The lackluster global economy has underscored the localization strategy for big multinational companies as they struggle to maintain growth, CEOs of global giants like Lenovo and Coca-Cola said on Thursday at a forum in southwest China.
The ability to grasp local markets has proved vital for the success of Coca-Cola, the U.S.-headquartered beverage company that has sold its products to over 200 countries, said its CEO Muhtar Kent.
Speaking at subforum at the ongoing 2013 Fortune Global Forum in Chengdu, capital of Sichuan Province, Kent said the changing trends in retail and consumption models demanded companies quickly adapt.
Yang Yuanqing, chairman of the board of Lenovo Group, said the Chinese PC manufacturing giant has adopted different business models in different markets.
According to Yang, the company relies more on large retailers in full-blown markets in Western countries but focuses on opening retail outlets in emerging markets like China.
Facing the impact from the rising online B2C platforms, the company seeks to strike a balance between its online and offline sales in China, Yang said.
"Many Chinese consumers still prefer to try the products before deciding whether to buy them," he added.
Yang said Lenovo has also built factories and research and development centers in key markets and tried to take over local companies in its efforts to better localize.
The management of Coca-Cola now comes from over 70 countries, as the company highlights local talents, Kent said, adding that China has become an important supplier of personnel to the company's global operation. Endi
