FEATURE Story
2009 Catalyst for Change China’s Chance in the Sun 2009 will be noted both for the crisis and opportunities that it brought, particular for China, which has used the global economic crisis as an opportunity to take one step closer to ruling the world. Using the automotive industry for illustration, Namrita Chow also looks at the broader implications of these trends.
A strong presence in Asia is now synonymous with intelligent strategy for the future. Blueprints that existed before to build and expand in Asia quickly transformed into strategic moves. What once were only ideas, 2009 made realities. A strong presence in Asia is now synonymous with intelligent strategy for survival in the future--and the chance for strong growth. As the remnants of the global auto industry continues to look to China for salvation, so do many other sectors.
TREND 1: Building a strong base in high growth markets Contrary to most of the worlds, across Asia, investments and expansions are accelerating, spurred on by the lure of high growth. Global companies have seen sales plummet in developed markets, but not so in Asia. “China will remain a major driver of our growth in Asia,” says Franz Fehrenbach, chairman of the Bosch board of management. Bosch opened its first office in China in 1909. Today
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China will remain a major driver of our growth in Asia
Franz Fehrenbach, Chairman of Bosch board of management
the company has a workforce in China of 20,000 staff – the largest outside of Bosch in Germany. While Bosch’s global sales have taken a 15 percent year on year hit, sales in China are up 15 percent and so investments in China continue. In 2009 Bosch invested EUR160 million in China. Infotainment maker Harman International, which has its hands in the auto and mass consumer electronics market, is also expanding across Asia, cutting numbers in developed markets with new facilities
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