In this report KMPG attempts to examine the nature and unique character of innovative Chinese chemical companies.
The consulting firm does this not by looking at the powerful state-owned enterprises (SOEs) that have made their mark internationally, but by focusing on the more low profile, yet incredibly strong, players in the industry. These ‘local champions’, both state-owned and private, are influential, have large economies of scale, can innovate and upgrade, and harbour aggressive overseas ambitions.
The nature and characteristics of Chinese companies have changed dramatically over the years. Historical data and development trends of top domestic enterprises reveal certain unique traits. KPMG’s evaluation indicates three distinguishing features that have enabled some companies to emerge as formidable competitors in a complex, globalised environment. These traits include: gigantic scales of operations and extensive product portfolios; technological innovation; and improved quality and branding.