Oliver Neubrand on the topic “Doing Business In China”
18th Nuertingen Talks on International Management
By successful business leader Oliver Neubrand on the topic
“Doing Business In China”
The 18th Nuertingen Talks were held this winter semester at the startup space Future.Box of Nuertingen-Geislingen University. To allow both, local students and remote participants attend the event, the event was held in hybrid format. The speaker was Oliver Neubrand, CFO of Tooltechnic Systems AG & CO. (well known by their successful power tools brand Festool). He shared his long-time experience in international management on the topic “Doing Business in China”. According to him, setting up a business in China is a boon and learning about Chinese culture and language is very important for a smooth and optimal functioning of operations.
Some statistics he shared are referring to China being among the top 3 markets for German products, and therefore an important pathway for German companies seeking internationalization. Exporting to China is not a simple process, and also, companies like Festool are now evaluating production in China for the Chinese market as a long-term strategy goal. It was very interesting to learn that, while China still has a competitive advantage on labor costs, this advantage has been decreasing over the years because ofthe impressive economic growth. In addition to higher labor costs, there also seems to be a higher attention paid to environmentally sustainable practices. If labor costs keep increasing and negative environmental and social impact are accounted for in production costs, China’s competitiveness will most likely continue to decrease. Nevertheless, a local entity being close to the customers and their needs is essential for success in such a large market. Oliver Neubrand also spoke about the social credit system which has recently been established by the Chinese government, becoming a challenge and hurdle for local people and business, and also foreign companies in China. At the end of the event, students engaged and casually spoke with Oliver Neubrand and he encouraged students about startups and motivated them to look for international business and career opportunities.
Contact for scientific information:
Prof. Dr. Erskin Blunck