Companies in China are deploying a variety of strategies to navigate the transition from a high to a lower growth environment. According to latest research released today by IMD’s China Company Transformation Indicator (CCTI), the top-performing companies are succeeding in the competitive Chinese market by prioritizing innovation, aligning with government policies, maintaining business diversity, focusing on ESG, and excelling in customer engagement.
This CCTI analyzed leading companies’ transformation capabilities across three key sectors – Food and Beverage, New Energy Vehicles (NEV) and New Materials.
Commenting on the research, Mark Greeven, Professor of Innovation and Strategy and Director of IMD China, said: “In the dynamic and ever-evolving landscape of China’s economy, businesses are navigating through an era of transformation. As companies transition from the double-digit growth since the 1990s to a focus on sustainability and innovation, the need for a comprehensive understanding of what it takes to thrive in this complex market has never been more critical.”
The top-performing companies in the food and beverage sector excel in Early Innovation, allowing them to quickly adapt to shifting consumer preferences for healthier options. Coca-Cola has reclaimed its leading position in the 2024 ranking.
China’s New Energy Vehicle (NEV) sector has experienced rapid growth, driven by technological advancements, government support, and changing consumer preferences. The CCTI highlights the dominance of domestic brands like BYD and Geely, along with new players such as Xpeng, Li Auto, and NIO, while Tesla remains the sole foreign brand in the top five.
The New Materials sector in China is crucial for many high-tech industries and is currently dominated by foreign multinational companies. However, domestic companies like Beijing Easpring Material Technology, and Semcorp have made significant strides, breaking into the top 10 rankings.
Earlier this year, the indicator published its results for the apparel, pharmaceutical, and technology sectors.
Find the full results: IMD China Company Transformation Indicator 2024
