The FMCG Insider: 5 Minutes with Amanda Sun from GN ReSound China

Interviewed by Kourosh Asghari 柯罗诗 , VP Consumer Industry, Cornerstone Global Partners (CGP Group)

The FMCG Insider is a look inside China’s Consumer Industry through the eyes of local and foreign experts* as interviewed and summarized by Kourosh Asghari, VP at Executive Search firm CGP Group.

This is our June 2024 issue of "The FMCG Insider" featuring a conversation with Amanda Sun, the General Manager of GN ReSound China, a leading Danish hearing aid company. View the previous issues with Blackmores and Ferrero

Meet Amanda Sun, General Manager of GN ReSound China

• Before becoming General Manager for GN Resound Amanda had a varied career in FMCG, medical devices and consumer healthcare.
• Amanda started her career with Thermo Elemental in a product management role, before moving to Procter & Gamble in sales and commercial leadership roles, before joining GN Resound Amanda was the BU Head of Coloplast Consumer.

Kourosh: Could you tell us about the hearing aid industry, particularly GN Resound China?

Amanda: In terms of the hearing aids segment, China has big opportunities regarding the penetration rate and product upgrades. According to research data, the aging population (above 65) is 15.4% and will account for 22.3% of the total population in 2035.

On average, one-third of the aging population will have hearing problems. Hearing aids offer a solution to improve their quality of life. In the current China market, the penetration rate above age 60 is around 5%. The majority of this is in the mid-to-low end product segment market. ?This penetration rate is relatively low compared to developed markets globally. Thus, we believe that China is a huge potential market with more and more aging populations and the increasing affordability of high-end hearing aids.

Kourosh: The hearing industry has some very traditional offline and professional channels and eCommerce seems to have some obvious barriers. How do you see digitalization impact the hearing aid industry in terms of sales and marketing in the coming several years in China?

Amanda: Digitalization will be the next era of the hearing aids industry, not only limited to eCommerce, but also for marketing and services which help to greatly improve the consumer experience and operation efficiency. Hearing aid segmentation in China is found within the “Class II” medical device classification.?

This requires very high levels of professionalism in testing, diagnosis, and fitting services throughout the lifecycle of a product. For decades, this has been done offline. With the increasing digital capability, we saw more opportunities to leverage digital solutions to drive awareness and education and provide some post-diagnosis light services to better synchronize professional online/offline service channels. ?Continuously digging out the power of digitalization will be the next magic engine for this industry.

Kourosh: The “grey economy” has become a mega trend in China but at the same time consumers have become cautious about spending. How do you see this playing out?

Amanda: Definitely the “grey economy” will be a blue ocean growth opportunity requiring more capability, efficiency, and professionalism. Chinese consumers want value for money. They are not afraid of paying for high-quality products if they can improve their quality of life. According to the global benchmark, we still have a long way to go to have the best product with a reasonable price that fulfills consumer needs.

?Kourosh: You have worked in some very different industries – FMCG, Medical Devices and consumer healthcare. What are some of the observations you have about some of the differences in their business models and the type of talent and cultures that are in these industries??

Amanda: Different industries have different business drivers, models, and of course different cultures. In the healthcare industry, product superiority is the number one driver. A high level of professionalism and quality engagement with the HCP (Health Care Professional) is essential.? In FMCG, the product and commercial operations are the key to winning large-scale consumer acceptance.?

Kourosh: One of the biggest challenges for GMs for foreign companies in China is the engagement with stakeholders in global or regional HQ. Do you have any tips to share with your peers or aspiring GMs of MNCs in China?

Amanda: Indeed. In my belief, market expertise is the No.1 value you can create for the company. You will need to be the China category and market expert above and beyond anyone at HQ. Secondly, engagement with key stakeholders is essential to make sure everyone is on the same page regarding strategy, planning, execution, and expected results. Last but not least, be brave to make decisions and speak loudly. You are the representative of the company in the market, you should behave with high ownership and empathy, for consumers, customers, and company employees.

Get in touch with Kourosh Asghari 柯罗诗 at [email protected] to talk more about the FMCG industry, especially if you are looking to hire talent to grow your business.

* The above interview transcript features a conversation with an individual who is not representing their company. It is important to note that the views expressed during this interview are solely those of the individual and do not necessarily reflect the opinions, policies, or beliefs of their employer or any affiliated organization. The purpose of this interview is to provide insights and perspectives from a personal standpoint rather than as an official representative of a particular company.