Le Petit Journal – French entrepreneurs: Adapting to succeed in China
Le Petit Journal – 3 French entrepreneurs in Shanghai: ‘Adapting to succeed in China
Cyril, Boris and Sébastien are entrepreneurs in Shanghai. Le Petit Journal interviewed them to find out more about what attracts French people to China and how they adapt to succeed in this market. Meet three passionate and exciting serial businessmen.
Le Petit Journal: Can you introduce yourself and your company in a few words?
Boris Duhamel: My name is Boris Duhamel and almost 15 years ago I founded Baseline, an international lighting design studio specialising in sustainable lighting design for the luxury and high-end hotel industries. Our projects range from concept to commissioning.
Le Petit Journal: Why did you decide to set up in Shanghai?
Boris Duhamel: We decided to locate in Shanghai for a number of strategic reasons. Firstly, Shanghai is a major economic centre in Asia, offering direct access to a dynamic, vast and ever-growing market in our sector. The city is also a hub for the luxury goods industry, and many brands have set up their Greater China or APAC regional headquarters here. By being on site, we can better understand local needs and offer a more personalised and responsive service.
Le Petit Journal: What are the advantages and disadvantages of being a French entrepreneur in China?
Boris Duhamel: Among the advantages, I would mention access to a dynamic market: China is one of the most dynamic and fast-growing markets (>5% per year) in the world. This offers many opportunities for French companies to develop and prosper. Then there is the good image of French brands, often perceived as symbols of quality, luxury and refinement in China. What’s more, China offers a wide variety of markets by sector and segmentation, enabling companies to find specific niches and stand out from the crowd. Finally, we’re supported by institutions such as the CCI FRANCE CHINE, French Founders and French Tech, offering resources and networks to make it easier to set up and grow.
On the downside, competition in China is fierce, with many local and international players. In addition, the authorities may restrict foreign investment for reasons of national economic security. Finally, cultural and linguistic differences require adaptation and a thorough understanding of the local market, which can take time and be costly.
Le Petit Journal: What are the biggest challenges you face?
Boris Duhamel: One of the main challenges is to find, recruit and develop talent with a creative streak to help maintain our quality of service and innovate. Competition is intense in the lighting design sector in China. This competitive environment makes differentiation and innovation essential and drives us to expand our service offering to remain unique. In addition, supply chain management can pose challenges, particularly in terms of delivery times, costs and the certifications required for lighting equipment.
Le Petit Journal: Are you confident about the future and why?
Boris Duhamel: I’m confident about the future for a number of reasons. Firstly, our company has established itself as a leader in the field of lighting design for the luxury and high-end hospitality industries in China, with a local service that is tailored and unrivalled. We have a strong reputation and portfolio of successful projects with prestigious clients. Secondly, we have a talented team and our commitment to sustainability and innovation means we can meet the expectations of our most demanding clients. Finally, our international presence, with offices in Hong Kong, Shanghai, Miami and Paris, gives us a global reach.
Le Petit Journal: What advice would you give to entrepreneurs looking to set up in China?
Boris Duhamel: First of all, understand the local culture and market: Before investing, it is essential to understand the business mentality in China. Success in China mainly involves adapting to the Chinese market, so it’s imperative to be prepared for a change of perspective. Secondly, develop a solid network, the famous Guanxi: China is a country of networks and it is crucial to develop solid personal and professional relationships. Make use of the networks of entrepreneurs and private and public players who are familiar with the local ecosystems. There are many French entrepreneurs in Shanghai who will be delighted to share their experience. You also need to surround yourself with local professionals to help you navigate the administrative and regulatory complexities and avoid the most common pitfalls. I also think you need to be patient and persistent: the Chinese market is huge and can be difficult to penetrate. It’s important to devote time and resources. I would also advise you to innovate and differentiate yourself, because the competition in China is fierce. This may mean adapting your products or services to local preferences. Finally, it’s a good idea to set up directly in China so you can better control operations and respond quickly to market needs. A key factor in this is certainly to appoint a local manager.
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