To survive China’s cost-conscious market, global brands embrace AI and robots
From L’Oréal to Coca-Cola, major multinationals are embedding cutting-edge technologies into operations to compete with local rivals
Multinational companies have expanded their use of AI and robotics in China to survive “life or die” competition in the world’s second-largest consumer goods market, where local rivals have sharpened their edge and shoppers often switch between brands for better value, analysts said.
The French multinational opened the second phase of its UPX smart manufacturing workshop in the city last month. The highly automated facility integrates AI-powered quality inspection into its core production lines, nine of which are now fully automated.
“China’s AI and robotics ecosystem is moving very quickly, and we want to grow and invest at the pace of local technology innovators,” said Marc-Antoine Poulle, senior vice-president of operations for North Asia and China at L’Oréal, during a ceremony marking the 30th anniversary of the company’s Suzhou plant on June 11.
Swire Group has also integrated AI into customer service, logistics and aviation operations. At Beijing Taikoo Place, the company introduced TK Mates, an AI shopping assistant. Deployed through its digital membership platform, the tool offers personalised fashion recommendations, product searches and tailored customer service, helping to keep shoppers engaged beyond their visits to the mall.