On December 18-19, 2024, the "2024 GoGlobal Forum of 100 • Shanghai" (GGF2024 Shanghai), hosted by EqualOcean, a leading think tank for globalization, successfully concluded in Xuhui District, Shanghai. The two-day event featured four full-day forums: the Leadership Forum, the Brand Globalization Forum, the Overseas Insights Forum, and the Emerging Industries Globalization Forum. With 107 speakers, 100 award-winning institutions, and over 3,000 attendees, the forum aimed to advance globalization, drive "true" global expansion, and create a new chapter for Chinese companies going global in 2025.
On December 19, during the Overseas Insights Forum, a roundtable discussion titled "The Middle East – The Next Southeast Asia for Chinese Companies Going Global?" was held. The panel featured Jiang Jiang, Middle East Market Leader of Belle Group; Lin Wei, Overseas Strategy and Investment Director of Midea Home Air Conditioner Division; Sun Degang, Director of the Middle East Research Center at Fudan University; and Shi Songrui, Founder of Saiya Blueprint. The discussion was moderated by He Zhijun, Founder of Middle East Bridge. Below are the highlights from the panelists' remarks.
Jiang Jiang: "What to do and how to do it are the key decisions."
Jiang Jiang, Middle East Market Leader of Belle Group, brings extensive international market operation experience to the table.
Ms. Jiang believes that the key to achieving success in the Middle East market lies in precise business decision-making and efficient resource integration. On one hand, her team consistently focuses on identifying the right business opportunities, strategically planning business layouts based on market dynamics and their own strengths, and defining core business directions. For example, they continuously prioritize product quality improvement, closely aligning product iterations with consumer needs to ensure a steady output of high-quality products and services. On the other hand, they embrace an open and collaborative mindset, actively seeking partnerships and channels, and leveraging external resources to optimize the allocation of their own and their partners' resources. When collaborating with local partners, they fully respect local business practices and cultural differences, deeply understanding the core needs of different stakeholders. For instance, when working with retail outlets of real estate groups and footwear and apparel business owners, they precisely address varying needs in channel coverage and profit distribution to ensure smooth and efficient cooperation.
Regarding the demands of Middle Eastern female consumers, Ms. Jiang points out that they exhibit distinct segmentation characteristics. High-purchasing-power women with Westernized aesthetics have a strong preference for products featuring European and American trends, showcasing robust consumption power and a pursuit of fashion. In contrast, mass-market users lean more toward casual categories to meet their daily comfort needs. South Asian consumers prioritize cost-effectiveness and versatility, seeking products that align with their personal aesthetics while being affordable. Additionally, seasonal variations across different countries create time-based differences in product demand. For example, temperature differences between Kuwait, Saudi Arabia, Dubai, and Abu Dhabi influence the demand rhythm for seasonal products.
Ms. Jiang advises that companies intending to enter the Middle East market must conduct thorough market research in advance, accurately grasp the characteristics of various consumer demands, and strategically plan product layouts. At the same time, maintaining a calm and stable mindset when working with Arab partners is crucial to avoid unnecessary misunderstandings due to cultural differences, ensuring long-term and stable development in the Middle East market.
Lin Wei: Localization is the Core of Succeeding in the Middle East Market
Lin Wei, a Tsinghua University Ph.D. in Management, currently serves as the Overseas Strategy and Investment Director of Midea Home Air Conditioner Division. He is primarily responsible for overseas business diagnostics, strategic planning, and the execution of joint venture and M&A projects. Lin has led the entire process of establishing a joint venture and local manufacturing project in Saudi Arabia, including market feasibility studies, supply chain research, financial modeling, site selection, government communication, partner due diligence, and contract negotiations. Before joining Midea, Lin worked as the head of industrial policy research at a think tank, serving central government ministries and leading technology companies such as CATL and ZTE. He also served as a researcher at Shenzhen Capital Group, a top state-owned fund, accumulating extensive experience in international strategy, industrial policy, and industries such as smart hardware and new energy.
Lin Wei analyzed that the Saudi market presents both opportunities and challenges. On the opportunity side, Saudi Arabia's Vision 2030 continues to drive infrastructure projects, such as World Cup stadium construction and metro system launches. These landmark projects not only boost market confidence but also create growth opportunities for related industries. As a post-real estate and infrastructure sector, air conditioning is expected to benefit from this market growth. However, challenges are equally significant. Saudi Arabia's supply chain foundation is weak, and the manufacturing sector faces numerous difficulties, including high transportation costs for raw materials and elevated local procurement prices, which significantly increase production costs. Additionally, in terms of consumer behavior, Saudi consumers are heavily influenced by European, American, and Japanese brands, and awareness of locally manufactured products remains low. Consumers, especially those outside government-led initiatives, prioritize cost-effectiveness. Furthermore, in business collaborations, decision-making by Saudi family businesses and investment institutions is influenced by various factors, including emotional considerations and differing perspectives among professional managers, adding complexity to commercial partnerships.
In terms of market layout in the Middle East, Lin provided an in-depth analysis of different countries. In the air conditioning export sector, the UAE, Saudi Arabia, and Iraq are among the top ten destinations for Chinese exports, with Iraq showing particularly impressive growth and stable security conditions. However, the Saudi market exhibits unique characteristics in areas such as small home appliances, with lower levels of smart technology adoption, strict certification requirements for certain products, and traditional channel models dominated by decentralized, family-run stores, which differ significantly from the Chinese market.
Based on these observations, Lin emphasized that localization is the key for Chinese companies entering the Middle East. Companies must overcome their own limitations, avoid rigidly applying domestic practices to the Middle East market, and actively address practical challenges such as language barriers. They need to deeply understand local market demands and cultural characteristics, guided by Vision 2030, and strengthen integration with the local market. Lin particularly stressed that corporate managers should personally visit the region to gain firsthand insights into market dynamics, build close relationships with local partners, and jointly promote sustainable development in the Middle East market.
Sun Degang: Stability is Key to Navigating Changes in the Middle East Market
Sun Degang, Assistant Dean of the Institute of International Studies at Fudan University, Director of the Middle East Research Center, researcher, and doctoral supervisor, is a leading expert on Middle Eastern politics and international relations. He also serves as Vice President of the Chinese Middle East Society, Executive Director of the Chinese Asian-African Society, and Deputy Secretary-General of the Shanghai International Relations Society. Sun is an editorial board member of academic journals such as International Review, West Asia and Africa, Arab World Studies, and Middle East Studies. He has been recognized as a "New Century Excellent Talent" by the Ministry of Education, a "Shanghai Pujiang Talent," a "Shanghai Dawn Talent," a "Shanghai Social Science New Talent," a Young Yangtze River Scholar, and a "Fudan Outstanding Talent." His research focuses on Middle Eastern politics, international relations, major powers' Middle East strategies, and China's Middle East diplomacy.
Based on his in-depth research on the Middle East, Sun categorizes Middle Eastern countries into three distinct types of "worlds":
The First World includes the six Gulf Cooperation Council (GCC) countries, such as Saudi Arabia and the UAE. These countries are rich in energy resources and are actively promoting energy transition and technological innovation. With substantial sovereign wealth funds, they have attracted numerous Chinese companies to collaborate in infrastructure construction, energy cooperation, and other fields.
The Second World consists of North African countries, such as Egypt and Algeria. These nations are in a critical phase of transitioning from traditional industries to industrialization. With high birth rates and a certain scale of infrastructure development, they offer abundant business opportunities in energy, electricity, employment, and other sectors.
The Third World comprises countries significantly affected by the Israeli-Palestinian conflict, such as Palestine and Israel. This region experiences frequent conflicts and unstable conditions, resulting in high investment risks. Although some companies have explored reconstruction opportunities in countries like Syria, practical challenges make it difficult to ensure returns on investment.
For Chinese companies entering the Middle East, Sun offers several key recommendations:
At the policy level, Middle Eastern countries are highly competitive internally, with frequent policy changes. For example, Saudi Arabia requires multinational companies to relocate their regional headquarters to Riyadh or face investment restrictions. Companies must closely monitor policy developments to avoid losses caused by sudden changes.
At the cultural level, respecting local cultural customs is crucial for success. Islam holds a significant position in the Middle East, and companies must avoid inappropriate behaviors related to Islam, respect local women, and observe gender interaction etiquette. Additionally, companies should respect Muslim dietary restrictions, such as avoiding pork in public settings.
Sun believes that the importance of Middle Eastern countries will continue to grow, and China's westward opening strategy provides a rare opportunity for companies to expand into the region. However, the escalation, spillover, and spread of the latest Israeli-Palestinian conflict pose severe challenges to certain industries and companies. Companies should clearly identify their potential customer base, accurately positioning market demands, and enhance their risk management capabilities to achieve steady development.
Sun summarizes the future trend of globalization with the word "stability," emphasizing that companies must remain calm, rational, and steady in their overseas expansion efforts.
Shi Songrui: "Initial Delight is Less Valuable than Long-term Satisfaction"
Shi Songrui, Partner at Saiya Blueprint Group and Executive Partner at Wuhan Shiyang Qingke Fund, has been instrumental in shaping the company's global strategy. Saiya Blueprint, founded in 2019, is a top MCN (Multi-Channel Network) agency in the Middle East and one of the first domestic MCN agencies to collaborate with TikTok. The company currently boasts over 20,000 overseas influencers. With a strategy that starts in the Middle East and radiates globally, Saiya Blueprint is committed to empowering Chinese companies going global through overseas traffic, aiming to create a win-win situation for both overseas influencers and globalizing enterprises.
Shi mentioned that during their initial exploration of the Middle East market, they encountered numerous setbacks. For example, while their first e-commerce livestream attracted a significant audience, the GMV (Gross Merchandise Value) was disappointing. This experience made them realize that the development of the Middle East e-commerce market is constrained by factors such as complex logistics. Companies must avoid impulsive decisions and instead adopt clear rhythms and strategies when expanding overseas.
Based on these experiences, Shi emphasized the importance of building strong connections with locals. Chinese companies need to deeply understand local culture and market demands, ensuring their products and services align with local value systems. In business collaborations, companies should leverage local influencer resources, test products through influencers' private domains, and be willing to share profits with influencers to establish long-term, stable partnerships. Additionally, founders must personally visit the region, immerse themselves in the local market, and experience the culture and business environment firsthand to avoid making decisions based solely on theoretical assumptions.
The Middle East's social media environment is unique. Shi pointed out that local influencers often face challenges in content creation and monetization, with limited creative thinking. To address this, Saiya Blueprint organizes top influencers to visit China, leveraging China's advanced production technology and robust supply chain advantages. By collaborating with high-quality brands, they provide influencers with more content creation materials and monetization opportunities.
Furthermore, Shi shared insights into the characteristics of platform development in the Middle East. For instance, TikTok's livestreaming in Saudi Arabia was once restricted by telecom operators, while the JAKO platform gained prominence due to its connections with the royal family. This highlights the importance of resources and relationships when operating platform businesses in the Middle East.
Shi believes that companies going global should maintain a positive yet steady attitude, avoiding the temptation of short-term gains. Guided by the philosophy of "initial delight is less valuable than long-term satisfaction," companies should deeply understand local culture, build strong friendships with locals, and maintain strategic resilience in a constantly changing market environment. Continuous learning and adaptation are essential to navigate unknown risks and achieve long-term sustainable development.
About the GoGlobal Forum of 100 (GGF)
The GoGlobal Forum of 100 (GGF), hosted by EqualOcean and the GoGlobal Committee of 100, is held annually in June in Shenzhen and in December in Shanghai. Each conference lasts 2-3 days, with over 2,500 attendees, 70% of whom are director-level or above. It is the largest and most prestigious gathering in the field of globalization, attracting significant industry attention. For collaboration opportunities, please contact EqualOcean's team.
About EqualOcean
EqualOcean is a new think tank and core resource connector focused on serving Chinese companies going global and helping overseas companies or institutions seize China's development opportunities. With the mission of "connecting China and the world," our core strength lies in having the strongest team in the industry, bridging official and private sectors, integrating technology and traditional industries, and possessing a global perspective and resource network. Founded in November 2018, EqualOcean currently offers products such as the New Globalization Research Institute, New Globalization Academy, GoGlobal Committee of 100, media events, and the Huang Yuanpu Channel. We provide in-depth Chinese and English reporting and analysis, globalization strategy consulting, overseas market research, Benchmark Study Camp, overseas study tours, globalization conferences, and closed-door meetings. In 2024, the EqualOcean team also published the book The New Wave of Globalization, which sold 100,000 copies.
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