Forum Business

China’s booming economy and its global position in various industrial fields. But today many Chinese success story based around the ability of countries to imitate the products other strong economies and low production costs of goods designed especially abroad

There will be a strong focus on increasing the volume of patents submitted by the scientific team of the country, and to provide “added value” of the industry which was established by increasing the amount of R & D staff working in almost every sector.

In addition the plan outlines some specific areas that intend to improve and this is where savvy investors may be able to seize opportunities for government support and funding through partnership working with Chinese companies operating in this field already.

Areas identified are as follows:

Health services – including a special focus on infectious, chronic and mental illness allows diagnosis, treatment and prevention of this condition.
Disaster reduction – particularly the development of early warning systems to identify potential earthquakes, floods, storms (such as hurricanes and typhoons) and landslides. Leading with a system that prevents the loss of lives and improve the sustainability of communities affected by the disaster.
Food – There will be funding available to establish a comprehensive food safety protocols, including the examination system to implement control.
Development – sustainable development techniques will be supported to enable the development of green cities and towns.

China has always been very good to support the efforts shown in the service development plan, and the possibility that the country’s new innovation strategy will be no exception. There are real incentives for the research firm focused on building relationships to take advantage of a favorable business environment and a wealth of highly qualified staff costs are relatively low but the Chinese to implement R & D work in key areas.

With so much interest in China’s booming economy we find ourselves working with many companies entering the local market. We thought we would share some of their questions (and answers) to help others look similar steps.

T. Where should I look for my business?

A. There is no simple answer to this, many foreign business investments that are found in or around major population centers such as Beijing, Guangzhou, Shenzhen and Shanghai.

Q. Is it easy to open a business in China?

A. Yes and No. The Chinese government has taken great strides to make life easier for foreign investors but it is not always a simple process and can vary widely between locations. Shenzhen Special Economic Zone (SEZ) is one of the easiest places to open a company, but labor costs are higher than in other regions may be greater than the advantages of it.

T. What is the best structure to use for business in China?

A. There are three main types of companies that are open to foreign investment in this country: Representative Office (RO), Wholly Foreign Owned Enterprise (WoFE), and Joint Venture (JV).

Q. Whether doing business in China is much more difficult than doing business in the West?

A. No, but different from doing business back home. The complexity of culture rather than culture-based transactional relationships often mean that it is much slower than you expect (or believe) and there is generally a lower skill base in place, so that training and development and quality monitoring should play a key part in your strategy for success

China’s roaring economy is driving businesses from around the world to “sign when there are good”. This philosophy has allowed other investors that make sense to ignore the usual due diligence work that will last about market entry strategies elsewhere in the world.

Mattel and Best Buy are the two high-profile victim of a failure to understand the China market and how to maintain the brand in the country. Here are three tips to help you ensure your company does not make the same mistake.

Brand Aspiration

Brand is a relatively new concept in China, but with a certain class of people found themselves to be very, very rich aspirational brand is quickly able to increase their market share.

But market research is essential to determine whether China aspires to participate in your brand.

Localization

Size-fits-all approach will not always help, and once again the market research should help determine whether something will work or not in China. Color and the numbering scheme in particular need to check carefully to ensure they are “lucky” than those associated with death for example.

Starting in the Outback

Big bang launch of the Tier 1 cities like Beijing and Shanghai may be of interest, but if you fail in the locations you automatically fail everywhere.

Do not forget that the “face” is an important concept in China and if you’re wasting your brand stamped by running before you can walk, you will never again face a lost or customers that go with it.

China offers great opportunities but the way the Chinese are not in a hurry, and do not have to approach you to enter the market in a hurry. Approaching the country in a structured way to plan a step-by-step may not be glamorous like setting up a business in the entire upper tier cities and spending millions on marketing, but it has proven far more successful