China’s second-generation factory owners are adapting to significant economic challenges by embracing digital solutions to modernize and sustain their family businesses. As traditional manufacturing faces competition from lower-cost regions, the next generation of entrepreneurs is turning to cross-border e-commerce and branding initiatives to increase sales and global reach. Platforms like Pinduoduo’s Temu allow them to bypass intermediaries and connect directly with international consumers, helping to overcome declining traditional export channels and high logistics costs.
Many younger factory owners are also innovating by introducing unique designs and independent brands, moving beyond their families’ traditional role as OEM suppliers for foreign brands. This shift not only targets profitability but also seeks to build resilient, globally recognized Chinese brands. Government support for cross-border e-commerce and intellectual property rights is further helping these entrepreneurs pursue international growth in a competitive global market.
In China, the new generation of factory owners, known as chang er dai, is navigating a rapidly evolving economic landscape by embracing digital solutions and cross-border e-commerce. As they take over family businesses, these young entrepreneurs are not only modernizing operations but also shifting their focus from traditional manufacturing to innovative branding and direct sales to consumers.
Many of these second-generation owners, often equipped with international education and modern management skills, are leveraging digital platforms to expand their market reach and enhance competitiveness. They face significant challenges, including increased labor costs and competition from lower-cost manufacturing regions like Southeast Asia. However, their proactive approach to digitalization and e-commerce is seen as crucial for driving the next wave of industrial growth in China.
The emergence of China’s second-generation factory owners, or chang er dai, marks a pivotal shift in the manufacturing landscape. These young leaders, often educated abroad, are leveraging digital tools and e-commerce platforms to innovate and sustain their family businesses. They face stiff competition from Southeast Asia, driving them to adopt automation and modern marketing strategies to enhance efficiency and appeal directly to global consumers. This generational transition is seen as essential for China’s industrial upgrade, particularly as first-generation entrepreneurs approach retirement.
