2022 THE 5TH ESSEC SINO-FRANCE BUSINESS FORUM REVIEW

On November 18th, 2022, after three years of postponement due to the pandemic, we welcomed the 5th Sino-France Business Forum, hosted by ESSEC Chine in collaboration with ESSEC Alumni. The forum was held both online and offline simultaneously at ESSEC La Defense campus in Paris, Beijing, Shanghai, and Shenzhen with great success. This time, we had a record-breaking number of more than 450 registered participants to the forum globally. 

Focusing on the theme of "Post-Pandemic Business between China and France", the forum invited eleven companies from four major sectors: finance, investment, technology, and digital retail, to share exciting insights. The audience actively participated and had in-depth discussions with our guests on current challenges and future prospects of the various industries. 

Finally, the conference ended on a high note with exquisite French pastries and cocktails. Read on and check out what was shared during the forum!

Please find the complete meeting notes in "Read More". 

请在“阅读原文”中下载完整版论坛记录。

• Andre said in his speech that China wants to become a well-functioning socialist country. And in the current situation, China needs the world, and the world needs China.

• Even if China is a strategic competitor, as the EU mentions, China has never been a military threat to Europe, as reminded President Macron. Decoupling from China is impossible in the next future.

• We must realize that despite all negative comments on China and its demographic and economic challenges, the Chinese economy is still number 2 in the world and continues to grow. For many products, China is the world's number one or two market. China has become the world leader in many fields, especially in climate change: solar panels, wind power, car batteries, etc.

• The crisis in China will eliminate companies not adapted to the current time, but the ones that survive will be stronger.

  
  

• China must improve its soft power, attract new people after the covid crisis, and encourage entrepreneurs.

  
  

We are seeing on a global scale that many things are changing, such as localized supply chain and geopolitics tension. For many multinationals, this is called either localize or go home. We've also seen quite a lot of refloating on the capital side. And of course, the rising prices of energy and commodities.

In China, we are seeing the lost middle class. You either go very premium, or you go very cheap in a way. The country is putting more resources into the real economy and consumption. And many graduates are going back to their hometowns after their education. 

How do you actually grow your business now in China if you are a consumer brand? 

In China, a good CEO is first a good demographic expert because the population is going through structural change every five years. 

1. Young families with children are decreasing significantly in the higher-tier cities due to the younger generation's unwillingness to have kids.

2. There are more and more people in their mid-forties who have made enough money to retire, and they have a lot of resources and money to spend;

3. More people are actuallygoing back to their hometown, so we have more and more“小镇青年” (younger people choosing to live in the suburban cities) than higher-tier city familiesnowadays.

Let’s look at the different income classes. The typical shape of the population is changing drastically. The normal shape is a triangle or pyramid. It will be an inverted pyramid in the next 5 to 10 years. We are going to have a very big group of upper middle class, affluent people.

Speaking of the decline in the economy in China, the problem was COVID. However, it is an excellent opportunity for top brands to improve and capture older consumers who have gone through a very difficult life and haveendured a very difficult life and accumulated a large amount of resources and capital. These consumers are looking for brands that they can enjoy and 'pay back' their difficult life.

We're seeing a huge change in terms of how Chinese consumers perceive brands. A brand must tell more stories to match what the consumer wants. The latter is looking for much more, whether the value that the brand is pursuing is actually resonating with bigger themes and trends, for example, sustainability. 

Many Chinese homegrown brands have started to become Chinese luxury brands, which is what Western brands, especially French ones, have been doing. China and the West are converging by getting into the essence of what a consumer product is about: having a good product with a good value proposition for consumers. 

And the fact that many Chinese brands are internationalizing their business is not a way of taking shares but a way to make the coupling happen, to find more commonalities between China and the West.