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China Telecom
China Mobile
China Unicom
Hutchison 3G
Legend Group
Lenova
TCL
Haier
ChinaSoft
Great Wall
Software
Red Flag
Software
Huawei
Datang
Telecom
Zhongxing
China
Kejian
CEC
Telecom
GrandTech
Appropriate
Government agencies and Ministries
...and
many other companies
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Today,
China has become the world’s fourth largest economy
and its purchasing parity is already second to the United
States. This means that both large players and smaller
companies must include China in their strategic plans.
China's Gross Domestic Product in 2002 realized a 9
percent increase over 2001 and realized a 9.1 percent
increase in 2003 (in spite of SARS). It is expected to
increase 7 percent
during 2004 (limited to Central Government cap). China has the
strongest economy in the world at the present time.
China
represents a staggering business potential for
telecommunications, networking and enterprise
technologies, applications and implementations. China’s
accession to the World Trade Organization is widely
expected to trigger a further wave of inward investment
from foreign firms as the terms of entry to new sectors of
the China economy are progressively liberalized. Python
Marketing believes that the U.S.-based,
high-technology industry’s ability to grow out of the
current recession is going to depend very significantly on
these global markets.
Why?
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The
China market represents a way for U.S. and European
companies to help offset decreased revenues as Western
corporations slash information Technology expenditures |
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Expenditures
for technology infrastructure such as networking and
enterprise applications solutions are increasing at an
increasing rate |
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It
will be more expensive both in terms of time and money
to wait. Chances are your competitors are already
there |
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It is
difficult to ignore a market that comprises one-fifth
of the world's population, and an economy which will
soon be the world's largest |
For a
technology company, the question isn't really "should
we go to China." The question is "can we afford
not to go"?
Establishing
a presence in China is still a challenging experience for
unwary organizations, however.
The problems of growing market
share or succeeding in China are unique. We help you take
advantage of the exciting new opportunities in China by
guiding your company in developing the right business
relationships and cultural understanding to ensure your
success in China.
China
market entry consulting projects depend on the type of
investment vehicle and on the amount of information
readily available to the client. We
evaluate key
considerations on the behalf of our clients and provide seamless
multi-disciplinary services covering sales, marketing,
business development and legal issues including our Global
Market Entry strategic marketing and market research
capabilities.
Our
experience has shown that companies typically go through
three phases for a successful
China Market Entry. Phase 1 is an
evaluation of the opportunity and the competitive
landscape. In other words should you be there. Phase 2 is
a more detailed China market entry strategy and determines
how you will get there. Phase 3 is the actual
implementation or the process of getting there.
Phase
1: China Market Evaluation (should you be there?):
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Evaluate
WTO provisions specific to your business |
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Evaluate
market opportunity in your market segment |
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A
key competitor in the U.S. may not be a key competitor
in China. Conversely, a smaller competitor in the U.S.
market may have a strong presence in China. We
identify the competitive landscape in China and areas
in which competitive weakness can be exploited |
Phase
2: China Market Entry Strategy (how do you get there?)
| Decide
the appropriate entry strategy (export, Representative Office,
Joint Venture, Wholly Foreign Owned Enterprise). We
identify the different entry strategies and
determine their strengths, weaknesses and key
issues relative to your business and
capabilities |
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Identify
key cultural differences that will impact your
business and how to overcome these differences |
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Determine
capitalization requirements and develop preliminary
budget |
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Identify
potential customers (end-users, classical
distribution, SI's, VAR's, etc.) that represent the
highest probability of short-term success |
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Identify
potential Joint Venture partners (as necessary) |
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Develop
introduction roadmap |
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Identify
strategic relationships within government and industry |
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Identify
staffing requirements |
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Identify
tax issues |
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Research
office locations depending upon business and key
customer base |
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Conduct
legal, financial and business due diligence |
Phase
3: China Market Implementation (getting there)
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File
appropriate forms and documents for company
registration |
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Monitor
approval process |
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Develop
government mandated Feasibility Study, as required |
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Develop
strategy for State Government approval, as required |
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Arrange
partner introductions |
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Advice
on setting up a State Authorized Foreign Exchange (S.A.F.E.)
account that allows the extraction of Chinese
generated revenues to the home country |
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Arrange
for product demonstrations and promotions |
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Carry
out preliminary business discussions with target firms |
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Identify
office, manufacturing and/or R&D space, as
required |
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Negotiate
contracts (G&A services, business partner) as
required |
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Interface
with China legal counsel as required |
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Provide
interim sales, marketing and/or executive management
in China, as required |
Python
Marketing has over 10 years of experience working in
China with our extensive relationships, ranging from
the highest government officials to potential
channel partners and end-user customers, we can help
navigate the bureaucratic waters, speed up the
process of government approvals, gain market
intelligence and insider information not currently
available, and act as your virtual China management
team.
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