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Second-generation entrepreneurs bring new life to family businesses(People's Daily Online) 14:39, March 20, 2025
Last year, China's total import and export volume reached 43.85 trillion yuan (about $6.07 trillion), with cross-border e-commerce accounting for 2.63 trillion yuan—an increase of 1 trillion yuan compared to 2020. Nearly 700,000 entities were involved in foreign trade.
Meanwhile, a new wave of succession is underway in China's private enterprises, as the next generation—often referred to as "factory successors"—takes over. According to recent research by Alibaba's wholesale marketplace 1688.com, nearly 80 percent of the second-generation entrepreneurs are post-90s, post-95s, and post-00s. Over half have studied abroad, and 54 percent have been managing factory operations independently for over three years.
Bringing fresh ideas and energy, how are these factory successors shaping the manufacturing industry? How does their approach to expanding overseas differ from that of their predecessors? And how do they establish a competitive edge in an era of increasing external uncertainties?
To find out, several of them shared their experiences and perspectives on taking over the family business.
Huang Yuxiang, young head of a garment factory
In January 2023, Huang Yuxiang's father asked her to resign and return home immediately. She rushed back to her home in Tongxiang city, east China's Zhejiang Province, and found the company in dire straits.
Photo shows Huang Yuxiang (first from right). (Photo courtesy of the interviewee)
After graduating with a degree in accounting in 2020, Huang, born after 1995, worked as a purchasing and sales manager in internet and cross-border e-commerce companies. Little did she know, those early career experiences would soon become the key to saving her family's factory.
Huang took over her father's cashmere clothing factory and quickly steered it toward online retail to boost cash flow. By selling cashmere and blended coats on live-streaming platforms, Huang steadily turned inventory into profit.
The business began showing new trends. For instance, the customer base, once focused on educated women over 40, is now younger, with more flexible styles. Additionally, small-batch customization via online platforms allowed faster market responses and the ability to embrace fashion trends.
During the 2025 Spring Festival, Huang and her family visited Europe, touring garment and wholesale markets in France, Italy, and Switzerland. They found that most Chinese-made women's clothing was stuck in the lower-end market, and high-quality products like cashmere and silk had yet to truly go global.
"This year, we must focus on overseas markets, especially on TikTok, and seize the opportunity," she said.
Dong Fanming returns from the U.S. to oversee food factory operations in Shanghai
"I was a software engineer in Silicon Valley, the U.S., involved in multi-million-dollar projects. Now, I'm working with 3-yuan or 0.3-yuan cakes," Dong Fanming said, joking about taking over his family business.
Dong, born after 1990, is now general manager of Shanghai Xinmai Food Industry Co., Ltd. in Shanghai.
Photo shows Dong Fanming (right). (Photo courtesy of the interviewee)
While he proactively took over, the challenges were unexpected. "At the time, a major client canceled our contract, and their orders made up 60 percent of our sales. It was a huge challenge," he recalled.
Seeing the offline business grow stagnant, Dong quickly pivoted to the online market, tapping into China's supply chain and product advantages. "When we shipped products to major overseas supermarket chains, feedback that once took a month now arrives in a week, and many of our products are reaching foreign markets," he said.
Having lived in the U.S. for 10 years, Dong naturally turned his focus to overseas markets as the company stabilized.
"The European and American markets are large, and product updates happen much slower than in China. That's where our opportunity lies," he said.
Over the past two years, the company has dedicated more resources to expanding overseas, with new business agreements steadily progressing. Dong hopes that by the end of this year, cross-border transactions will account for about 30 percent of the company's business.
"With China's complete supply chain, great products, and competitive prices, there is a huge market overseas. Our good products need to go global," Dong expressed.
Xiang Guowei plans to reach $4 million in cross-border sales for his company
Xiang Guowei, born after 1995, is general manager of Zhejiang Wanle Packaging Technology Co., Ltd., located in Wenzhou of Zhejiang.
