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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

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A robot demonstrates sorting packages at the China International Supply Chain Expo in Beijing on June 22. Photo: EPA
Judy Xue

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.

L’Oréal, for example, has accelerated its deployment of artificial intelligence and automation to support its growing e-commerce footprint and operational needs. After launching a smart operations centre in Suzhou, east China, the cosmetics giant rolled out automated sorting systems, mobile robots and intelligent storage to speed up deliveries.

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.

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