The economic tailwinds that propelled multinational corporations (MNCs) to lofty heights in China over the past 35 years have dissipated. MNCs now face headwinds in the form of rising costs and more agile, more responsive local competition. Their growth is sputtering.
Despite these challenges, as well as a slowing national economy, MNCs are doubling down on China. For those bets to pay off, they will need more than a superior product and brand reputation. Winning in the “new” China call for a new competitive strategy—one based on marketing precision, organizational agility, and local collaboration and co-innovation.