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Tech helps companies branch out to lift sales
5/17/2018


Robust development of the digital economy and services sector in the coastal city of Qingdao, Shandong province, has improved people's lives and seen a number of local enterprises that diversified their product ranges enjoy increased sales.

Zou Yansong, vice-president of Qingdao Hisense Trans Tech, said a decade of research by the company on traffic congestion had helped traffic in the city flow more freely.

He said its key product, widely applied in daily life, is the "congestion killer", a smart transportation system that solves urban traffic bottlenecks by adjusting traffic lights in a timely manner if a road is blocked by an accident.

In 2016, Qingdao had the worst peak-hour traffic jams in China, according to a report by domestic navigation company Amap and the Ministry of Transport's Scientific Research Institute.

But the Hisense system led to a dramatic improvement last year, with congestion easing by 9.66 percent - the sharpest decline in 78 cities nationwide - and Qingdao dropping to 40th on the list.

Zou said the company has also developed an integrated transportation monitoring system that will see traffic flow more smoothly during next month's Shanghai Cooperation Organization summit.

"This year, the smart traffic products will be applied to Qingdao Jiaodong International Airport, which will also be China's first transportation hub gathering flights, high-speed railway and subway at one spot," Zou said. The airport is expected to open next year.

The city, home to the world-famous Tsingtao Beer and home appliance giant Haier, has made significant achievements in supply-side reform and the nurturing of new economic drivers. From January to February, profits of its larger industrial enterprises rose by 12 percent, half a percentage point more than in the same period last year.

New industries are emerging and the development of new technologies is accelerating. In the first quarter this year, production of new energy vehicles was forecast to rise by 1.6 times, and that of integrated circuits by almost two-thirds.

Li Gang, head of Qingdao's development and reform commission, said the city plans to invest 300 billion yuan ($47.24 billion) to boost new economic drivers, with key projects being piloted in four demonstration zones, which focus on areas including maritime and coastal projects.

Another company forging ahead with supply-side reform is Tsingtao Beer. The company's market capitalization hit a record high last year, with sales up 34 percent in the Asia-Pacific region, 44 percent in Oceania and 36 percent in Latin America.

"As a company with a history of 115 years, we have been thinking in recent years about creating new products that will better meet consumers' tastes and demands, so as to better lead the beer market," said Yin Hua, the head of Tsingtao's research and development department.

She said the company brought about 40 new products to market last year. "Increase in product variety has helped improved efficiency," Yin said.

 


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