China leads in key sectors, leading management institute

GENEVA (XINHUA) – The 2024 Future Readiness Indicators Report by the International Institute for Management Development (IMD) found that China leads in
key industries.

“Competitiveness in all three sectors is increasing,” director Howard Yu of Switzerland’s IMD Center for Future Readiness told Xinhua on the sidelines of the report’s release.

The report ranked 88 of the world’s largest financial, automotive and packaged goods companies in terms of resilience.

In financial services, it showed that Mastercard, Visa, DBS and JPMorgan continue to stay ahead of the curve through partnerships and acquisitions, and that there is a greater focus on internal innovation.

Meanwhile, in the automotive sector, Tesla maintains its lead in the electric vehicle (EV) ranking, but its undisputed leadership position is being questioned on many fronts.

Chinese electric vehicle maker BYD is making notable progress, according to a report, as advances by Chinese manufacturers signal serious competition for established automakers.

“From a Chinese perspective, cars are definitely the big winner. From 2022 onwards, Chinese automakers are truly increasing their future readiness compared to other traditional automakers such as BMW, Mercedes-Benz and Toyota,” Yu said.

“A company like BYD continues to improve its business performance in both the short and long term. We see a lot of significant innovation coming from China in this sector,” he said.

Yu said other Chinese automakers, including Geely, NIO and Li Auto, have significant pricing advantages over Western competitors.

The report found that in consumer packaged goods, L’Oreal has overtaken industry titans Coca-Cola, P&G and Nestle by implementing technological innovations on an unprecedented scale to meet the demands of the modern consumer.

“When it comes to consumer packaged goods, whether it is personalization, omnichannel shopping or experiential shopping, China is once again leading the way. Chinese consumers are very demanding. Whether it’s Coca-Cola, Procter & Gamble or L’Oreal, the way they think about the Chinese market is extraordinary,” Yu said.

“Goods and business models are fundamentally invented in China, earlier than in the rest of the world. “Many people come from China because e-commerce is much more advanced than in other markets,” he added.

The scientist stated that the innovations of Chinese companies are now global.

“It is very interesting to see what kind of innovations domestic companies are able to implement and scale. These innovations don’t just stay in China, but are now spreading across borders and internationally. “I believe it is necessary for Chinese companies to enter the global market,” he said.

To thrive, companies must prioritize technological innovation, deliver the personalized experiences consumers crave, and remain adaptable, the report says.

To measure future readiness, IMD assessed organizations’ financial performance, their investments in growth and innovation, leadership and organizational culture, operational efficiency, as well as market position and competitive dynamics.

IMD is a renowned business school with campuses in Lausanne, Switzerland and Singapore. It has a domestic team in Shenzhen, China.