Competitive Business Models in the Chinese Market


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Competitive Business Models in the Chinese Market

  1. 1. Competitive business models in the Chinese MarketCompetitive business models in the Chinese MarketZvi Shalgo – CEO, PTL GroupMarch 20th 2013More than Management ™
  2. 2. China Economy forecast
  3. 3. China employee monthly salaryHigher Labor Cost
  4. 4. The number of Chinese Internet users is increasing at a dramatic pace — over 2100% in thelast 12 years.Source: Social TimesInternet Users in ChinaInternet Users in China
  5. 5. Studies are showing a dramatic increase in the amount of e-commerce that occurs in China,and expectations are that Chinese online trade will grow to be the world’s largest by 2015.Source: Social TimesOnline Sales in ChinaOnline Sales in China
  6. 6. FIE’s focus has shifted from top tier clients to the fastgrowing and extremely competitive mid-market.Selling “advanced technology” and “European quality”alone are not enough to sustain a marketing advantage.Chinese Domestic Market ForcesThe Chinese Government is supporting chosen localindustries financially, technologically and commercially.Rising operational cost reduces China’s attractiveness as alow cost manufacturing center. Over 70% (AmCham 2011survey) of manufacturing FIE’s are “made for China”
  7. 7. Chinese Domestic Market ForcesEffective Operations andStrategic Investments in supportTHE MAINwww.PTL-Group.cominfrastructure has become THE MAINCHALLENGE in the race towards acompetitive advantage
  8. 8. What normally goes wrong during penetration to China?What normally goes wrong during penetration to China?
  9. 9. New Operational Concepts:New Operational Concepts:• Outsourcing key management & operations resources• VC, PE - Getting investment from Chinese-Foreign funds• Working with Chinese local governments to develop newsupport structures fitting small technology orientedsupport structures fitting small technology orientedcompanies• Following up Israel / China governmental supportinitiatives (“100 Million”, Joint R&D Funds)
  10. 10. Industrial IncubationIndustrial Incubation
  11. 11. LocalLocal R&D operation as your foot hold in ChinaR&D operation as your foot hold in Chinalocalization of products and knowhowpre-sale and after-sale focusinvestment/cost savinglocal supply chain supportSigning Ceremony between Matrix Global and CZ Government
  12. 12. Chinese & Israeli Governments start to develop updatedChinese & Israeli Governments start to develop updatedapproaches to supportapproaches to support technology oriented companiestechnology oriented companiesLocal operations are a key tocommercial success in ChinaLocal operations are a key forlocal investmentCZ Mayor Yao Xiaodong (right),Chinese Ambassador to Israel Gao Yanping (center)Industry, Trade and Minster Shalom Simhonparticipated in a ceremony to mark the signing ofMatrix Global’ s agreement.
  13. 13. Zvi ShalgoEmail: exec@ptl-group.comMepi FrankelEmail: mepi@ptl-group.comShanghai Head OfficeRoom 301, 798 ZhaoJiaBang Rd.Shanghai, 200030, P. R. ChinaPhone: +86 21 64453190, Fax: +86 21 64453191Contact UsContact Us::www.PTL-Group.comwww. PTLwww. PTL--Group.comGroup.comChina • Israel • The Netherlands • Italy
  14. 14. Industrial TurnkeyProject ManagementIndustrial IncubationIndustrialIndustrialProjectsProjectsOperational AuditsTurnaround ofunderachievingsubsidiaries in ChinaBusinessBusinessRecoveryRecoveryInvestmentInvestmentEquity InvestmentsPartnering with PE/VCWhatWhat PTLPTL GroupGroup Does?Does?DistributionLogisticsWarehousingHuman ResourcesFinancial managementManagementManagementSolutionsSolutionsOperations Management``Financial managementMarketing projects
  15. 15. Some of Our Leading ClientsSome of Our Leading Clients