"400 out of the Forbes 500 companies have invested in more than 2,000 projects in mainland China. And that was four years ago." - Thomas Friedman
Business Private Eye Asia provides our clients with the strategic market intelligence they need to make critical decisions in China.
Business Private Eye assists state-owned enterprises in China in applying CI to adapt to the presence of market competition, providing insight into how to appraise the competitive strength of competitors and use this information to create competitive strategies.
China is the biggest economic success story of the last twenty-five years. GDP growth has averaged at around 10% annually during this time frame with an estimated record of 10.5 percent in 2007. Despite slackening in 2008, China's economy persists in enlarging and developing, and the demand for energy sources, infrastructure, technology and products and services is increasing exponentially.
Why China is a lucrative market 在瓷器中的商業機會
China has experienced a huge metamorphosis over the past quarter-century. In 1979, when economic reforms began, China was predominantly an agrarian economy with practically no private sector to mention. Since then, however, China has become the manufacturing factory of the world, raised two thirds of its people out of poverty and, in the past ten years, it has constructed enough roads to encircle the equator 16 times!
This rapid rate of development is creating broad-ranging opportunities for business throughout China in sectors as diverse as energy, sustainable and environmental technologies, advanced engineering, healthcare and financial services. The world is gradually seeing China's demand match U.S. and European business power.
Opportunities in China's Regional Cities
The opportunities for business in China are not only in the popular Chinese business centers of Beijing, Shanghai, Guangzhou and Shenzhen, but likewise further adrift in various emerging regional centres. Companies will benefit tremendously if they could employ their strengths to the many opportunities throughout China.
What are the challenges?
Managing risk and confronting challenges is essential in conducting any business globally. China is not exempted. Strategies for the protection of intellectual property rights and due diligence are critical for success. Additionally, acquiring an understanding of Chinese business culture and the importance given to good relationships is essential.
However, many of the potential pitfalls can be avoided with sufficient preparation, in-depth research and by seeking competent, quality legal and professional advice whenever needed.
Customs & Regulations
There are numerous agents and consultants inclined to represent on behalf of American and European companies desiring to do business in China. These range from large overseas trading firms with regional offices in China, to smaller specialist firms based in the region.
An agent or consultant can prove priceless to a company without the resources to establish a representative office in China, or to companies requiring supplementary business intelligence on business practices in the country. The main function of a representative office is to promote products and establish contact with end users; to mediate with Chinese commercial and government organisations in matters relating to the company; and to monitor market opportunities.
Export Marketing Research Plan
Successful exporters study their entry into new markets with proper attention. Companies may intend to employ export marketing research to gather intelligence on details such as:
•Market size and segmentation •Regulations and legislation •Customer needs, demands, usage and attitudes •Distribution channels and Value chain •Trends •Competitor activities, promotion, strategy and performance
How to conduct business in China
Companies often discover that entering the Chinese market is quite intimidating. There are numerous issues to consider ranging from business culture and language to local standards and regulations. However, entering China is essential for companies desiring to compete in the current globalized economy. The following details supply a guideline for advantageously doing business in China:
•Leave preconceptions at home •Conduct due research on the market and on possible partners •Exercise patience when establishing business relationships and when dealing with bureaucracy •Be prepared to adjust and adapt as conditions often alter quickly and circumstantially in China •Gather quality independent legal professional advice •Acquire specialist legal advice on the best method to guard intellectual property rights (IPR); lastly, •Do not forget to conduct due diligence •If your company is planning to do business in China, it is best to begin by spending some time contemplating on your company's China goals. •Below are some questions that should help companies to focus their thoughts, as well as emphasize areas for further research.
Questions to study before doing business in China
If your company is contemplating on conducting business in China, it is best to start by spending some time thinking about your company's China objectives. The ten questions listed below should help you to focus your thoughts, as well as highlight areas for further research.
•Do you plan to purchase from China, sell to China or both? •Do you plan to establish your own company presence in China, for instance, through a representative office, wholly foreign-owned enterprise (WFOE) or joint venture? •Is it necessary for you to be involved in China at all?
•What are the unique selling characteristics of your good or service? •Do you have information if there is a market for your good in China? •Do you know if your company can be competitive in China? •Do you have the time and resources to handle the demands of communication, travel, product delivery and after sales service?
•Do you understand how to secure payment for your goods or service? •Do you understand where specifically in China you should begin? •Do you understand how to locate and select potential partners, agents or distributors?
"China is a threat, China is a customer, and China is an opportunity... You have to internalize China to succeed. You cannot ignore it.” – Kenichi Ohmae, quoted in The World is Flat, Thomas L. Friedman
The Chinese market offers great business opportunities due to its rapid economic growth and huge market, however, it has its fair share of challenges, ranging from inadequate market data, inappropriate entry strategy, lack of access to sales channels, difficulty in finding the right partners and cultural differences etc ...
Over the years, Business Private Eye (China) has developed a practical and systematic approach to help our clients reduce these risks and maximize the return on their investment in Chinese market. Employing our local experience and network, we can assist our clients to acquire valuable market information, undertake comprehensive market analysis, draw up appropriate entry strategy, establish best distribution channels and expand our clients' business effectively in China.
Using high-level methodologies, our team of analysts conduct customized, objective, and discreet research to help multinational and domestic Chinese companies understand how to seize advantage of the fastest growing economy in the world with actionable initiatives.
Our clients come from a variety of industries. We work with Fortune 500 and leading Chinese companies.
Call our Hong Kong Office for more info: +852-81714273 or +852-81714-BPE