Business
2020.04.03 18:52 GMT+8

Multinational companies use Chinese practices to cope with pandemic challenges

Updated 2020.04.03 18:52 GMT+8
By Zheng Junfeng

As the coronavirus pandemic recedes in China but expands globally, some multinationals find themselves vulnerable to the ravages of the disease with factories shut, shipping disrupted and market demand plummeting. However, some are adopting their Chinese entities' practices to cope with the wide variety of challenges facing businesses.

H&H Group is a nutrition and wellness company listed in Hong Kong, with centers in Australia, Europe, China and the U.S.. Its CEO said the company is strongly positioned and its China factory resumed work as early as February 3.

"We (are) mostly manufacturing in China, Europe and Australia. Infant formulas, supplements, baby diapers. We've been relatively lucky because those goods are considered as necessary goods for the consumers by the governments in different countries, who have enabled us to continue to produce almost normally. Our Guangzhou factory resumed production as early as February 3," said Laetitia Garnier, CEO of H&H Group.

H&H has been using Chinese practices in its companies in other countries, including strict hygiene rules and work distancing for employees. The CEO said that particularly includes digital engagement with consumers, an area in which she says China leads the world.

"We see a massive shift of digitalization of consumer education. We've built webcasts, live streaming, and an online community. We've actually seen our Chinese team sharing its good practices with their foreign colleagues now in France, in Australia, and in America, telling them how China is digitalizing, how to get to the consumer through this digital way. And it's proving really successful now," Garnier told CGTN.

The group's strong position during the pandemic lies in the huge demand for its baby formula products and surging demand for immunity-related supplements such as probiotics and Vitamin C. 

Laetitia Garnier, CEO of H&H Group, sees it's time for global companies to show their ability to change and adapt. /VCG

Looking forward, Garnier said it's important for a multinational company to build strategic resilience so that it can survive a global pandemic and come back stronger than before. 

"This global pandemic that no one could've foreseen reminds us just how much VUCA our environment is… volatile, uncertain, complex and ambiguous. It's high time for global companies to show their ability to change and adapt," she said.

And the CEO believes that this crisis demands these stretched companies to rethink, to embrace change positively and fast and to look beyond the challenges for new opportunities and to become stronger after the crisis. 

"So in 2020, this crisis is asking us to reshape our way to go to consumers, the way we manage our supply chain, the way we digitalize our communications and consumer education, the way we build our business model and be available for our consumers," she added.

The pandemic is reminding people around the world how important their immunity system and their health management are. It is also reminding global companies of the importance of risk management and their ability to adapt and change.  

These companies are big and pivotal to the economy. But their size and previous success should not get in the way of them learning good practices so they can stand even stronger after the crisis.

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