Executives share expectations for 2023 market
Q2 Which business segment (s) of your company do you expect to see high growth in China this year? What are the new trends and interesting business opportunities in the Chinese market that your company might be keen to tap? How will you align your business strategies with such trends?
CRAPS: More than 80 percent of our profit pool growth in the next 10 years will come from premium and super premium segments, among which more than 50 percent will come from the super premium segment. There are many new trends that we've been looking at and laying out early on. First, growing consumer demand for health and well-being is an unstoppable trend that we are paying strong attention to. We are piloting brands like Michelob Ultra and Hoegaarden 0.0 to meet this need. Second, we've launched many innovations — line extensions loved by female consumers, such as the Corona sea salt fruity series and various fruity flavors of wheat beer under the Hoegaarden brand. Across the Asia-Pacific, we will continue to focus on our strategic priorities: (1) lead and grow the category through premiumization and expansion; (2) accelerate our existing business growth and unlock new business opportunities with digitalization; (3) continue to optimize our business by combining top-line growth and margin expansion, as well as leading ESG initiatives.
WU: We expect the cross-border e-commerce segment to grow continuously this year. It has been on a fast track in recent years, especially since the onset of COVID-19. The implementation of RCEP has ushered in a new wave of growth for the sector. It has enabled Chinese cross-border e-commerce businesses to expand their presence in regional markets, which generates more demand for international logistics. To tap the opportunities, this year, according to market demand, we have new facilities to be built and cargo routes to be launched to ensure ample air capacity and efficiency of cross-border logistics to assist local businesses going global.
MOHAN: China has a large-scale home furnishing and renovation market with great vitality, and we have seen many trends and opportunities emerging in recent years. One significant trend is that young consumers are focusing on human and personalized designs and experiences — and they are willing to pay for such products and services. In response to this trend, LIXIL leverages its rich product matrix to create diversified and personalized kitchen and bathroom solutions. On the other hand, as the concept of environmental protection and sustainable consumption grows stronger in China, sustainability is gradually being taken into consideration by consumers, and we can observe an increasing demand for green and healthy home solutions.
HAMAGUCHI: At Astellas, we are committed to turning innovative science into value for patients. In China, we have a determined goal — to become a leader in oncology and specialty care as we see huge potential in this regard. Demand for high-value and patient-centric healthcare solutions in these areas is on the rise, mostly driven by the large population, more spending on healthcare, as well as increasing public awareness of health issues. We have been dedicating ourselves to addressing evolving patient needs over the last couple of years and will continue our efforts into 2023 and beyond.
WAN: The transformation of the energy system should be a core element in any agenda for ESG strategies that are aimed at improving living standards of people and achieving sustainable economic development. That is why Aveva is now increasing R&D investment to support the development of hydrogen energy and lithium batteries. This also aligns with our vision to drive responsible use of the planet's resources. Aveva has deepened its commitment to supporting industrial customers on decarbonization and promised to reduce greenhouse gases across operations by 90 percent.
