Dear Members and Friends

Writing this edition of the newsletter at the end of September, clad in a T-shirt and shorts in the garden with sunblock on, emblemizes the uncharted waters we find ourselves in these days.

The climate is an obvious sign, and another is the altering consumer behavior. Discussions around raw material traceability, manufacturing processes and locations, product life cycle, as well as packaging have become more common and extended, necessitating an adapted approach by manufacturers, suppliers, distributors, and sellers.

One of the best examples of these changes in the industry was shared with us by a Chinese and a Swiss entrepreneur. The Chinese entrepreneur has established a Swiss base to serve its European clients and to find a location where, in the near future, the final stages of product manufacturing destined for Europe can take place. Switzerland was chosen for numerous reasons, among which the skills and language proficiency of the Swiss workforce were primary deciding factors.

On the other hand, the Swiss entrepreneur was exploring a new market entry and post-sales service approach. During the pandemic, consumer behavior in Chinese markets shifted towards a fully digitalized process. The old process had an excessive number of stakeholders involved, which resulted in products no longer being competitively priced. The diminishing number of brick-and-mortar showrooms and heightened demand for service centers beyond the 1st and 2nd tier cities called for a reevaluation of the existing setup.

Both examples show that significant capital and managerial time must be allocated to navigate the changes that markets around the globe are undergoing, all while preserving market share and profitability.

What can be learned from these different market conditions, needs and trends? Being present in the global markets that shape future trends becomes a competitive advantage in itself, as organizations learn what works in which market, and can adapt faster in the respective other markets they serve.

That is why the SCCC fact-finding mission is visiting Swiss companies established in China, and Chinese companies with a European or global footprint, to understand firsthand what is transpiring on the ground, share wisdom, and make observations during visits and meetings. Should this pique your interest, there are a few remaining seats available on the mission. Please find more details HERE.

For those unable to participate for various reasons but keen to comprehend what we have learned, we have coordinated with Swiss Export to host a webinar “China-Update 2023 - Schlüsselerkenntnisse zur chinesischen Wirtschaft ”on November 28, 2023. In this webinar, we will summarize the insights gained.

As we relish the warmest start to October ever recorded in Switzerland, we extend our congratulations to the People’s Republic of China on its 74th anniversary. As per tradition during the Golden Week holidays, the offices in China will remain closed.

We wish you an enjoyable October, potentially with a fall break to charge the batteries for the cooler and certainly busy months ahead. The next newsletter will be out in early November.

Kind regards

Hǎi nèi cún zhī jǐ, tiān yá ruò bì lín.

Long distance separates no bosom friends.