Japanese Firms in China Turn Tough Times Into OpportunityーNHK WORLD-JAPAN NEWS
Why It Matters
The strategies highlight how adaptable, locally‑focused tactics enable foreign businesses to capture new opportunities in China’s recovering market, offering a blueprint for investors navigating geopolitical and economic headwinds.
Key Takeaways
- •Japanese apparel firm halves stores, plans inland expansion.
- •Localized product displays boost sales, 3% growth year‑on‑year.
- •Firm targets Chengdu’s growing consumer base for future stores.
- •Japanese testing equipment maker partners with state‑owned enterprises.
- •Revenue of testing firm returns to pre‑pandemic levels, expects growth.
Summary
Japanese companies operating in China are confronting a strained bilateral climate and a sluggish economy, yet two firms illustrate how adaptation can turn adversity into growth. One apparel retailer, which once ran over a hundred stores, has cut its footprint by half and is now eyeing rapid expansion in inland cities such as Chengdu, where population growth sustains consumer spending.
The retailer’s president stresses that even in recession, essentials like underwear keep selling, prompting a strategic shift toward regions with rising demand. Front‑line staff discovered that altering product displays to match local preferences lifted sales, delivering a modest 3% year‑on‑year increase. Meanwhile, a Japanese manufacturer of high‑cost plastic‑testing machines is leveraging relationships with Chinese state‑owned enterprises, customizing equipment to client specifications and restoring revenue to pre‑pandemic levels.
Both firms cite concrete examples: the apparel boss’s belief that “people don’t stop wearing underwear” and the testing company’s rapid redesign of terminals for a state‑owned client, showcasing flexibility and meticulous service. These anecdotes underscore a hands‑on, market‑responsive approach that fuels recovery.
The broader implication is clear: foreign firms that embrace local consumer behavior, target emerging inland markets, and align with state‑owned partners can not only survive China’s downturn but position themselves for the next wave of growth as the economy rebounds.
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