Succession questions raised as family firms face hurdles

The son also rises

Over the past six years, Tang has observed how his parents divide the company duties. His mother manages internal affairs, production, and operations, while his father focuses on technology, procurements, and sales. His father originally trained in grain management and carved out his own fortune in the electronics industry.

However, Tang acknowledges he encountered the issue of smooth succession of the business. "My parents have strong personalities, and initially, any requests or ideas would be shot down and rejected," he said.

When Tang took charge of marketing this year and established information departments, the conflict became more obvious, he said. "As I pushed for focusing on informatization and implementing new systems, my father's insistence on prioritizing product development led to numerous arguments, highlighting the generational divide in our approaches to modernizing the family business," he said.

"However, as the company faced challenges meeting the orders of large manufacturers, they gradually recognized the need to modernize."

Nearly 65 percent of Chinese family businesses plan to pass ownership to the next generation, according to the 2021 PwC Global Family Business Survey. About 55 percent of these businesses already have a digital transformation strategy in place, while approximately 70 percent say they will prioritize sustainable development goals, the survey revealed.

With the company already achieving 840 million yuan ($117 million) in annual sales, Tang is cautious about setting lofty goals. "I'm thinking about adding some innovation to our business model, like incorporating self-media and e-commerce to make our products recognizable to end consumers by addressing the demands of customers and influencing their consumption habits," he said.