Bingz, a Chinese snack brand specializing in crispy burgers with about 140 outlets in China (and more to come), has been expanding its presence to Canada since 2021, with four restaurants up and running there as of this year. Its flagship product is the adapted roujiamo, a popular Chinese snack originating from Shaanxi Province in northwest China. Resembling a hamburger, the roujiamo features shredded meat and mild peppers stuffed into flat buns.

Canadian Chris Pereira played a pivotal role in the brand's overseas success. Pereira, with a decade of experience working in China, in 2020 founded iMpact, a global communications and business consulting group headquartered in New York City. Operating across the U.S., China and Canada, the company employs half Chinese and half international staff.

"Our business is to empower Chinese companies to successfully expand into global markets, especially North America, through consulting, public relations, marketing and support services," Pereira told Beijing Review.

In China, for China

Pereira first came to China in 2004. Contrary to his initial expectation of seeing people cultivating land everywhere, he was greeted by ubiquitous urban infrastructure programs.

After meeting several international students during his travels, he developed a keen interest in the country and decided to enroll as an undergraduate student at Zhengzhou University in Henan Province to learn standard Chinese.

"I felt a strong attraction to and connection with China's energy and pace of change. I knew this was where I wanted to live and work," he said.

Over the years, he has seen great changes in the city where he once studied. "When I first got to Zhengzhou, it was a city of bicycles and old buses with no air conditioning. Now, it has autonomous taxis, electric buses, a start-up scene and exciting new developments happening in every corner," he said.

Witnessing these advancements fueled Pereira's passion for the country, driving his desire to be part of China's dynamic growth story.

In 2016, Pereira embarked on a new chapter by joining the ranks of Chinese tech titan Huawei. "My experience at Huawei had a big impact on me. The company's spirit of innovation and work culture served as a model," he said.

His time at Huawei eventually inspired Pereira to channel his entrepreneurial spirit toward new undertakings.

He went on to set up his own business at a time when many Chinese companies were rapidly expanding onto the world stage with near-exponential growth rates. iMpact's China office is based in Shenzhen, Guangdong Province, renowned as a hub of opening up and innovation in south China.

For Pereira, Shenzhen stands out as an entrepreneurial city exceeding all expectations in scale and efficiency. "The processes of registration and administration have been straightforward here in China. iMpact operates at 'Shenzhen Speed,' delivering results for our clients with precision, and has also seen itself grow at 'Shenzhen Speed'," he said.

"Shenzhen Speed" refers to the city's rapid pace of development, innovation and growth. It expresses the agility with which businesses operate in the tech hub, often resulting in swift advancements, quick decision-making and rapid scaling.

In Pereira's view, Shenzhen has evolved into China's premier hi-tech metropolis, boasting a concentration of professional talents, strong supply chains and state-of-the-art infrastructure. Its entrepreneurial buzz has birthed some of the world's biggest companies alongside a host of smaller companies, jointly producing almost any product and service imaginable. Companies originating from this hi-tech high-flyer are reshaping many global industries.

Within just four months of its inception, iMpact secured its first client. Overcoming initial hurdles, the company has seen express growth. In 2023, its business expanded by 300 percent year on year.

iMpact offers services to assist companies, big and small, in establishing their presence and ensuring compliance within local markets. For example, it has helped small businesses to sell their products on leading U.S. e-commerce platform Amazon, while also providing support to Chinese solar product manufacturer LONGi Green Energy Technology Co. Ltd. in refining its messaging and media strategies for events such as the UN Climate Change Conference in Dubai last November.

Going global, going local

Among its clientele are topnotch Chinese companies such as consumer electronics brand TCL Corp. and Segway-Ninebot, a leader in intelligent short-distance transportation and service robots.

Pereira highlighted TCL's localized operations in the U.S., which involve the introduction of sustainable products, enlisting football players as brand representatives, and forging partnerships with Hollywood entities.

Additionally, iMpact is facilitating the entry of Chinese food and beverage brands into the North American market, which brings us back to Bingz. According to Pereira, Bingz has localized its offerings not only by adapting the menu to local palates, but also by partnering with local charities to donate food, improving brand reputation. The Bingz approach underscores the importance of cultural sensitivity on the part of Chinese brands when undertaking localization efforts.

Another iMpact customer, Nan Hotpot, a hotpot restaurant chain based in Chengdu, Sichuan Province, has gained a growing presence in the overseas market.

Hotpot is a popular Chinese dish featuring a pot of simmering broth placed in the center of the table. Diners then cook an array of raw ingredients in the broth. Sichuan hotpot is notorious for its spicy broth.

With over 500 stores worldwide, Nan Hotpot specializes in this classic spicy flavor synonymous with local hotpot cuisine.

In March 2023, Nan Hotpot opened its first store in the North American market in Seattle, the U.S. According to the brand, total turnover of the Seattle-based restaurant in the first month after opening to the public totaled $367,000; its monthly turnover in China is around 3 million yuan ($413,600). Its patrons are 60 percent Chinese and 40 percent international.

Pereira emphasized how the quality of products and services offered by Chinese companies has improved dramatically in recent years. Chinese products used to be perceived as mere "cheap knock-offs," but now these companies are creating innovative new products of noticeably higher quality at more affordable prices, which is why they are beginning to dominate many industries.

"Chinese companies also have a much-improved understanding of local markets and consumer preferences. Instead of just selling the same product in China and abroad, they are designing products tailored to each local market," he continued.

Pereira explained that Chinese companies are succeeding for many reasons that have nothing to do with industrial policies. "I see the success of Chinese companies coming more from a competitive work environment, high degrees of innovation, a strong desire to get ahead, and a strong focus on research and development," he elaborated.

Going global can present tremendous opportunities for companies, but the list of challenges is long due to varying business environments. Hiring and managing local employees, navigating cross-cultural teams and addressing today's geopolitical challenges are common obstacles. Being successful in a new market requires considerable time and effort in establishing partnerships, he added.

Pereira named short video app TikTok, owned by Beijing-based tech company ByteDance, as a prime example of successful localization among Chinese companies. With nearly half of all Americans using TikTok today, its success goes beyond technological prowess.

TikTok has adeptly localized its branding, employed local staff and tailored its content to resonate with audiences in every major market it operates in.

According to Pereira, the North American market holds great potential for many Chinese companies.

"But to succeed in this market, companies need to localize their brands and products, maintain a strong ecosystem of friends and partners, and ensure communication between overseas branches and China-based headquarters," he said. BR

(Print Edition Title: Cracking the Code)

Copyedited by Elsbeth van Paridon

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