Multinationals Challenged: Chinese practices can benefit all companies
19:55:00, Jun. 17, 2020
How one multinational nutrition and wellness company is bringing its Chinese insights to tame the coronavirus.
CGTN 03-Apr-2020 As the coronavirus continues to spread around the world, one multinational is using its China best practices to protect its global employees from Covid-19. It's doing so while also maintaining sales. Our Zheng Junfeng looks at how one multinational nutrition and wellness company is bringing its Chinese insights to tame the coronavirus.
It's never been so difficult for multinational companies in decades. A pandemic that's caught many global firms unprepared, with factories shut, shipping disrupted and market demand plummeting. But there is a lucky few that are in better positions. H&H Group is a leading nutrition and wellness company listed in Hong Kong, with centers in Australia, Europe, China and the U.S.. Its CEO says the company is strongly positioned and its China factory resumed work as early as Feb. 3rd.
LAETITIA GARNIER CEO, H&H Group "We mostly manufacturing in China, Europe and Australia. Infant formulas, supplements, baby diapers. We've been relatively lucky because those goods are considered as necessity goods for the consumers by the governments in different countries, who enabled us to continue to produce almost normally. Our Guangzhou factory resumed production as early as Feb. 2nd."
H&H has been using its China practices in its companies in other countries. That includes strict hygiene rules and work distancing for employees. The CEO says that particularly includes digital engagement with consumers, an area in which he says China leads the world.
LAETITIA GARNIER CEO, H&H Group "We see a massive shift of digitalization of consumer education. We've actually seen our Chinese team sharing their good practices with their foreign colleagues now in France, in Australia, and in America, telling them how China is digitalizing, how to get to the consumer through this digital way. And it's proving really successful now."
H&H's strong position during the pandemic lies in the huge demand for its baby formula products and a surging demand for immunity related supplements such as probiotics and Vitamin C. Looking forward, Laetitia says it's important for a multinational company to build strategic resilience so that it can survive a global pandemic and come back stronger than before.
LAETITIA GARNIERCEO, H&H Group "This global pandemic that no one could've foreseen a few months ago reminds us just how much VUCA our environment is. Volatile, uncertain, complex and ambiguous. It's high time for global companies to show their ability to change and adapt. This crisis demands these stretched companies to rethink, to embrace change positively and fast and to look beyond the challenges for new opportunities and to become stronger after the crisis. So in 2020, this crisis is asking us to reshape our way to go to consumers, the way we manage our supply chain, the way we digitalize our communications and consumer education, the way we build our business model and be available for our consumers."
ZHENG JUNFENG Beijing "The pandemic is reminding people around the world how important their immunity system and their health management are. It is also reminding global companies of the importance of their risk management and their ability to adapt and change. These companies are big and pivotal to the economy. But their size and previous success should not get in the way of them learning good practices so that they can stand even stronger after the crisis. ZJF, CGTN, BEIJING."