Chinese companies should consider three factors when looking for partners to expand overseas: infrastructure, local operations and global presence.
Editor’s note: This article is from WeChat public account “Financial Graffiti” (ID: caijingtuya ), author Huang Yulei (STT GDC China and New Market Investment Director), edit tuya.
When it comes to the global expansion of enterprises, the first thing people think of is the expansion of Western companies into the East and their entry into Asian markets such as India or China. But in the past 10 years, what we have seen is that more Asian companies are entering the Western market.
Chinese companies have become an important node in the engine and technological innovation of global economic growth. Chinese companies of different sizes are also actively expanding their overseas presence. In fact, in less than 10 years, China’s foreign direct investment has risen from a relatively small scale in the past to $100 billion a year, making China one of the world’s largest cross-border investors.
The Southeast Asian market is an increasingly attractive investment destination for Chinese companies. The region has a population of more than 600 million, and the middle class is also expanding. This also led to a 14.1% increase in bilateral trade last year, reaching a record $587.87 billion. In 2018, it also became the fastest growing year for trade between China and Southeast Asia over the past 10 years.
China launched a strategy of “going out” at the beginning of this century, encouraging enterprises to vigorously explore the international market and expand China’s foreign investment. Enterprises such as Byte Beat, Xiaomi and Tencent are outstanding representatives of this strategy in the new era. They are all well-known enterprises in China and they also hope to successfully expand their international markets.
China’s economic growth has slowed in recent years. Market diversification is a good way to buffer the economic cycle and the downward impact of the market. However, companies quickly found that entering the international market was not an easy task.
The Belt and Road Initiative has opened up new paths for trade, investment and economic opportunities for Chinese companies, but Chinese companies still have obvious challenges from infrastructure, culture and operations. By selecting the right partners to meet their data center needs for international expansion, Chinese companies have the opportunity to enter the overseas market more smoothly and succeed.
When choosing the right infrastructure partner to enter the international market, Chinese companies should consider the following three points:
(1) Powerful Global Digital Infrastructure
The total number of downloads of vibrato exceedsOne billion times, the total number of users in the world exceeds 500 million, and it is the most downloaded iOSApp in the world (as of the fourth quarter of 2018). In Thailand, 1 out of every 7 people use the app to create or share short videos. In order to manage this ever-increasing video capacity demand, eliminate any possibility of downtime, which will have a major impact on business operations and user experience, with a highly reliable data center to support and host these IT foundations for mission-critical operations. Facilities are indispensable.
Thus, by selecting the best managed services, highly resilient power and cooling infrastructure, and multi-layered security data center partners to support the storage and processing of mission-critical data, companies can ensure an ever-expanding The user base can enjoy a seamless and reliable security experience.
(2) A global network that allows you to quickly expand
In the past five years, Tencent has been the top player in the rankings of world game companies, and Tencent has further accelerated its overseas expansion. To drive growth in this area, companies must create a high-quality user experience based on a reliable and fast Internet connection. Low latency helps create a seamless user experience for gamers, which means that game companies must have infrastructure in densely populated areas to provide users with optimized gaming performance. As cloud games become more popular, data center partners must also ensure that businesses can connect directly to cloud service providers. At the same time, if an enterprise’s data center partners can meet a wide range of needs from a single rack to multiple megawatts by providing high-performance solutions, companies can focus on future growth while achieving current business goals.
(3) Learn about global partners in the local market
Every country has its own unique cultural and operational challenges. The company’s data center partners must be familiar with the situation in the host country and the local market. A veteran data center brand with a local team can not only help companies simplify the process of entering new markets, but also help companies develop local marketing strategies and enhance the overall user experience. A global partner with local expertise means that the company’s data center infrastructure can meet global standards, the architecture is fully compliant, and it meets local regulatory requirements.
As Chinese companies continue to explore new opportunities in overseas markets, their digital presence needs to be synchronized. If your partner has a strong digital infrastructure around the world and has a local team, then your overseas expansion can go smoothly without any problems.