In the post COVID-19 world, how can startups seize growth opportunities in China market and achieve international goals?
To find the answers, listen to the speech from the first-ever SG Innovation Community Day by Enterprise Singapore.
In this session, our Founder & CEO Wei Zhou was invited to speak on Internationalisation in China, and provided an overview of the current state-of-play in the startup landscape, as well as investor and business sentiments in the time of COVID-19.
China is leading the way in COVID-19 recovery according to the year-over-year change rate of retail sales and industrial production in 2020.
Source: China's National Bureau of Statistics, via CEIC Data
While the rest of the world were experiencing negative economic growth, China maintained positive growth in 2020.
Source: RaboResearch, Macrobond, IMF
To capture the tremendous business opportunities in the post COVID-19 world, it is critical for startups to fully understand the large and complex China market, and navigate the trends and challenges while entering.
1. 5 Unique Features of Innovation Ecosystem in China
Scale of Resources
China has the highest number of STEM graduates and patents filed in the world.
The government has been the key driver of innovation through macro policies, priority technology domains and areas of application.
30 years ago, China has one development model — “Copy and Paste". Today, multiple models coexist in the market, including "Copy and Redesign", "Integrate and Design" and "Application Research”.
Consumer adoption rate of new technologies has a speed unseen in any other markets.
Tolerance to data privacy allows access to massive amount of data for various applications.
2. 1 Unique Tech Innovation Ecosystem
By illustrating China's unique tech innovation ecosystem with the graph, Wei emphasised how a Local China Approach is Key to Success.
3. 5 Accelerating Trends in China Since COVID-19
Digital tools become increasingly sophisticated and popular, from B2C to B2B.
Declining global exposure
Rising importance of domestic markets, technology and capital.
Rising competitive intensity
Technology and agility drive winners to capture the lion's share of industry value.
Consumers come of age
Consumers (especially the young) are becoming prudent and health-conscious.
Private and social sectors step up
The private sector plays a stronger socioeconomic role, while the social sector rises.
4. 5 Challenges for foreign startups and SMEs
Wei spoke on the common challenges that foreign startups and SMEs face in China and how they should capitalise on available programmes.
Source: McKinsey Analysis
Demo-Day: Batch 2 GIA Acceleration Programme
XNode is proud to be the exclusive partner of the Global Innovation Alliance in Shanghai to accelerate Singapore B2B tech startups and provide access to potential Chinese investors, partners, customers, and talent resources.
This year XNode worked with 8 Singapore startups to explore internationalisation opportunities in the "post-epidemic" China market.
Curious to see how they plan to internationalise?
Don't miss the coming onlineDemo-Day of 2020 China-Singapore Innovation Launchpad. 8 Singapore startups, ranging from AdTech to MedTech and more are ready for their virtual Demo-Day to Chinese investors and industry partners.
Virtual Demo Day (Bilingual)
August 20, 14:00 - 16:00 (GMT+8)
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