Survey Result: 2020 Swiss Business in China

by swisschambei in Legal / Tax / Consulting / Services

Our previous analysis of Swiss Businesses in China published in the 2019-summer edition of the Bridge was titled “Economic Slowdown becomes top concern”. The current survey was completed days before the Wuhan lockdown and the main concern was a further intensified “Economy Slowdown in China” with 69% of Swiss firms listing it as a challenge against only 51% in the 2019 survey. Finding and attracting talent remains the top internal challenge. With slower growth, however, the intensity of the challenge is diminishing while innovation and marketing become key competitive advantages to build up for success. Building these advantages is certainly more and more important as competition and rising costs remain the other key external challenges that businesses face in the Chinese environment. To sell, Swiss firms differentiate themselves very clearly from their Chinese competitors through “High Quality” and “Developing a Strong Brand”. They also woke up to the critical importance of R&D and market research, two elements where they are this year on a par with Chinese respondents. Chinese firms, traditionally weaker at branding and innovating, compete and differentiate by putting emphasis on service, distribution and providing cost effective goods and services (price/quality ratio). Overall and despite the geopolitical rivalry, trade war and increased top down management of the Chinese society, the Swiss have been confident about their business prospects for 2020 and in the 5 years to come. Their confidence level is as high as it has been in the last 5 years.

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