Building virtual bridges in South African markets

By Xing Zhigang and Li Jiabao (China Daily) Updated: 2014-05-06 11:28

"Western brands provide products for the world rather than customizing for a country or a customer. They significantly trail us in responding to customer demand and innovation."

Localization is also an important factor in the subsidiary's growth in South Africa as well as a key strategy of the parent company's overseas expansion.

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"No matter whether it is Europe or Africa, we hire locals because they understand the environment and customers' demand and help in effective communication. Most of the local hires are in project positions but some have managed to make it to top management positions like chief operating officer, human resources head, or legal and financial department heads."

Sophia Liu, an integrated marketing communications manager with the subsidiary, said Huawei is one of the best when it comes to looking after local employees.

"As a local, I think Huawei is a very fair company. The conditions are very good. Cultural clashes are not a concern. What is valued is the employees' loyalty and devotion."

Liu worked for South Korea's LG Corp and advertising agencies before joining Huawei five years ago.

To cope with the growing talent shortage in South Africa, Huawei set up a training center in 2008. The center has trained more than 3,000 people, including engineers of carriers and its own employees.

The subsidiary is also taking care of developing the younger generation by creating educational opportunities. The company has provided fellowships to China, donated laboratories for local colleges and funded small and medium-sized enterprises through incubator projects.

"The digital divide here is huge. But if the younger generation can access advanced education through the Internet, they will be exposed to the whole world, which will bring infinite scope for their growth and future," Qi said.

Despite the bright business prospects, the subsidiary continues to face several challenges in South Africa.