October 28, 2019. Shanghai – “As a marketer, the one thing you don’t like is stability.”

This was just one of the messages delivered by Dow Asia Pacific President Jon Penrice to the nearly 70 members of the CEIBS community who gathered at our Shanghai campus this evening for our latest CEIBS Executive Forum. Mr. Penrice’s talk, entitled Creating Value in an Ever-changing Chemical Industry, examined some of the forces driving change and how companies can create value by translating these into opportunities.

“One thing that is constant in any industry is the constant of creative destruction,” Mr. Penrice told the audience. “All companies are in a constant state of change. The ones who think they are stable are the ones who are probably the next victims of change.”

As an example of this, Mr. Penrice pointed to the chemical industry, where only three of the top 10 companies in 1985 in terms of sales are still around today. Nevertheless, despite the challenges posed by change, he said that companies should learn to embrace them as opportunities.

 “As a marketing organisation you desperately want to have something that is disruptive,” he added. “Often many other parts of your organisation don’t like it at all because change is a threat or change equals fear, but as a marketer you need to embrace disruptive innovation.”

For the chemical industry, one source of disruption which has come naturally on its plate is the subject of sustainability.

“Sustainability will be or is already a defining force in the chemical industry,” Mr. Penrice said. “It’s arguably the biggest threat or differentiation opportunity – so every single player in the industry is working on what their sustainability strategy is.”

The chemical industry has long operated on a linear model, taking raw material from the earth, processing it and passing it down the value chain until it is converted into something else – and eventually becomes waste. During his presentation, Mr. Penrice said he believes that this model is going to disappear and be replaced by a circular one.

“We can’t afford as a society to continue the linear business model because we don’t have enough materials,” he continued. “But, worse, we don’t have the climate or the carbon footprint availability for the economic development that we want. So, the only way we can solve this paradox of rising living standards around the world is we have to change the model.”

As it turns out, however, moving from a linear model to a circular one is not so easy. When it comes to the chemical industry, Mr. Penrice explained, the inherent challenge in taking waste from the end of a linear chain and returning it to the beginning of the chain is two-fold. For one, it is technically complicated to un-process waste back into raw materials and, moreover, it is not easy to do economically.

“If that sounds like bad news, the great news is that this will all be a source of innovation,” he said. “[Because] a circular company is going to require truly innovative chemistry and business models to figure out how to make this linear value chain go circular.”

Another source of disruption – and potential opportunity – facing the chemical industry has come in the form of digitalisation. Despite being a slow adopter, Mr. Penrice predicted that the industry will begin to catch up in the next five to ten years.

“The chemical industry has been a big laggard in digitalisation mainly because when you get down to it, it’s big physical stuff, it’s not easy to put in a cardboard box and ship and it has significant EHS concerns,” he explained. “So there are many excuses why the chemical industry isn’t a digital leader, but it doesn’t mean it won’t happen.”

In particular, he said he sees great potential for digital disruption shaping up around the distribution process and how distributors, in particular, will respond to the reshaping of the value chain.

“The traditional role of just connecting the buyer and the seller will probably go away, but the physicality of the industry doesn’t go away,” Mr. Penrice stated. “So, keeping inventory, shipping stuff, making sure of health and safety, all of those things will still be there.”

As a result, Mr. Penrice said he believes there will still be a heavy service component role for distributors to play in the industry – a role which will probably be difficult to digitalise.

“If you think about finance getting digitalised and what is going on with WeChat and Alipay, if you take that into a B2B environment, you’ll be able to take away the role of the financial risk mitigator that the distributor has and connectivity that they provide – so what’s left is the service model,” he concluded, adding that, “My guess is, it will happen in China first.”

For details about other upcoming Executive Forums and other CEIBS events, please visit our events page here.

October 19, 2019. Accra – The Women Entrepreneurship & Leadership for Africa Programme (WELA) 2018 cohort joined their Advanced Management Programme (AMP) and Owner Director Programme (ODP) 2019 counterparts in a colourful graduation ceremony at CEIBS Accra campus.

Some fifty-seven executives from Ghana, Nigeria and Ivory Coast graduated to join the school’s 22,000-plus alumni worldwide. The ceremony was attended by distinguished guests including CEIBS Associate Dean and GEMBA Programme Director Nikos Tsikriktsis, Associate Professor of International Business and Strategy Shameen Prashantham, as well as executive council members of CEIBS Alumni Ghana and Nigeria chapters.

Professor Mathew Tsamenyi, Executive Director of CEIBS Africa, expressed his delight at the school’s progress in its quarter-century anniversary year.

“In our 25^th anniversary year we are very excited by the many achievements of the school,” he said, adding, “2019 is also a very important year because for the first time on our WELA programme we have reached an agreement with Alibaba in Hangzhou, China, where the women will now get to spend three fantastic days.”

Prof Tsamenyi also renewed the school’s commitment to contributing to the UN Sustainable Development Goals by announcing the launch of a Climate Change and Sustainability Centre in partnership with Ernst & Young, and the Dangote Group.

In his keynote address, Chinese Ambassador to Ghana, His Excellency Shi Ting Wang, shed light on China’s achievements and successes over the past 70 years. He explained that China’s developments had not only greatly improved the lives of Chinese people but also benefitted African countries.

Ambassador Wang also lauded CEIBS for its tremendous work in Africa. “Since its inception, CEIBS has made remarkable achievements in teaching and research by virtue of its world-class faculty and staff, and its quality and mode of running the school, which have been widely applauded worldwide,” he said, adding, “CEIBS has made positive contributions to the cultivation of outstanding entrepreneurs on the African continent and I expect it to make more such contributions.”

The Ambassador and Head of the European Union Delegation to Ghana, Her Excellency Ms. Diana Acconcia also highlighted CEIBS as an excellent example of co-operation between the EU and China.

“The EU and China established diplomatic relations as far back as 1975 and have since developed a deep relationship around shared interests on promoting peace, sustainable development, and people-to-people relationships,” she said.

Ms. Acconcia added that she was very happy the majority of the graduates at the ceremony were women. “I know it’s always a little bit difficult for women everywhere, but I say to you that this should be just a little step to achieve a more equal presence in business life and I want to specifically congratulate you all,” she said.

Representatives of the graduating cohorts also took turns to address the gathering and called for co-operation among the executives as they embrace their work on renewed energy.

October 7, 2019. Zurich – CEIBS has this month officially doubled the size of its campus in Switzerland, solidifying its status as a unique centre of east-west business learning in Europe.

At an inauguration ceremony on October 7, attended by CEIBS leaders, and Swiss officials, a brand new building was opened at our European campus situated on the picturesque shores of Lake Zurich.

Eric Cornuel, President, EFMD was also present, and the Consulate General of the People's Republic of China in Zurich was represented at the event.

CEIBS President (European) Professor Dipak Jain gave an opening speech in which he highlighted the progress made by the school. “Doubling the size of our campus in Switzerland, in our 25^th anniversary year, illustrates the school’s upward trajectory and further strengthens our ability to bring China and Europe closer through business learning," said Prof. Jian, adding, "This expansion marks another significant milestone in the global initiatives of CEIBS, boosting our cross-cultural leadership and collaboration capabilities, including facilitating greater European and Asian entrepreneurship."

The new campus expansion would support the school’s mission to provide ‘China Depth, Global Breadth’ and to build bridges between Europe and China to enable effective two-way communication, explained CEIBS Vice-President and Dean Yuan Ding.

“Switzerland is a role model and ideally situated in the heart of Europe, and CEIBS brings European and western management know-how, values and practices to China,” said Prof. Ding,  “In return, CEIBS offers European and western executives the chance to gain in-depth insight on how to successfully do business in China,” he added.

Celebrating its 25^th anniversary in 2019, CEIBS is Asia’s number 1 business school and both its MBA and EMBA programmes are ranked top 5 globally by the Financial Times.

CEIBS Zurich CEO Dr. Robert Straw explained that the expansion of the Zurich campus signifies the importance of the European market and the strength of the European marketplace, management culture, and research facilities.

“Often western businesses fail to be successful in China due to a lack of understanding of the Chinese market and regulations or by applying western business models without having the ability to make the necessary adjustments with regards to local differences," said Dr. Straw, adding, “The same goes for many Chinese companies when trying to adapt to the European market.”

Dr. Straw pointed out that western companies face drastically more competition in China from local firms when compared with Europe. “Thus, it is important to obtain invaluable knowledge, not just in theory, but also through an immersive programme that has practical value," he said.

CEIBS has a commitment for its campuses to be carbon neutral, and its state of the art new building was predominantly built by local vendors, in line with sustainability guidelines. It features a photovoltaic system which powers the building using solar energy, an environmentally friendly mineral facade insulation as well as a cooling system that uses water from Lake Zurich. In addition, the campus will be a plastic bottle-free zone.

The establishment of the Zurich campus and its expansion were made possible due to generous support from two CEIBS alumni who attended the inauguration ceremony as guests of honour.

Jiangsu Jinsheng Industry Chairman and CEO Xueping Pan gave generous financial support in establishing the campus in 2015, and Man Wah Holdings Chairman Manli Wong helped finance the expansion project. The new facility is named the ‘Man Wah Building’ in his honour.

GCL System Integration Technology were also recognised for their generosity in providing the solar energy system for the new campus.

The CEIBS Zurich campus is a gateway for European companies to tap into the school’s research insights and its 22,000-strong alumni network of MBA, FMBA, Executive MBA (Chinese EMBA, GEMBA, HEMBA), and Advanced Management Programme (AMP) graduates.

Under the theme of an eight-month-long celebration of “China Essence, Global Significance”, the event on Lake Zurich was just one of many activities marking the CEIBS 25^th Anniversary Celebration, which will culminate in a grand ceremony at the school’s flagship Shanghai campus in November.

October 4, 2019. Paris – The CEIBS Insights 5^th Europe Forum 2019 China-France Investment Dialogue, co-organised by CEIBS, the Committee of Exchanges Between France and China (CEFC) of CCI Paris Ile-de-France, and the Chinese Chamber of Commerce and Industry in France (CCICF), was held today at the Hôtel Potocki in Paris on the theme of Consumption Upgrade: A New Opportunity for China-France Economic Co-operation.

More than 300 representatives from both business and politics gathered for the event to explore new business opportunities in Franco-Chinese trade created by China’s strong growth in demand for consumer goods, as well as new avenues and guidelines for tapping into trade co-operation between the two countries in the current era of consumption. Recently appointed Chinese Ambassador to France Lu Shaye also attended the forum, where he exchanged ideas with members of the French business community.

This year marks the 70^th anniversary of the founding of the People’s Republic of China and the 55^th anniversary of the establishment of formal diplomatic relations between France and China. Paris has served as an important venue for numerous past CEIBS Insights Europe Forums and the events have made important contributions to promoting Franco-Chinese business co-operation and cultural exchanges. Adding to the significance of the China-France Investment Dialogue, this year’s event also coincides with CEIBS’ 25^th anniversary celebration.

President of CCI Paris Île-de-France Didier Kling, Director-General of the Bank of China in France and President of the Chinese Chamber of Commerce and Industry in France Nhay Phan, and CEIBS President (European) Dipak Jain delivered welcome speeches at the event.

In his speech, Mr. Kling noted that in recent years Franco-Chinese relations have become increasingly close, and that entrepreneurs of the two countries have a strong willingness to communicate with each other. The event has a great importance, he added, as the economic and cultural exchanges at the forum would help enhance mutual understanding and trust, and aid in the mutual exploration of the path to co-operation.

Mr. Phan pointed out during his welcome address that the Chinese middle class is expanding and is expected to include 420 million people in the future. At the same time, he said, developments in areas such as mobile payment, e-commerce and fintech have brought about tremendous changes in China's consumer market. These changes, he added, will provide a broader space for co-operation between the French and Chinese business communities.

Professor Jain began his speech by stating that the goal of CEIBS is to move from success to excellence. In the future, he said, the school will continue to increase its visibility in the US, strengthen its operations in Europe and Africa, and shape and consolidate a harmonious cultural atmosphere, while enhancing its global reputation.

Chinese Ambassador to France Shaye Lu then delivered the opening keynote speech, in which he noted that CEIBS has been very active in promoting co-operation between France and China over the years. This year marks the 55^th anniversary of the establishment of diplomatic relations between France and China, he said, and the comprehensive strategic partnership between the two countries has entered a new era. Citing a strong willingness to co-operate, Ambassador Lu stated that he believes that a bright future for Franco-Chinese co-operation is assured. However, he added, to truly transform willingness into tangible results depends on the joint efforts of both sides. As such, he urged that France and China must work together to enhance the “golden content” of co-operation, foster new growth points for co-operation, and safeguard the positive image of Franco-Chinese co-operation.

In his keynote address, CEIBS Associate Dean (Research) and Professor of Economics and Finance Xu Bin analysed new changes and trends in China's macro-economy, as well as new opportunities brought about by these changes and trends. Included in these trends, he observed that China's per capita income is rising, and the service industry has become the country’s main driver of economic growth. At the same time, he said, China's R&D investment is on the rise, and its total R&D investment is now ranked second in the world. In addition, he pointed out that China's relatively weak financial and medical health fields represent a broad opportunity for foreign investment. When foreign investors invest in China, Prof. Xu advised, they need to take a long-term perspective and strengthen mutual trust with local enterprises in order to achieve more positive results.

Luxurynsight CEO Mr. Jonathan Siboni’s talk then analysed how companies develop in the international consumer market. During his presentation, Mr. Siboni stated that before entering a new market, overseas companies need to first understand the target market and consumers, and identify consumers’ concerns about their products. Even if companies do not plan to enter overseas markets, he said, it is still important to understand their own international consumers. Currently, he pointed out, there are about 150 million people traveling abroad each year in China, and understanding the consumer preferences and shopping habits of these groups of consumers is of great benefit to local companies.

The event also included a series of panel discussions, where French and Chinese business leaders and entrepreneurs shared their insights on the new path of Franco-Chinese economic and trade co-operation.

In the first panel, ICICLE Shanghai Fashion Group International Vice President and Executive Director Paris Isabelle Capron and LANVIN CEO Jean-Philippe HECQUET discussed new trends in the Chinese market and new opportunities for French and Chinese companies. First-and-foremost, the pair agreed that the Chinese consumer market is undergoing tremendous changes. On one hand, they noted, technological innovation has brought about a boom in mobile payments and e-commerce; while, on the other hand, local brands have grown quickly, especially in the fashion sector, and more Chinese brands will likely emerge in the future. As a result, they said, French and Chinese companies will have more opportunities to co-operate to achieve even greater breakthroughs.

The second panel, featuring Regional Agricultural Advisor for the Embassy of France in China Mr. François Blanc; President and CEO of Semmaris, Rungis Marché International Mr. Stéphane Layani; International Director of Saint Michel Biscuits Mr. Laurent Noppe; and CEO of Chic Group and CEIBS EMBA 2006 alumus Yanming Zhu, then explored the strategic path of foreign companies entering the Chinese market. The four panellists acknowledged that China's consumer market is changing with each passing day, and that Chinese local enterprises are rising rapidly. For foreign companies interested in entering the Chinese market, the group argued, they must learn quickly to understand the Chinese market and find reliable local partners. The most important thing, the panel concluded, is to have patience and grow in step with the Chinese market.

In the final panel, Director of European Partnerships of ALIPAY Jean-Cyrille GIRARDIN; Chief Brand & Communications Officer of Kenzo Mode (LVMH Group) Julie GOSALVEZ; La Samaritaine Project Director of DFS France SAS (LVMH Group) Mikael Guery; and Europe Director of Xiaomi France Yan Liu, shared their views on technological innovation in the area of new retail. Whether online or offline, they said, businesses must provide good service to customers and ensure the consistency of service quality. In the new retail era, the group added, online and offline has begun to converge and the most important thing is to provide good consumer experience.

Former Prime Minister of France and CEIBS Distinguished Professor Dominique de Villepin then delivered the closing speech of the event, in which he stated that today's global situation has undergone many changes and the world economy has entered a new era. In the era of the “new economy”, he stated, people now demand common ground while reserving differences, seek common development, actively explore potential co-operation opportunities, and work to promote economic prosperity and the fair distribution of wealth. This, he concluded, is an important goal of global economic co-operation and one of the key motivations behind the China-France Investment Dialogue.

An award ceremony for the 2019 Franco-Chinese Trophies for CSR was held following the event. The China-France Investment Dialogue marks the finale of the CEIBS Insights 5^th Europe Forum 2019 series. For details about these and other CEIBS 25^th Anniversary Celebration events, please visit our special CEIBS 25 page here.