Core Insights - Global brands are reassessing the deep value of localization in light of China's manufacturing rise and consumer awareness upgrade [1] - The transition from "producing in China" to "innovating for the world" is a key focus for companies [1] Industry Overview - The modern industrial base in Wuxi, covering over 64,000 square meters, symbolizes the shift in global narratives [1] - The German brand Vaillant operates this facility, with an annual production capacity of 1.5 million units, while the wall-mounted boiler sales in China are projected to reach 2 million units in 2024 [3] - Approximately 40% of the factory's electricity comes from photovoltaic power, and it has achieved international LEED Gold certification, reflecting the growing importance of heating solutions among Chinese consumers [3] Consumer Behavior Changes - Consumer perception has evolved from "brand worship" to "quality recognition," with China's manufacturing value expected to account for nearly 30% of the global total by 2025 [4] - The overall scale of China's manufacturing has maintained the top position globally for 15 consecutive years [4] - The shift in consumer mindset indicates a more rational judgment, where consumers are clearer about their product needs and lifestyle preferences [4] Market Demand Diversification - The demand in the Chinese market has become increasingly diverse, reflecting the changing consumer mindset [6] Product Development Insights - Specific product requirements, such as higher adjustment ratios for wall-mounted boilers to accommodate varying water temperatures, are critical for usability [9] - Noise control is emphasized, with dedicated soundproofing labs focusing on psychological acoustics to ensure products operate quietly [10] - Smart features, such as remote operation and temperature settings via an app, are driven by Chinese customer demands, influencing global product upgrades [10] Global Innovation Impact - Innovations developed for the Chinese market are now influencing global products, with Vaillant exporting approximately 300,000 water heaters annually to over ten European countries [12] - The collaboration with Southeast University since 2019 has led to algorithm optimizations that cater to both local and international markets [12] Challenges for Multinational Companies - Multinational companies face the challenge of adapting to local market needs rather than merely replicating existing production systems [14] - China's market is evolving from being a traditional manufacturing hub to becoming a center for global innovation [14] Global Consumer Consensus - Successful products can achieve global recognition, as evidenced by the popularity of brands like Labubu among young consumers worldwide [16] - The operational strategies of foreign brands in China are shifting towards deep adaptation to local needs while maintaining core standards, leading to local innovations influencing global standards [16]

Core Viewpoint - Global brands are reassessing the deep value of localization in the context of China's manufacturing rise and consumer awareness upgrade, seeking a balance between global standards and localized demands while transitioning from "producing in China" to "innovating for the world" [1][3]. Group 1: Consumer Awareness Upgrade - The shift in consumer perception in China has evolved from "brand worship" to "quality recognition," reflecting a more rational judgment about products and lifestyles [4][5]. - By 2025, China's manufacturing value-added share is expected to approach 30% globally, maintaining its position as the largest manufacturing economy for 15 consecutive years [5]. Group 2: Market Demand Diversification - The demand in the Chinese market has become increasingly diverse, necessitating tailored product features to meet specific consumer needs [7]. Group 3: Product Adaptation and Innovation - The wall-hung boiler products require higher adjustment ratios to maintain comfort in higher inlet water temperatures prevalent in China, compared to Europe [10]. - Noise reduction involves a comprehensive approach, utilizing psychological acoustics to ensure products operate quietly and unobtrusively [11]. - Smart features, such as remote operation and temperature settings via an app, have emerged from Chinese consumer demands, influencing global product development [11]. Group 4: Global Innovation Hub - Since 2019, collaboration with Southeast University has led to algorithm optimization and sensor integration, resulting in products that appeal to European markets, with approximately 300,000 water heaters exported annually to over ten European countries [13]. - The role of the Chinese market has fundamentally shifted from being a traditional manufacturing hub to becoming a center for global innovation [15]. Group 5: Cross-Cultural Brand Recognition - Successful products can achieve global consensus, as evidenced by the popularity of brands like Labubu among young consumers in China and worldwide [17]. - The operational strategy of foreign brands in China has evolved to deeply adapt to local needs while maintaining core standards, leading to local innovations that can set global benchmarks [18].