Editor's Note: With the global spread of the pandemic and the trend of globalization, isolation will make a country hard to develop, while build "external dependence" will help. The global economy has been highly integrated and connected together, rather than unilateral dependence. The Chinese economy globalization is on the way, and the pace of Chinese companies going overseas is being faster. There are chanllenges and difficulties for the local companies, but the current difficulties are not the reasons to give up going overseas.
Here we sincerely invite you to join IDCC2022 Data Center International Cooperation Summit Forum on December 8, 2022, to discuss related information and topics in this article. (registration information is at the end of the web page)
In the globalization, Chinese companies has accumulated experience in internationalization. The configuration of the whole industry chain and the huge production capacity could be the advantages for Chinese enterprises to go overseas.
The "internal strength" accumulated over the past 20 years will not disappear due to temporary difficulties. Only after experience the challenges of the international market, “Made in China” could reach a new level. The reform and opening up policy has allowed Chinese manufacturing to accumulate the potential for development and to integrate more deeply into globalization, which is the driving force to promote Chinese manufactures to develop Chinese technology and Chinese brands.
Twenty years after the development of the Internet, "China's Internet population only accounts for one-fifth of the global Internet population. If resources are not allocated globally and pursue products with large-scale effects, one-fifth will never be able to compete with the four-fifths, so "Going overseas will be an inevitable choice for Chinese Internet companies." The successful practice of a large number of emerging digital companies such as Alibaba, Tencent, and Huawei will also help companies in the fields of games, video, cultural creativity, education, and AI.
Patience, perseverance and resilience are the essential characteristics for all Chinese enterprises going overseas, and the expansion and cultivation of the global market will also be a long-term process. " High starting point, Low expectations, and Long-term development" could be solutions. Just because the global market contains vast blue ocean, it is worth preparing in a long-term sense.
A recently released report on the trend of Chinese enterprises going overseas shows that the expansion related to the digital economy is expanding from "digital to overseas" to "going overseas with digital". Small and medium-sized enterprises have shown a strong willingness to go international.
From the early Internet social networking, video and short video, Internet tools and other digital industries to go overseas, it has gradually driven overseas enterprises in traditional industries to actively use digital technology to carry out all-round digital transformation and innovation of overseas business, and achieve product upgrades overseas. and brand upgrade to enhance global competitiveness.
The First Part - Games Companies Going Overseas: it divided into web games and mobile games. From the perspective of market development, Chinese game developers are currently developing specific games for overseas markets and distributing games in global;
The Second Part -“Tool” Companies Going Overseas: the main regions are developed countries, and they also provide products and services to developing countries. China's most typical logistics, Internet economy and other business models are being copied in a global scale, and the regional markets are mainly Europe, Africa, Southeast Asia, East Asia and other places;
The third part is fundamentally different from the first two, that is, using China's successful business model and successful team, with the advancement of national strategies such as the "Belt and Road" initiative and "Made in China 2.0", to seek common development with the destination country and the internationalization of the RMB at the same time.
Chinese Companies Going Global ( Types and Number)
Overall, among them, games companies have the largest percentage.
The first three tracks of overseas companies’ layout are games, developer services, and applications. In the past five years, the revenue of Chinese games in overseas markets has increased by nearly 15 times. After years of industrial accumulation, Chinese game manufacturers have R&D strength and built-up experience.
To track the changing characteristics of Chines enterprises going overseas, the research department has summarized six features:
---- From Europe and the United States to Africa, Chinese companies are continuing expanding. 60% of the overseas business of overseas enterprises has involved more than three continents/regions. Southeast Asia, Europe and North America are still the preferred destinations for Chinese companies. At the same time, emerging regions such as South America, Africa, and the Middle East are becoming the "new blue ocean" for Chinese companies to go overseas.
--- From "Manufacturing" to "Intelligence", the power to internationalization will be upgraded again. Chinese enterprises going overseas are undergoing an upgrade from labor-intensive and capital-intensive product exports to technology-driven, innovative thinking, and brand-leading ones, realizing the transformation from quantity to quality; from exporting "China cost" to the world, "Chinese scale", and instead export "Chinese technology", "Chinese brand" and "Chinese experience" to the world.
--- From "Tradition" to "Emerging". New energy vehicles have opened up new tracks to go overseas. With the wave of electrification sweeping the global auto industry, both traditional car companies and new car-making forces represented by new energy vehicles are actively deploying overseas, hoping to achieve overtaking in corners.
--- From "2C" to "2B". the field of enterprise services has become a new hotspot in going overseas. From general enterprise-level services such as enterprise resource planning, customer relationship management, collaborative office, and human resources, to specific services required by vertical industries, to IT applications such as IT operation and maintenance management, database and big data analysis, the field of enterprise services is growing. Become a new hot spot for going overseas. Even some overseas companies that originally faced the C-side have developed their own experience in serving the C-side customers into new services serving the B-side, and expanded their business to the B-side.
-- From "Big" to "Small". Small and medium-sized enterprises have emerged overseas. Among the companies that have gone overseas, 63% are large companies and 37% are small and medium-sized enterprises. Among the companies planning to go overseas, 35% are large companies and 65% are small and medium-sized enterprises. Small and medium-sized enterprises have shown a strong willingness to go overseas.
—— From "Germination" to "Growth". Start-ups aim to go overseas when they debut. From games, developer services and SaaS, to hardware/mobile phones, e-commerce and other industries, more and more start-ups are born global. According to statistics, 45% of unicorn companies believe that overseas expansion is crucial. Among them, 82% of enterprises plan to expand overseas within 24 months.
Under the guidance of the Ministry of Industry and Information Technology, the China IDC Industry Annual Ceremony has been held for 16 consecutive years, with a total of more than 100,000 participants. The 17th China IDC Industry Annual Ceremony (IDCC2022) with the theme of "Reshaping the Data Center Industry" will be held in Beijing National Convention Center from December 6th to 8th, 2022. This ceremony focuses on the data center industry policy Changes in direction and development trends, closely following the pulse of cutting-edge technologies such as cloud computing, big data, artificial intelligence, blockchain, etc., to discuss the huge prospects for the development of the data center industry.
During the same period, the "Data Center International Cooperation Summit Forum" co-hosted by China IDC QUAN, Data Center International Cooperation Promotion Association and IDCNOVA will be held on December 8, 2022 at the China National Convention Center. This forum will invite representatives of domestic and overseas operators, well-known data center service providers, and overseas user companies to participate and share their practical experience in regional and international cooperation. At the same time, KZ Consulting will also deeply interpret the development status and development trend of the international data center market, so that the participants can have a deeper understanding of the overseas market, and provide theoretical and data support for business expansion.
Please scan the QR to register the Data Center International Cooperation Summit Forum, or contact pm.s@idcnova.com to register or for more information.
