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Market Survey on Services Sector in China
Market Survey on Services Sector in China
Market Survey on Services Sector in China
Market Survey on Services Sector in China
Market Survey on Services Sector in China
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Market Survey on Services Sector in China

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to order the full report please visit http://www.osec.ch/de/blog/market-survey-services-sector-china …

to order the full report please visit http://www.osec.ch/de/blog/market-survey-services-sector-china






















The Chinese economy is currently in a phase of consolidation and especially the former growth engine of consumer exports has been struggling. In this light the focus of the Chinese government for future growth has shifted to developing the domestic consumption, where the service sector takes in a key role. While the sector is still underdeveloped compared with western economies, it is estimated that the service sector will surpass the industrial sector by 2015 and account for around 50% of China’s GDP.
In recent years the rising disposable income of Chinese citizens has gone hand in hand with an increased demand for higher quality. Paired with the large trade surplus and the Chinese government’s focus on the service sector, this should create opportunities for foreign service providers.
While the Chinese market certainly offers opportunities to foreign market entrants, it is important to keep in mind that these chances as well as the associated market entry barriers and difficulties are very much industry specific and can change within the same country from province to province. These facts should be carefully considered before making a decision to enter the market. For some sectors such as finance the regulations will be the key issue, unfair competition in public tendering is an obstacle in the engineering field, while gaining access to Chinese clients is the main issue for foreign consulting firms.
While not being able to comprehensively cover all areas within the services sector, in this study we highlight 5 sectors we believe to hold potential for Swiss companies: Engineering, Finance, Tourism, Design & Architecture, Consulting. Each sector is individually analyzed and an overview is given including the current state and future trends, the competitive landscape, the regulations and challenges, as well as the general considerations and opportunities for Swiss companies.

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  • 1. Market Survey on Services Sector in China.May 2012.osec.ch
  • 2. Market Survey on Services.Sector in ChinaTitle. The Services Sector in ChinaLanguage. EnglishNumber of pages. 120 pagesContent. The Chinese economy is currently in a phase of consolidation and especially the former growth engine of consumer exports has been struggling. In this light the focus of the Chinese government for future growth has shifted to developing the domestic consumption, where the service sector takes in a key role. While the sector is still underdeveloped compared with western economies, it is estimated that the service sector will surpass the industrial sector by 2015 and account for around 50% of China’s GDP. In recent years the rising disposable income of Chinese citizens has gone hand in hand with an increased demand for higher quality. Paired with the large trade surplus and the Chinese government’s focus on the service sector, this should create opportunities for foreign service providers. While the Chinese market certainly offers opportunities to foreign market entrants, it is important to keep in mind that these chances as well as the associated market entry barriers and difficulties are very much industry specific and can change within the same country from province to province. These facts should be carefully considered before making a decision to enter the market. For some sectors such as finance the regulations will be the key issue, unfair competition in public tendering is an obstacle in the engineering field, while gaining access to Chinese clients is the main issue for foreign consulting firms. While not being able to comprehensively cover all areas within the services sector, in this study we highlight 5 sectors we believe to hold potential for Swiss companies: Engineering, Finance, Tourism, Design & Architecture, Consulting. Each sector is individually analyzed and an overview is given including the current state and future trends, the competitive landscape, the regulations and challenges, as well as the general considerations and opportunities for Swiss companies.Author. Kilian Widmer; Swiss Business Hub China The JLJ Group, Shanghai
  • 3. TABLE OF CONTENTINTRODUCTION ..................................................................................................................... 6EXECUTIVE SUMMARY ........................................................................................................... 8 China Market Overview – Services Sector .......................................................................................8 Industry Focus: Engineering Services ..............................................................................................8 Industry Focus: Financial Services ................................................................................................. 11 Industry Focus: Tourism Services .................................................................................................. 14 Industry Focus: Design & Architecture Services ............................................................................. 16 Industry Focus: Consulting Services .............................................................................................. 18 Practical options for market entry ................................................................................................ 20MARKET OVERVIEW OF SERVICES SECTOR IN CHINA ............................................................ 21 Overview ..................................................................................................................................... 21 Impact of Worldwide Global Economic Crisis ................................................................................ 22INDUSTRY FOCUS: ENGINEERING SERVICES .......................................................................... 24 Overview of Engineering Services ................................................................................................. 24 Competitive landscape ....................................................................................................................... 28 Customer Analysis ....................................................................................................................... 36 Regulatory Overview.................................................................................................................... 39 Key Market Dynamics and Trends................................................................................................. 44 Considerations for Swiss companies ............................................................................................. 47INDUSTRY FOCUS: FINANCIAL SERVICES ............................................................................... 48 Overview of Financial Services ..................................................................................................... 48 Insurance Services ....................................................................................................................... 51 Overview of insurance services .......................................................................................................... 51 Life insurance competitive landscape ................................................................................................ 52 Non life insurance competitive landscape .......................................................................................... 54 Banking Services .......................................................................................................................... 56 Overview of banking services ............................................................................................................. 56 Banking services competitive landscape ............................................................................................ 59 Fund Management ....................................................................................................................... 61 Overview of Fund management ......................................................................................................... 61 Fund management competitive landscape ........................................................................................ 62 Geography ................................................................................................................................... 64 The Swiss Business Hub- All rights reserved - 2012-7-2 3
  • 4. Regulatory Analysis...................................................................................................................... 65 Key Market Dynamics and Trends................................................................................................. 67 Considerations for Swiss Companies ............................................................................................. 69INDUSTRY FOCUS: TOURISM SERVICES................................................................................. 72 General Overview of Tourism Services .......................................................................................... 72 Inbound Tourism ......................................................................................................................... 72 Overview of inbound tourism ............................................................................................................. 72 Outbound Tourism ....................................................................................................................... 73 Overview of outbound tourism........................................................................................................... 73 Outbound tourism products ............................................................................................................... 76 Competitive Landscape ................................................................................................................ 77 Geography ................................................................................................................................... 80 Regulatory Analysis...................................................................................................................... 81 Key Market Dynamics and Trends................................................................................................. 82 Considerations for Swiss Companies ............................................................................................. 83INDUSTRY FOCUS: DESIGN & ARCHITECTURE SERVICES ........................................................ 85 General overview of design & architecture services ...................................................................... 85 Competitive landscape ................................................................................................................. 87 Geography ................................................................................................................................... 91 Regulatory analysis ...................................................................................................................... 92 Key Market Dynamics and Trends................................................................................................. 94 Considerations for Swiss Companies ............................................................................................. 95INDUSTRY FOCUS: CONSULTING SERVICES ........................................................................... 97 General overview of consulting services ....................................................................................... 97 Information Technology Consulting .............................................................................................. 98 Overview of IT consulting ................................................................................................................... 98 IT consulting competitive landscape .................................................................................................. 99 Management Consulting ............................................................................................................ 101 Overview of management consulting .............................................................................................. 101 Management consulting competitive landscape ............................................................................. 102 Geography ................................................................................................................................. 104 Regulatory analysis .................................................................................................................... 106 Key Market Dynamics and Trends............................................................................................... 107 Considerations for Swiss Companies ........................................................................................... 108
  • 5. PRACTICAL OPTIONS FOR SWISS PLAYERS APPROACHING THE CHINA MARKET .................. 110 Possible market entry strategies................................................................................................. 110SUMMARY AND CONCLUSIONS ......................................................................................... 112APPENDIX.......................................................................................................................... 115 A.1 Case Studies......................................................................................................................... 115 A.2 Engineering disciplines in Chinese universities ...................................................................... 120 The Swiss Business Hub- All rights reserved - 2012-7-2 5

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