As China faces a slowing growth and growing food scandals, its response to food safety will shape the path forward.
The 2008 Chinese milk scandal received the most attention.
China’s regulatory authority has since stepped up in their oversight. In the 12th 5-year-plan, food safety across the supply chain was highlighted and brought into the limelight resulting in the formation of China Food and Drug Administration (CFDA).
Today, Shanghai, home to the world’s busiest port, announced increased inspections and certification for food imports including low risks items like wine and chocolates.
These increases complexity and compliance costs; hindering foreign companies seeking growth in Greater China.
As companies look not just inwards in their operations and inevitably outward for future growth, CEOs will need to address the 3 challenges posed by global forces.
Firstly, how can they improve efficiency and reduce operation costs by staying close to their customer base?
Secondly, with increased regulations, how can they stay on top of compliance requirements?
Thirdly, how can they increase revenue amid a slowdown in China?
Our advice to companies is:
- Start with a clear understanding your value and what to focus on
- Guided by these priorities, work with strategic partners for market access and efficiency
- Support the effort through investment and streamline operations to improve efficiency and speed
Companies that take these steps can differentiate themselves and find growth ahead.
FIND OUT MORE