Rabe said he would not underestimate the complexity of the Chinese market and will be committed to producing products more suited to the needs of the Chinese market.

"We transfer knowledge and expertise from Europe to China, but we don't think what works in the US or Europe will also work in China. That would be a mistake," he said.

To better understand the needs of target customers, Bertelsmann resorts to a very local approach in China by working exclusively with local management, which Rabe believes is key to business success in China.

"We bring expertise, content and brands to China, but what we don't know is the local market. That's why we hire local people."

He said the media is a very creative industry, something particularly based on the creativity of local people. Therefore, Bertelsmann also counts on the creativity and innovation of his Chinese employees and will invest heavily in creativity to maintain its market share.

"We see China as a source of innovation for Bertelsmann's other markets," he said.

Bertelsmann is experiencing a digital revolution in the online age and needs to accelerate the transformation of its media businesses from physical to electronic, insiders said.

The media giant, which also owns Random House, the world's largest publisher, and magazine group Gruner + Jahr, has been faced with the challenge of more people reading online globally.

Rabe said this digital transformation is also applied to China and he is confident in its results in the country because usage of the Internet and other digital devices is not only more advanced in China than in Europe, but also the Chinese government is now encouraging the development of the digital industry.

liulu@chinadaily.com.cn