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Chinese companies are no longer simply seeking to sell their own products in Europe or the United States. They are now investing more heavily in well-established Western brands. In fashion, sports, food services and retail, this strategy allows them to quickly acquire a strong brand image, expertise and an international presence.
According to Sandrine Zerbib, an expert on consumer trends in China, this development can also be explained by the difficulties some Western companies have faced in the Chinese market. She believes that the way these companies operate no longer always meets the expectations of highly digitalized Chinese consumers, who are particularly receptive to innovation. Chinese groups, on the other hand, have strong expertise in data management, logistics, automation and speed of execution.
This advantage is particularly evident in the textile industry. Despite her criticism of Shein, Sandrine Zerbib acknowledges the efficiency of its production system, which is capable of quickly adjusting production volumes and distributing small orders across a large number of workshops. According to her, European companies could draw inspiration from some of these methods to improve their industrial efficiency. The challenge, therefore, is to strike a balance between the need to protect European companies and the benefits of cooperating with Chinese businesses in order to learn from their technologies and organizational methods.
Sandrine Zerbib also points out that Chinese acquisitions in the West are nothing new. Since the 2000s, several major deals have taken place, such as Lenovo’s acquisition of IBM’s PC business, Geely’s acquisition of Volvo, and Haier’s acquisition of General Electric’s home appliance business. According to her, these acquisitions were successful largely because the buyers managed to preserve the identity of the brands they acquired.
However, not all acquisitions have been equally successful. Several Chinese investments in Western companies have produced disappointing results. Nevertheless, Sandrine Zerbib believes that the new wave of acquisitions now appears to be more structured and carefully planned, although she warns that some failures will remain inevitable.
Ultimately, this new strategy reflects a shift in China’s ambitions. It is no longer simply about producing at low cost or gaining access to Western markets, but also about moving upmarket and building companies capable of competing with major multinationals. For European companies, the challenge will therefore be to “find the right balance” between protection and cooperation, at a time when Chinese groups are developing increasingly strong industrial and technological capabilities.