THE SHIFT GUIDE.
A vibrant collection of speakers content that brings together the
results of questioning, interviewing, and shaping a community.
DISCOVER THE LINE UP FOR THE UPCOMING SHIFT DAYS SEPTEMBER 20TH & 21ST, 2024
Nailing it
What does the current AI revolution mean in concrete terms for brands and decision-makers? What tech trends are genuine gamechangers? How can companies build emotional bonds to their customers, but also to their employees? After one and a half days of concentrated brain power, a fleet of rickshaws drew up and whisked the entire conference off to the Oktoberfest! Anyone drawing a comparison of hartmann campus to that vibrant festival would conclude: SHIFT is the equivalent of the all-round panoramic view from the very top gondola of the Big Wheel.
And with a typical Oktoberfest delicacy in mind, the SHIFT slogan gets in September always a culinary makeover: “Overcome Legacy, he:n:dl Disruption”––which, roughly translated, becomes “Overcome Legacy, Don’t Be a Chicken about Disruption.” The sunny roof terrace of the campus already had a festival atmosphere, putting up a barrel of beer for a traditional tapping ceremony alongside bread dumpling carpaccio. But party aside, those one-and-a-half days had once again tackled some trenchant topics.
Take the question of how to build a community sustained by its long-term emotional bonds. The SHIFT Conference is an interesting example of just such a community, with guests as ever proclaiming their enthusiasm about the roster of speakers and the chosen themes. “My compliments!” said Maximilian Perez, representing the Günther Rid Foundation and responsible for the Innovation & Project Lead of the co-sponsor of the SHIFT event.
Like SHIFT, the Foundationheadquartered just 30 meters away from the hartmanns campus––views its role as that of a networking hub, where interests and proposals for solutions come together without always treading the same ground (or, to continue our Oktoberfest theme, roasting the same chicken), and a provider of advanced training in a wide variety of fields. Its aim is not to theorize, but to scrutinize: “What exactly is company X and company Y doing––and what are they perhaps not doing?”
Perez had already addressed a constant topic at the start of the SHIFT Conference, since many of the high-caliber case studies of WRSTBHVR, Bogner, and Prada revolved around that very same thought: When I go my own way, I’m going to leave the well-trodden paths behind.
It’s a courageous step, often requiring the boldness to seek out a target group niche. And in a sector where standard procedures have been relegated to mere theory and are ceasing to function in practice, it is a step that is becoming more and more vital.
Prada is often particularly reticent about revealing its strategic thoughts in public. But it’s no coincidence that Dr. Lesley Bleakney’s talk for SHIFT sketches the new directions in which the luxury brand plans to strike out. After all, showing more openness is all part of the concept. The new HR Director for Central Europe stressed that alongside the company’s reliance on high quality, telling a story would be a further focus. “We need to be able to tell people why our product is the best,” affirmed Bleakney, pledging to make the most of the “rich DNA” and generate interpersonal warmth. She describes it “as the final polish.” But in fact, it is also a form of disruption.
The important thing is to know the customers, to understand them, to think as they do. Max Berger, CCO from Highsnobiety, explained how to identify today’s “cultural codes” and pointed out that for the process to work, it is essential to be embedded in a culture; sporadically dipping in or tagging along are simply not enough to understand the deeper meanings.
A different and highly technological perspective states that the advancement of Artificial Intelligence will change everything. Hence, it will also help to understand consumers better based on the available data, and thus enhance customer satisfaction. The days of frustrating call centers and “Press 1 for…” are almost gone. AI assistants will understand and serve people better than people can. Multiple examples were provided by SHIFT sponsor Salesforce, followed by an outline of Nino Bergfeld, Retail Industry Advisor of the global giant, how AI will improve employees’ working routine. The vision set out by a new sponsor of the SHIFT Conference, Astound Digital, also reflected the topic. Primarily because the tech advisor has walked the walk and reinvented itself in order to better advise others, then improve the consumer experience at each individual digital touchpoint. The comments made by Astound Digital’s Head of Revenue, Anton Grebener, in his introduction echo our motto: Overcome Legacy, Handle Disruption. It’s a match!
SHIFT repeatedly succeeds in meeting new technologies with open arms, not closed minds––like the explanation by tech optimist, founder and CEO of Merantix, Nicole Büttner-Thiel in her exchange with presenter Tobias Viehoff, CEO Carl Viehoff, about how AI may soon be able to predict earthquakes.
Or speaker and CEO Avantgarde, Dr. Marc Schumacher’s affirmation that AI does not mean the end of all humanity––firstly, quite simply because it works best in tandem with humans in terms of both program design and development of concrete solutions; and secondly, because more artificial space will result in people developing a greater thirst for authenticity.
In a way, that was the main topic of the September conference: people are the focus. Mokhtar Benbouazza would agree. “If you don’t invest in emotional loyalty, you lose,” insisted the CMO of the s.Oliver Group. He noted that Germany has particular difficulty in investing in long-term marketing––investing in brand love, so to speak––“unless there is an immediate return on investment.” A further take-away from the conference as a whole was that many far-reaching changes are in progress, but our domestic business regions all too rarely step up with solutions to tackle them.
An excursion into the world of sports demonstrated the need for “authentic” experiences. The biggest modern event of our age in terms of spectator numbers is probably a UEFA World Cup or Super Bowl final. In keeping, pioneering AI thinker Büttner-Thiel pointed out that people are unlikely ever to want to watch two computers playing chess, even if the tech can now play more artfully than humans can.
So what would be better as the finishing touch to a conference like SHIFT than a visit to the wonderfully raucous, rambunctious Oktoberfest? Soon the Internet will probably be awash with more deepfake images of the event than genuine photos––so there’s no better time to experience the original and be there where it’s all happening.
Let’s go, people!
A number of talks at SHIFT addressed a topic that has become unavoidable: Artificial Intelligence will change our lives so dramatically in such a short time that we will find the winds of change whistling past our ears. Companies need to jump on board now before the ship starts sailing too fast for them to catch up. And who’ll jump first? The ones fearlessly looking forward to the wild journey ahead, of course.
When the SHIFT community has the chance of seeing and hearing about all of the latest achievements of Artificial Intelligence, it’s pretty great to have one of the latest robots sitting there as an example—like Figure 1, which Salesforce expert Nino Bergfeld brought into his talk. The sleek, suave colleague in his gleaming alloy suit would even be able to restore the audience’s jaws to their original positions after hearing truly jaw-dropping announcements. For instance, when Merantix founder and AI consultant Nicole Büttner-Thiel talked about how neurologists can analyze brain waves to recreate an image imagined in the mind. This is no less than a preliminary stage of mind-reading. The pioneering young thinker is well aware of the concerns raised by interventions of this kind in our inner lives. Yet in her view, her example simply shows how much technology can help us to understand ourselves.
Pretty far out. And talking of “far” and “ships,” the ship of the future has already cast off, and is heading into wide open waters. “What are you going to do with all this future?” challenged Dr. Marc Schumacher, opening the SHIFT Conference with his talk on the technology supercycle. An early AI experiment, like the venerable Deep Blue that beat Garri Kasparov way back in 1996, now looks like an ancient, clunky Commodore 64 placed next to a modern laptop.
And open AI systems like ChatGPT is making these achievements accessible to all.
The more datasets are available, the more effectively AI can work. As a result, well-fed generative AI is able not only to make solid predictions for the future, but to actually create something new. As these datasets expand their presence in many different areas, more and more networks are being built. For decision-makers at large-scale brands and companies, this signals disruption across the board. Customer service will undergo far-reaching change because AI can already outperform humans in some areas. Salesforce already gave an impressive outline of what could be in store at its “dreamforce” AI event, where “Sophie’s” attentive service included giving customers tips on caring for their newly purchased cashmere sweaters. AI assistants will soon crowd into every area, and will not spare the world of employment. Nicole Büttner-Thiel expressed her conviction that in only a few years, employees will start demanding AI assistants for their own jobs.
As SHIFT presenter Dr. Marc Schumacher pointed out, in recent times we have seen plenty of high-tech hypes that then vanished without trace. But, he warned, “we must take care not to make the mistake of underestimating developments in AI,” merely because we have no clear vision yet of where the journey is heading. One thing is certain: the more data points there are, the more successful generative AI will become, delivering artworks, films, novels, and much more on demand. In this case the “last frontier” will be the classic computer chip as Moore’s Law likely reaches its end. Schumacher quoted the prophecies of futurist Amy Webb that chips will soon reach the limit of their storage capacity—but also that their manufacturers will be unable to keep pace with demand. Human brain cells may be a replacement. In other words, the computer of the future will come from a lab, not a factory.
All this is possible, explained Schumacher, because multiple fields are becoming increasingly closely connected: the Internet of Things
is sparking an “explosion of data points” in Artificial Intelligence, which is compounded by progress in the field of biotechnology, and that cocktail then encounters Generation T, a human race that lives a fully digitalized life from babyhood to old age.
This compression was also addressed by Nicole Büttner-Thiel. Describing the paradigm shift taking place, she compared the early AI era with the Age of Enlightenment 500 years ago. At that time Florence was the epicenter of a clash between science and art, and a new, more positive image of humanity arose from the conflict. The Merantix AI Campus in Berlin, home to around 1600 members from an array of industries, is planned as just such an epicenter. For Büttner-Thiel, who has addressed the German government in an expert capacity, dismantling prejudices and fears is a key priority. Showing infectious enthusiasm, she proclaimed: “I often feel that what we need more of is a hunger for innovation, a desire for the future. That’s what drives me to communicate, to meet people where they are.”
But concerns about how workplaces are changing, and whether certain careers may even vanish altogether, are still passengers aboard that fast-sailing ship. For AI expert Nino Bergfeld of SHIFT sponsor Salesforce, the main priority will be to reassign tasks to the workforce once the laborious routine duties have fallen to the AI elves. As Bergfeld pointed out, the move would free up employees to take on more crucial and more central work. Studies have shown that companies are significantly more successful over the long term if they allot a certain percentage of their time to crafting strategic future-facing ideas. Bergfeld thus called on companies to relieve workforces—not of their jobs, but of routine tasks. That could help sweeten the transition for employees, because as Dr. Marc Schumacher commented, it’s a shame that washing dishes is still a job for humans while creative minds are worrying about how they will earn a living in the future.
As Büttner-Thiel, Schumacher, and Bergfeld unanimously affirmed, humans will always remain the focus of every relationship. Schumacher for one postulated that in just two or three years, the majority of social media content will be AI-generated. Or, to put it another way, fake. As a consequence, he predicted a “dramatic renaissance of the local, the physical place” that would bring people closer together as they became increasingly convinced of the value of authenticity. It will then be irrelevant whether the customer service agent, the online therapist, or the cosmetician are flesh and blood or chips and programs, particularly if they genuinely make real life easier.
It is worthwhile scrutinizing fast-paced developments like these, keeping a particularly close eye on the new lords of data harvesting; but there is no danger of computers taking over the world. To finish, some words of encouragement: Harvard Business School divided its best students into three groups and ordered the first to complete complex tasks alone, the second to solve tasks using AI only, and the third to decide when to use AI and when to rely on their own brainpower. The third group was far and away the winner.
Challenging
behavior
At the September SHIFT, Janek Feldmann; CEO of the small-scale fashion label WRSTBHVR, presented the fascinating story of its direct-to-consumer strategy––and could perhaps serve as a role model for many others wondering whether to strike out along their own uncompromising path.
The community appreciates brands that visibly prioritize quality and lifestyle over profit. But what is the best way to communicate that feeling? asked interviewer Nick Hartmann, Founder & Co-CEO hartmann consultants. The rapid-fire answer: it needs to be a genuine part of the brand. As CEO Janek Feldmann explained, “True value is created within the brand itself.” The designer calls the shots; sales are only made where they suit, and while big stars and other testimonials are definitely not turned away, they are equally certainly not bought and paid for. Now ten years old, WRSTBHVR is old enough to recognize that what is growing here has a solid foundation in long-term strategy.
SHIFT speaker Janek Feldmann joined the company in 2021 and became its CEO in 2023. He has found a way of enabling expansion to progress without betraying what the brand stands for. “We deliberately drop our margins if we need to. Better to go in with a low margin and try to convince the customer. Once that works, we can go for the rollout.” As Feldmann sees it, many major brands “lack a clear signature.” With this awareness, WRSTBHVR avoids blandness by always building on small-scale collections. The products primarily fall into the affordable luxury category. The smart thing about its approach is that this sales tactic is such a great fit for its target market. By adopting the principle of “less is more,” WRSTBHVR creates scarcity value that clearly sets its products far apart from conventional streetwear.
However, the brand’s DNA nudges it, perhaps unwillingly, toward the streetwear camp; on the lookout for a bold, brash name, Founder and Creative Director Fabian Altmann took “Worst Behavior” from a rap song. So Feldmann was equally clear that “If we slide into streetwear and the gangster market, we’re done. Of course we’re looking to build our relevance in the fashion sector, but we’ll keep breaking the rules of style as we do so.” In Feldmann’s view, all of us have a little ‘worst behavior’ in us, a rebellious spark. But as he pointed out, the community lives in a different world, so obviously WRSTBHVR’s aim is to completely fill that world somewhere down the line.
However, that aim by no means involves doing everything all at once. WRSTBHVR is in no hurry. No need for clothes rails groaning under the weight of product, or a brand groaning under the breadth of its catalog. It’s about quality before quantity. “Customers might be briefly impressed by marketing showmanship,” said Feldmann, but warned that where long-term goals are concerned, sticking to a clear line is far more worthwhile.
It requests bold step to tie in with the company’s strategy of pursuing its own sales channels. A direct-to-consumer approach is generally viewed as a high-risk tactic that would plague many CEOs with a constant feeling of missed opportunities. But Feldmann lives and breathes brand love, describing B2B as a “Pandora’s box” and advising great caution about who exactly to get involved with.
And WRSTBHVR does not always fit neatly into standard pigeonholes; for a start, it is a unisex label, but 70 percent of its products are bought by women. So should its hoodies go on display in the men’s or the women’s department? There is also the issue that Feldmann naturally sees the collection as taking its place alongside luxury brands, not streetwear, but its edgy style seems to be simply too edgy for some distributors.
Nevertheless, retail already accounts for around 30 percent of sales, which is incidentally in the higher double-digit millions. The hands-on, up-close experience is all part of the D2C approach. The company opened its first international store in London in May 2024; the Soho store is the Berlin label’s next living room, aimed at attracting precisely the target group that hangs out there. Vienna is under consideration, and a showroom opening in Paris is upcoming.
At the ninth SHIFT Conference, a constant topic between the lines is the importance of matching brand to marketing in order to create emotional bonds. The topic persisted even in the interview with the s.Oliver Group’s Chief Marketing Officer Mokhtar Benbouazza, who outlined how long-term conceptual thinking has been sadly neglected in Germany in recent years. Given this, carving out an individual route that fits the brand is often more effective than sticking to the same well-trodden paths, even though they may give a sense of security.
Bogner likewise dared to take the road less traveled, as Chief Commercial Officer Kristof Risse described on the second day of the SHIFT Conference. “We like to be driven by a strategic purpose around a connected marketplace,” he pointed out; at present, the luxury sports brand is forging ahead into the next generation by adopting an omnichannel approach. Global expansion without losing sight of its Bavarian roots is an approach that positively begs to throw open the core of the brand to create an uniquely distinctive image. Risse admitted in his session with Mohsin Qasmi, Senior Consultant hartmann consultants, that Bogner will always be primarily associated with the heritage in luxury sports fashion at the slopes––but even in the world of the mountains that was its original location, it’s possible to find a “blue ocean” via a clear focus on global strategic locations. Just look at WRSTBHVR.
Billionaires
around the
campfire
Podcaster and Journalist Tom Junkersdorf regularly graces the SHIFT stage, usually accompanied by his own choice of interviewees. This time, his guest was one of the most influential names in the entire world of sport. In Tom’s interview with Ron Wiegand, CEO of sports marketing giant Sportfive, it quickly became obvious that while Germany may still have major sports personalities, those personalities are no longer dependent on Germany for their marketing success. Tying in with the topic, Max Berger, CCO of Highsnobiety explained what to watch out for to achieve success on a globalized market.
When it comes to business meetings, these days there’s little need to leave home when online meetings will do the job just as well. But what about a Champions League final? Or Germany playing Spain at the Euros? Being there is everything! In the days leading up to major events of this caliber, Ron Wiegand suddenly finds his friends mysteriously growing in number. As Junkersdorf succinctly put it, “he’s got the tickets.” And maybe even backstage passes, too. After all, marketing mogul Wiegand is Senior Vice President Global Athlete/Team Marketing & Executive Director Teams Sportfive, the world’s largest sports marketing company, with annual sales of around EUR 1.5 billion.
The magnetics attraction of sport has taken on new strength, for a variety of reasons. First, “all of us still have two years of COVID to get over,” as Wiegand says; he sees a deep need for “campfire moments” that is crying out to be filled.
This drove the success of events including the Euros in Germany and the Olympic Games in Paris. Second, Wiegand observes a great “convergence” that is currently taking place. Sports personalities are now so much more than top athletes; they have become cultural assets of their generation, iconic figures with multitudes of followers that extend well beyond any reach that could be achieved by a public broadcasting service. This mash-up of fashion, entertainment, and sport likely began with David Beckham around 25 years ago and will certainly continue long after Cristiano Ronaldo––the Portuguese superstar who is the first sports billionaire in the world, as well as the first celebrity to break the one billion barrier in terms of social media followers.
So sports marketing must be a no-brainer, right? Well, it’s not that simple. As Wiegand explained, “The world of sport offers so many ways to burn through money.” A company or brand needs to be able to bring its own topics into play and pick the right individual in the right sport. It’s also advisable to keep enough funds on hand to activate the strategy, even if that “new recruit” brings plenty of reach to the table.
Wiegand could tell a string of tales about how and where these sports celebs are marketed––including Jürgen Klopp, now in Sportfive’s management stable––but not all of those juicy stories are for public consumption, so that our SHIFT audience had to content themselves with a teaser. One thing is clear: charismatic personalities like the ex-Liverpool coach have diaries packed with end-to-end advertising campaigns. Klopp can pick and choose his topics and partners.
Oddly, that is likely to mean that Jürgen Klopp will be a little less visible in Germany in the future, and the reasons are the same ones behind the predominance of Chinese companies outweighing German brands on the stadium banners during the Euros. “Their presence is a reflection of economic conditions,” pointed out Wiegand, warning that Germany and Europe had lost some of their competitive edge and others were rapidly filling the gap.
There is also a will to expand that comes from within sport itself. Wiegand sees the competition between FIFA and UEFA as a driver, with each side striving to prove to the other that it has more power and better products. It’s a trend that is by no means confined to soccer. Just take a look at the NFL, the world’s most successful pro football league. Match schedules are currently being ramped up in the additional markets of Europe and Central America. Germany now hosts one official NFL game per year, for which the League would be able to sell half a million tickets. It was no coincidence that the New England Patriots called in the services of an expert on the German market who was a walking personal testimonial himself––namely ex-pro footballer Oliver Bierhoff, who was a SHIFT speaker last year and likewise discussed sports marketing with Tom Junkersdorf.
But expansion involves more than a simple copy-and-paste job of marketing concepts that have already worked in Europe. At this point, we recall our SHIFT interview with Max Berger. He is a firm believer in the importance of cultural intelligence where the goal is to gain a firm foothold in other corners of the world. Highsnobiety is simultaneously a fashion label, market observer, agency and market influencer (“We influence the influencers“), and has been ahead of the curve for decades. Highsnobiety operates globally, so that the impact of cultural differences on global marketing strategies is a topic that regularly occupies Berger’s attention. “Authenticity is vital for establishing culture,” he affirmed, noting that “cultural hubs” were necessary in order to identify the standout nuances of new trends.
For companies aiming to understand a market, it is no longer enough to send a manager off on fun voyages of discovery. “You need global presence in the relevant cities, and you need to unpack the cultural playbook,” advised Berger. Yet global marketing also requires the brand to be embedded in the respective cultural code of the location. This is what Sportfive is currently engaged in with Manuel Neuer in Asia, setting up dedicated social media channels with content that has long been aligned to local markets.
Football, of course, has a major strength: many testimonials come along with cultural codes free of charge, in the form of their past triumphant victories (or tragic defeats). This makes them universal. At the same time, Wiegand noted he was observing a trend away from whole teams and toward individuals, who were increasingly proving to be the more effective ambassadors.
Entertainment, said Max Berger, reaches people through emotions. And sport is entertainment plus excitement at the uncertain outcome of a match. Wiegand spoke of one of the “last campfires” of our time, one of the few events still magnetic enough to bring together young and old, east and west, rich and poor at community fan events and around screens.
In his view, the attractiveness of sponsorship in pro sport is obvious; it is about engaging in local encounters––in, say, a stadium lounge––while the rest of the media world becomes ever more fragmented and can no longer guarantee extensive reach. At present, there is no end in sight to the marketing growth in this segment. Quite the opposite, in fact; new playgrounds are always being discovered. One case shows what happens when a music superstar and a sports superstar get together and combine their individual reach––as happened with Taylor Swift and Travis Kelce. In fact, said Max Berger, people on the wrong side of 40 need not necessarily understand every detail of Taylor Swift’s rise to success; the cultural codes in her songs are beyond many people’s grasp. And yet the singer and her “Rendezvous 2.0” still succeeded in expanding both her own reach and that of the Kansas City Chiefs in tandem. A result that takes globalized marketing to near-perfection.
A Shift in China’s Economic Model
“I’m not wearing the right attire here!” Emmanuel Hemmerlé humorously acknowledged, despite his Bavarian roots. On the second day of SHIFT, just two hours before Oktoberfest opened with the traditional barrel-tapping ceremony, most attendees donned traditional Bavarian costumes. No wonder, then, that the Frenchman, newly arrived in Munich from China, wasn’t dressed for the occasion! Yet, as a seasoned expert on China’s business landscape, Emmanuel Hemmerlé had a message that transcended European tradition and pointed toward our future: a necessary engagement with China.
A Shift in China’s Economic Model
Emmanuel Hemmerlé emphasized that while the days of China’s rapid economic growth are behind us, this does not signify a decline in the country’s global importance; quite the opposite. China is transitioning from an economic model reliant on real estate, infrastructure, and low-end exports into a new phase driven by innovation and technology. Over the last decade, Emmanuel noted, the share of real estate in China’s GDP has plummeted from around one-third to 19 percent—this shift is by design, not an unwanted plight, contrary to what is often reported in Western media. He explained that the intention is to redirect capital from the property sector into high-value sectors like advanced manufacturing and high-tech industries, which the Chinese government sees as the foundation of future prosperity. China’s core task is no longer to maximize GDP growth but to create a sovereign, technologically powerful economy, resilient against external efforts to hinder its ascent.
Emerging Opportunities Amid Slower Growth
Emmanuel Hemmerlé emphasized that China has already begun reaping the benefits, particularly in the electric vehicle sector, which few anticipated three years ago. In China, electric vehicle sales now exceed 50% of all cars, with the sector growing by 30% this year.
In just a few years, Chinese car brands have even captured a 20% market share in Mexico, Argentina, and Chile, with over 12% in Brazil and Colombia. The same trend is evident in solar panels, wind turbines, and increasingly, nuclear energy. Across the entire green economy, China stands as a world leader. Moreover, Chinese performance is also growing in biotech and artificial intelligence and is closing the gap with the U.S. in microchips. The country is advancing in modern railway technology and is already exporting its advanced trains. Additionally, it has a budding aerospace industry poised to compete seriously with Boeing and Airbus. Many in the West do not realize that China is becoming a powerhouse of innovation.
As emphasized by Emmanuel, Chinese consumers have changed significantly in recent years, becoming more discerning and sophisticated. Emmanuel Hemmerlé noted that Chinese brands are no longer content to simply follow their Western counterparts; they are innovating in product design, storytelling, and customer experience. This shift signals a broader trend: Chinese consumers are demanding higher quality and greater value from the brands they engage with, creating opportunities for companies that can offer innovative solutions and exceptional consumer experiences.
A question was raised as to whether Chinese players are also emerging in the luxury sector. Not yet, pondered Emmanuel, but they may emerge in the future. In fashion, watches and jewelry, this shift seems quite remote for now. However, in the auto sector, foreign luxury cars are increasingly being replaced by local options. For instance, Emmanuel recounted that in his compound’s underground car park, two years ago, 80% of the cars were high-end brands like BMW, Mercedes, Audi, Volvo, and Land Rover, with some Porsches, Ferraris, and Maseratis. Nowadays, more than half of the cars are Chinese EVs like BYD, Nio, and Xpeng—high-end models, no less.
Have the neighbors downgraded? No; they’re spending the same budget but enjoying cars with more advanced capabilities! Therefore, Chinese brands are penetrating a territory of luxury cars, which was unforeseen by Western leaders a few years ago.
Strategic Leadership in a Changing Landscape
Emmanuel Hemmerlé offered a clear strategy for European companies: meet Chinese competitors at their level. This requires a focus on innovation, agility, and a deep understanding of local consumer behavior.
was the need for Western companies to rethink their leadership approach. Success in China now hinges on leaders who can adapt, innovate, and think strategically. It’s no longer enough to pursue “sales, sales, sales.” The focus must shift to long-term planning, relationship building, and investing in local talent and innovation ecosystems.
It is also crucial for Western companies to be present in China. In the face of increased Chinese competition, disengagement is not an option. Failing to enter or, worse, withdrawing is a significant mistake, Emmanuel Hemmerlé believes. According to him, companies can learn from one of the most competitive, complex, and rapidly changing markets in the world. The China expert said: “I know
many companies that learn from China’s digital landscape to adapt their models and apply lessons to other markets, including their home markets! Additionally, it offers the opportunity to understand Chinese players and prepare competitive responses in other markets
outside China. Some European companies exemplify this proactive approach by forging alliances with Chinese startups and tapping into the country’s pool of talented graduates, positioning themselves advantageously in the innovation landscape.”
The Future of Engagement with China
Looking ahead, it’s evident that China will remain a focal point for global business strategy. However, Emmanuel underlines that companies must acknowledge that the rules of engagement have changed. The most successful players will be those that invest in understanding the complexities of the Chinese market, embrace its innovations, and lead with a mindset that transcends short-term gains.
These valuable insights remind us that China is not just a place to do business; it is a crucible for testing the ideas, strategies, and leadership capabilities that will define success in the global economy for years to come.