Chinese consumers are renowned for their appreciation of quality food. With an increasing appetite for products that smell or taste better, International Flavors and Fragrances (IFF) is eager to capitalize on this demand.
IFF, a Fortune 500 company in food, beverage, scent and personal care, a new research and development center in Shanghai, a mega city already home to over 500 foreign-invested R and D centers.
Erik Fyrwald, CEO of IFF, shared his insights on the Chinese market and how recent policy changes enhanced the investment climate.
"Today, China is our number two country in the world after the United States and it's about 8 percent of our global sales. I expect China market and IFF in China to grow faster than the global. So I expect the importance of China to further increase over time - 1.4 billion people, highly educated, great infrastructure, of course great opportunities," said Fyrwald.
As the company's largest R and D center in Asia, the move brings total investment in this creative facility to 100 million U.S. dollars.
"So now with this creative center, we can create new products for the Chinese consumer and be able to produce them here in China. We also have such great capability here that will also serve other countries. So I see us growing fast in China, but also supporting global growth from this creative center and from China," the IFF's CEO said.
This year, China has rolled out several policies to boost the economy, including a recent decision to lift restrictions on foreign investment in the manufacturing sector, effective this November.
"I would like to see continued growth of the Chinese market, I think the recent stimulus and all the other efforts will result in that happening. There's been a temporary slowdown, but I feel like it's starting to come back again. I think that's very positive. And I expect as we grow further in China, and as we do more in China for other countries, we will expand our capabilities in China. We have six world-class production facilities in China today that serve the Chinese market, but also some for export. I expect that to expand in the future because in China, we can see production of a very high quality, very reliable supply chain and very cost-effective products," said Fyrwald.
As of June this year, Shanghai boasts a total of 985 regional headquarters for multinational corporations and 575 foreign-invested R and D centers, solidifying its status as a leading city for multinational headquarters in Chinese mainland.
Multinational firms expand R and D capabilities in China
