Multinational companies continue to choose Shanghai for their regional HQ

Shanghai’s headquarters economy continues to thrive, with an increasing number of multinational companies establishing regional hubs in the city.

As of the end of June, a total of 985 multinational companies had received credit for their regional headquarters in the city. In July, the latest batch of 30 regional headquarters of leading multinational companies was accredited by the city government, indicating Shanghai remains a magnet for foreign investment in various industry segments.

DKSH

DKSH’s subsidiary, DKSH (Shanghai) Ltd, was recently awarded the Regional Headquarters Certificate for Multinational Corporations.

Carole Lin, Head Country Management, DKSH China, said: “This recognition not only boosts DKSH’s brand reputation, but also strengthens our position as a key provider of market expansion services. As a regional headquarters, DKSH can further enhance its resource integration, accelerate business expansion, optimize management structure, and support business growth across the Asia-Pacific region and beyond.”

DKSH is a Swiss multinational corporation with over a century of trade history in China. It has been expanding its scope and influence in the country over time. It has forged strategic partnerships with numerous international and domestic companies to help them expand and grow in the Chinese market. DKSH has also invested in several innovation centers across the country, especially in Shanghai. In 1996, DKSH (Shanghai) Ltd was registered in the Waigaoqiao Free Trade Zone.

“Our growth in Shanghai and China has benefited from the city’s favorable business conditions,” said Lin. “Both our company and Group headquarters believe that upgrading our company to a regional headquarters will bring significant positive impacts on our overall operations and management in the country, including a broader platform for talent recruitment, better implementation of group business and investment strategies, and enhancement of brand recognition.”

Kraft Heinz

World leading processed food maker Kraft Heinz decided to relocate its Asia regional headquarters from Singapore to Shanghai in 2021 in response to the growing importance of its Chinese business.

“Vast market space, cutting-edge technology and a diverse talent pool are the main reasons we set up our Asia regional headquarters in Shanghai,” said Bill Feng, chief financial officer of Kraft Heinz Asia. “As a local Shanghainese who has worked for different MNCs, I truly feel that Shanghai has made and keeps creating a favorable business environment and implementing lots of policies to unleash market potential and to attract top talents, and many of the government actions benefit us.”

Shanghai, for instance, has held the Double Five shopping festival for five years to expand consumption and promote the city as an international consumption hub. “Our Heinz brand joined the event this year, giving us a great opportunity to directly communicate with consumers and understand their real needs. More importantly, we can interact with many popular food brands and restaurants, exploring potential cooperation opportunities.”

Shanghai has also issued the Action Plan for Equipment Renewal & Consumer Goods Trade-ins, focusing on low-carbon and safe production, digitalization, and intelligence, which is in line with what Kraft Heinz is doing.

“Our Shanghai factory launched a Digital Transformation program in 2021, becoming a benchmark factory in the group. A total of 18 million yuan (US$2.55 million) has so far been invested in digitalization,” he said.

In July 2022, Shanghai issued the Opinions on Developing “Five Types of Economy” and one of those is “Innovation economy, which perfectly matches with Kraft Heinz’s priorities.

“In Shanghai, we can better understand directly the dynamic changes in consumer needs and consumption trends, which can help us respond to the market changes in a timely manner. That’s why we spent 15 million yuan to build a state-of-the-art customer experience center to create new ideas and products not only by ourselves but also with our customers and external chefs,” Feng said, referring to the Kraft Heinz Experience Center that officially launched in August 2022. It’s equipped with a full set of labs, industrial-grade kitchens, and a creative space that drives innovation at speed.

Leica Camera

Since setting up China headquarters in Shanghai, Leica Camera has fully leveraged the city’s unparalleled resources, significantly driving the brand’s growth in the Chinese market.

“China has seen a clear trend to ward consumption upgrades. As a century-old brand, Leica Camera sees vast growth opportunities and that’s why in 2015, we chose Shanghai as our China headquarters to be close to this important market and develop strategies that better align with local needs,” said Siegmund Dukek, managing director of Leica Camera China.

“For a high-end brand like us, Shanghai’s diverse talent pool and advanced logistic supply chain have strongly supported our operations and business expansions,” Dukek said. “We have fully utilized the city’s unique resource advantages and plan to focus on expanding into second- and third-tier cities, replicating the success we’ve had in Shanghai through a combination of online and offline strategies.”

Leica Camera has always been a leader in technological innovation. According to official data from the National Intellectual Property Administration, Leica's headquarters, Leica Camera AG, holds 423 active patents. In the Chinese market, the company has continued this tradition of innovation.

In May 2022, Leica Camera officially announced a strategic partnership with Xiaomi to collaborate on deep imaging technology. In February 2024, Leica Camera further strengthened its collaboration with Xiaomi smartphones by establishing the Xiaomi × Leica Optical Research Institute. Regarding product localization, Leica Camera has also partnered with China’s Hisense Group to actively expand the laser TV business.

“One of Leica’s strategic priorities in China moving forward is to further enhance our brand awareness, especially among the younger generation,” Dukek said. “We will collaborate with local companies, artists, as well as media to establish Leica as a cultural symbol in China and promote photographic art.”