Add text here Giles Blackburne 16 May 2013 Avoiding problems, mistakes and regrets in China
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
No excuse for not preparing well…..
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Are you entering China for the right reasons? China is a large market…………. China has low cost labour……….. Not much competition for my product……
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Getting the location right….. Proximity to market Proximity to ports Proximity to raw materials Development Zones Coastal vs Inland Efficient infrastructure Cheap labour/educated labour Welcoming and flexible local government support Preferential policies and tax concessions?
Opportunities in cities you may not have heard of……
Sector: Advanced Engineering
Sector: ICT
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Choosing the right structure for you….. Export Agent/distributor Representative office Investment Ownership: Joint venture Wholly Foreign Owned Enterprise Activity: Manufacturing Trading Consultancy ‘Holding Company’; ‘Minimum Registered Capital’ Is investment in your sector ‘encouraged, restricted, prohibited or permitted’. Chinese employment law
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Choosing the right partner…. Considering the location of the partner and proximity to actual market opportunities Understanding the technical expertise already possessed by the Chinese partner Assessing the existing production and distribution capability of the partner Knowing the quality of the partner’s relationships with other players critical to success Understanding the objectives of the partner. Are they suitable? Knowing the background of the partner
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Selecting a brand name that suggests something about the product benefits and product qualities and which does not carry poor meaning in Chinese Conveying your company background clearly and confidently in the appropriate language Communicating product benefits within the context of relevant government policies Keeping communication consistent and through the right people Consider adapting your offer or business model to suit the Chinese market Conveying the right message
What kinds of Problems, Mistakes & Regrets? Lack of preparation and research Entering the market for the wrong reasons Choosing the wrong location Choosing the wrong structure Choosing the wrong partner Conveying the wrong message And more…not carrying out due diligence, not registering intellectual property, ignoring cultural differences
Due diligence Registering intellectual property Protecting intellectual property Paying attention to cultural differences
Thank you! 谢谢