Foreign executives still upbeat on China's consumption growth

Foreign executives in China have voiced optimism over China's economic resilience despite the ongoing novel coronavirus epidemic.

French cosmetics giant L'Oreal unveiled its annual China strategy on March 5, citing new consumers in several cities and data-backed, personalized beauty services as two of the central planks girding its future course in the country.

"I know today the sea is not calm and the start of the year is impacted by this epidemic. But L'Oreal China is not a single slow-moving cruiser," said Fabrice Megarbane, president and CEO of L'Oreal China. "L'Oreal China is the flotilla of small boats with a huge engine ... and together we can bring it to further success."

Recognizing the nation's huge consumption potential, he said the company holds a vision in which L'Oreal China will play a big role in terms of a future platform for the beauty sector worldwide, and for China "to be the lighthouse of good consumption".

The epidemic has fueled online shopping, especially fresh produce, into a "new normal", which spells huge opportunities for healthy, ready-to-eat dining options, said Sheng Wenhao, chief executive officer of Theland New Cloud.

"We've seen our dairy products skyrocket on e-commerce sites like Hema Fresh, and that in turn boosts our door-to-door delivery services," Sheng said, adding that the company's premium milk has just been dispatched to Leishenshan Hospital in Wuhan, capital of Central China's Hubei province, the epicenter of the outbreak.

With an extensive presence on major platforms like Tmall, JD and Suning, the company, which sources directly from New Zealand, will also step up crafting more customized dairy offerings for Chinese consumers this year, he added.

Also resorting to online channels is French lens maker Essilor. In the eyes of its China president Arnaud Ribadeau Dumas, online business remains robust and a resumption of full operations in the coming month is expected.

"Of course, with the current situation, it requires the company to be more agile and adaptable," he said. "For example, we think it is actually a good opportunity to accelerate digital and online platforms and enhance internal competence such as learning and training."

While all industries are suffering at the moment, Denis Depoux, managing director of consultancy Roland Berger in China, foresees some players might stand to gain.

"As working from home is encouraged to limit risks, digital workplace software and hardware companies are seeing a demand surge that may last beyond the crisis, once new habits are formed," Depoux said.

He also pointed to the entire risk management industry, from insurance to auditing, as well as medical equipment makers and their supply chains, as possibly enjoying increased demand beyond the crisis in China and across the world.