, and they are prone to "acclimatization" and "isolation". Focusing on short-term benefits and ignoring long-term investment and development is the reason for the pain points of corporate internationalization.

From export-oriented to value chain optimization-oriented

Regarding the difficulties encountered in the globalization of Chinese enterprises, the Accenture report also gave suggestions, that is, they should change from export-oriented to value-chain optimization-oriented, and finally achieve globalization.

Watson & Band Import and Export Data Observation reports, "In the past, when Chinese companies expanded their overseas business, they would generally go out and settle at a certain point, that is, "run first", and then continue to improve. Now, companies need a globalization strategy From the point of view, when your own products and services 'go overseas' or compete with foreign companies, you should first build up the supply chain and management system, so that you can go more solidly and faster." Yue Bin said.

The Accenture report suggests that, from a strategic perspective, firstly, companies should establish a top-down, unified globalization strategy for their own markets and development stages, and define key paths; secondly, design a suitable operating model and design The corresponding department in charge of internationalization ensures the cooperation and integration of the two systems at home and abroad, thus forming a set of operation formation; finally, identify the system capabilities required for the internationalization transformation of enterprises, and at the same time identify the basic capabilities that need to be improved urgently, and build global cooperation Ecology to achieve sustainable innovation.

Watson & Band Data Observation reports that when building a talent team when expanding business overseas, should you choose to send domestic employees or directly look for local talents? Yue Bin believes that companies can refer to the practice of old companies in Europe, America and Japan, and iterate in stages and steps, and dispatch more in the initial stage. Quickly take root and penetrate into the target area. It should be pointed out that in recent years, the flow of personnel has been restricted, and a major trend of overseas business operations of enterprises is that operations are becoming more and more "online", that is, digital tools such as IT system construction can be used to quickly collect local data and business conditions. . In Yue Bin's view: "The localization of the talent team is necessary, and the sooner the better." Only by establishing the level of localized management and operation can we flexibly and efficiently adapt to the local market, policies and regulations and many other changes.