(Yicai Global) March 31 - As a major consumer market, China is changing the ways it collaborates with overseas brands and foreign companies should use the country as their global research and development center, according to the head of Asia-Pacific consumer products at Boston Consulting Group.

Chinese firms have made great progress in strengthening their brands and creativity in recent years, Josh Ding told Yicai Global. Foreign businesses will lose their advantage in the Asian country without having strong teams and products, he added.

“Because Chinese companies buy foreign brands, it is more common now for local managers to lead overseas teams and offer their thoughts and experience abroad,” Ding noted. BCG previously advised foreign firms on how to manage their China arms, but now it does the opposite, he said.

Foreign enterprises may find it hard to make money in China, as their local rivals are becoming more sensitive to potential global profit makers, Ding pointed out. They should use their strengths, such as global supply chain and designs, to better appeal to Chinese consumers, he said.

China can become the global R&D center for overseas companies, allowing them to access and use the market's data to serve the world.

Chinese firms are better at customer relationship management, and the rest of the world learns from them how to manage crowd data, consumer data, and how to reach more buyers, Ding stressed. They also lead in digitalization, having a digital media and sales approach, and an innovative method of integrating front, middle, and back offices, he noted.

"We found in our research that Chinese customers are the smartest learners," Ding said when talking about the impact of ChatGPT on the consumer market. "E-commerce should focus on content to fulfill shoppers' needs, and ChatGPT could be revolutionary, allowing clients to ask more questions, bringing fundamental changes to the decision-making chain."

Editor: Martin Kadiev