Companies relish potential for opportunities

French businesses expanding their innovation strategy in Chinese market

China's new rounds of reform, opening-up and consumption upgrades will create new opportunities in services, quality control, food production and safety, medical processes and fintech, areas where French companies have proven to have technological expertise, said French business leaders.

In addition to enhancing bilateral cooperation in traditional sectors such as aeronautics, agribusiness, luxury goods and aerospace, the future of China-France business ties will also be enriched by both sides' surging demand in the service sector and regional connectivity, said Christophe Lauras, president of the French Chamber of Commerce and Industry in China, or CCI France China.

Sodexo Group, a French food service and facilities management provider, is focusing on China as a central aspect of its future innovation strategy.

"Our company has been a huge beneficiary of the policy of China's opening-up ...and continuing to develop the market is a good thing," said Martin Boden, Sodexo's president for China.

Boden said the Chinese government has issued many policies to support the development of foreign companies in China, especially the Foreign Investment Law passed earlier this year. The new laws will provide a better environment and stronger protection for foreign investors in China. Boden said Sodexo is greatly encouraged and wants to see more opportunities for further development.

Boden said he believes that China is taking the lead in the era of digital interconnection. The country not only possesses high-tech technology, but more importantly, it takes advantage of technology to make people's lives even happier.

Eager to seize more market share, he said the company works with a number of outstanding Chinese technology and innovation companies to strengthen its ability to anticipate client needs and enhance consumer experiences. It said it also hopes such innovation not only benefits local markets, but also the rest of the world.

Sodexo announced its strategic venture capital arm - Sodexo Ventures - invested in Meican, a Chinese technology company focused on digital food solutions in the corporate environment, in August.

The investment has further strengthened Sodexo's service ability, and demonstrated the shared objective of elevating the food service industry in China.

The Paris-headquartered company, which provides services ranging from food and healthcare to sports and education, has operated 650 service sites in 50 Chinese cities during the past two decades. Its 16,000 employees in China serve more than one million consumers each day.

Boosted by the country's ongoing consumption upgrades, French nutrition giant Danone is also deploying more resources and expertise to develop the Chinese market.

The French company is currently adding a new food for its special medical purpose factory in Wuxi, Jiangsu province, to expand its current capacity. Its first self-owned cross-border e-commerce warehouse in the Chinese mainland was also inaugurated at the Nansha area of China (Guangdong) Pilot Free Trade Zone, which helps Danone Nutricia's products ordered online to be directly shipped from its overseas factories to the Chinese mainland.

"We have witnessed the rapid, stable growth of China's consumption market. Danone believes that the China International Import Expo not only brings premium-quality imported products from all over the world to China, but also showcases the country's determination to further open up and embrace economic globalization and free trade," said Bruno Chevot, Danone's senior vice-president.

Chevot said by seizing opportunities that come with China's further opening-up and reform, Danone will continue to bring more healthy products, as well as import research and innovation achievements to the Chinese market.

The French company generated 19.03 billion euros ($21.24 billion) in sales over the first three quarters of 2019, up 2.1 percent year-on-year.

Supported by the smooth execution of development plans, the Chinese market led the growth in some businesses, such as infant formula and advanced medical nutrition, both of which reported double-digit sales growth in China.

After entering the China market in the late 1980s, Danone today operates eight plants and has 9,000 employees across the country, which has become its second-largest market in the world. Specialized nutrition, waters, essential dairy and plant-based products are its core businesses.

Since the reform and opening-up policy produced a strong economy and raised living standards - in particular in the service industry - Gary Rosen, chairman and chief operating officer for China operations of Paris-based AccorHotels Group, discovered that the Chinese market has been the fastest-growing for inbound and outbound tourism over the last 10 years.

China is now the No 1 outbound travel market in the world. The rise of China's economy in the last few decades has enabled tourism to flourish globally.

"With the growth of Chinese upper-and middle-income earners, travelers are increasingly looking for authentic experiences, individualized accommodation styles, the chance to be deeply connected with the destinations they visit and for luxury that is about feelings as much as it is about products," Rosen said.

In October last year, AccorHotels Group picked up a 50 percent stake in California-based SBE Entertainment Group, which owns hotels and commercial residences, nightclubs and restaurants, for $319 million.

Rosen said the partnership combines the best of both groups by offering guests lifestyle concepts in the luxury segment.

"With SBE's brand portfolio under its belt, AccorHotels is taking a significant step forward in its group's expansion in key gateway cities in the US and new global destinations including China, particularly in some of the dynamic and vibrant destinations," he added.