The demand-side management officially put forward for China's economic road map has grabbed the attention of companies such as TE Connectivity, which manufactures connectors and sensors.
Reggie Lai, the company's vice-president and general manager in China, said premium industrial products, such as new energy vehicles and smart home appliances, provide a strong foundation for the country to boost domestic market expansion, but are also huge opportunities for companies, including TE.
"For instance, as the electronic vehicle industry continues to move from combustion engines to more sophisticated EV and autonomous driving technology, the value of TE's content in each car increases proportionally," he said.
Consumption upgrading is also changing the behavior of Chinese customers looking for good service and experience. As a result, the company has witnessed a surge in demand for telecommunication, remote education and online shopping in China, accelerating the construction of data centers and 5G networks.
Megarbane, from L'Oreal, said companies such as his are using the "marriage" of consumption and technology to better pamper customers with goods aimed at pursuing "a beautiful life".
The company is launching an initiative dubbed HUGE, through which global new product debuts, research and innovation center expansion, strengthened online-to-offline retail, and beauty-tech transformation are being advanced to navigate the Chinese market and serve local consumers.
Megarbane said better livelihoods and the stable employment rate in China, along with rising incomes, the increased willingness and power to spend, and burgeoning aspirations for a better life create huge market demand.
In addition, improved infrastructure compatible with consumption upgrading in logistics, 5G technology and big data presents new opportunities for the consumer market, he said.
China's market size, diversity and pace of innovation have long served as launchpads for new business trials. These factors have spurred multinational confectionery company Mondelez International to roll out smart operations across the supply chain, from production to retail, over the next few years.
Joost Vlaanderen, president of Mondelez China, said, "This will enable us to better serve the Chinese and international markets, seamlessly align with the needs of e-commerce for flexible and personalized product packaging and transportation, and to continue providing diversified and high-quality products for Chinese consumers.
"Our 'local-first' strategy enables us to get closer to local consumers with a faster response to their new needs for snacks. We will also collaborate with our partners to unleash the full potential of the domestic market."