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Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
Doing Business in China & What U.S. Organizations Really Think
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Doing Business in China & What U.S. Organizations Really Think

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This presentation is focused on introducing the Chinese landscape and how US organizations can effectively build effective communications and engagement strategies to help ensure their businesses can …

This presentation is focused on introducing the Chinese landscape and how US organizations can effectively build effective communications and engagement strategies to help ensure their businesses can thrive in what is becoming an increasingly competitive environment.

Archived webinar:
http://promotions.prnewswire.com/LP_DoingBusinessInChina_OnDemandWebinar_20120426_DK.html

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  1. Understanding China: Part 1 Doing Business in China & What US Organizations Really Think
  2. Speakers Lee Green | Director, Operations (Asia) | PR Newswire • Over 12 Years in China • 10 Years Spent with PR Newswire • Communications, PR & New Media in China Gregory Gilligan | Managing Director | APCO Worldwide Gregory Gilligan | Vice Chairman | AmCham China • Over 15 years in China • Has Worked with AmCham China for Over 6 Years • Business Operations & Corporate Affairs in China
  3. An Introduction to Business in China Lee Green
  4. SOURCE: 24/7 Wall St. (Jan. 2012)
  5. They don’t localize their products/services They don’t de-centralize their management structure They over rely on foreign staff to drive the Chinese businessThey believe that if something works in the US it will work in China tooThey fail to do the appropriate research on potential business partners and then rush into an all-business relationship They forget that Chinese consumers are not American They tell Chinese consumers what they want instead of listening They fail to play to the masses – especially important online They spend too much time on perfect planning, procedures and rules They have too much confidence in their own brand
  6. Reasons Behind Groupon’s Failure in China: Didn’t fully understand the local market Poor Management Structure – over-relied on outsiders Selected the wrong Chinese partner Looked down on both the competition and consumers
  7. Reasons Behind Starbuck’s Success in China: Localized product offerings – green teas and dine-in services, etc. Careful brand positioning, again based on local market, that allowed for high pricing strategy Excellent customer service Effectively trains and retains top LOCAL talents
  8. AmCham ChinaBusiness Climate Survey 2012 Gregory Gilligan
  9. Business Climate Survey 2012 What is your forecast for 2012 China revenuesQ compared to 2011? Not dramatic, but 9% more see flat or down,Sample size: 6% more see only 10%2012=305 respondents growth.2011=3242010=288 Down 11-20% Down 1-10% Remain the same Up 1-10% Up 11-20% Up 20-50% Up over 50%
  10. Business Climate Survey 2012 How much do you estimate your company will increaseQ investment in China operations for 2012? No shiftSample size:2012=287 respondents2011=2812010=232 No expansion planned 1-10% 11-20% 21-50% over 50%
  11. Business Climate Survey 2012 Management-level human Top business resources constraintsQ challenges: Inconsistent regulatory interpretation/Unclear laws Non-management levelSample size: human resources constraints2012=339 respondents2011=250 Obtaining required licenses Corruption Bureaucracy Intellectual property rights infringement National protectionism 2012 Difficulty enforcing 2011 contract terms Local protectionism
  12. Business Climate Survey 2012 What do you think are the greatest risks facing your China organization?Q Chinese economic slowdownSample size: Global economic2012=321 respondents slowdown2011=337 Labor costs2010=262 Increased Chinese protectionism Labor shortages Much greater focus on slowdown and Deterioration of Sino-US 2012 relations labor costs Increased bureaucracy 2011 2010 RMB appreciation
  13. Business Climate Survey 2012 How do the following human resources issues affect your businessQ operations in China? Sample size: Negative impact Material damage011 2012=266 respondents 2011=303 Increasing salary and wage expenses Difficulty attracting, developing and retaining skilled workers/professionals More people Difficulty attracting, developing and see more retaining managers materialimpact; social Cost of social benefits benefit costs showed Difficulty attracting, developing and retaining technical staff biggest increase Difficulty firing employees
  14. Business Climate Survey 2012 Do you feel that China is losing competitive advantagesQ due to rising costs? Sample size: 2012=298 respondents 2011=340To a great degree Greater focus on cost competitivenessTo a some degree Not at all 2012 2011
  15. Business Climate Survey 2012 Are rising labor costs affectingQ your business operations? Yes No Sample size: 2012=287 respondents
  16. Business Climate Survey 2012 What effect will the implementation of the proposed socialQ insurance taxes on foreign employees in China have on your business operations? Sample size: 2012=321 respondents Positive effect No effect on operations Moderately negative effect on operations Severely negative impact on operations
  17. Business Climate Survey 2012 How has awarding of licenses changed in More than a third ofQ your industry in the past couple of years? members see worsening environment for licensing Sample size: 2012=178 respondentsLicensing procedures are more difficultLicensing procedures are less difficultNo change
  18. Business Climate Survey 2012 How are the relevant licenses in your industry applied?Q Sample size: 2012=175 respondents 2011=248 Foreign companies cannot be awarded the same licenses as Chinese companies Foreign companies can be awarded the same licenses as Chinese companies, but the approval is more complicated, lacks transparency and takes longer Licenses are equally awarded but enforcement varies and 2012 lacks transparency 2011 Licenses are granted equally between foreign and Chinese companies
  19. Business Climate Survey 2012 At times, China has forced technology or knowledge transfers fromQ foreign companies in exchange for market access. Are the effects of such practices negatively impacting your company or clients assessment of the business environment in China? Sample size: 2012=297 respondents One third of members report concerns about tech transfers Yes No
  20. Business Climate Survey 2012 How would you rate China’s enforcement of intellectual More members reportQ property rights? that IPR protection is ineffective despite IPR Sample size: campaign 2012=200 respondents 2011=251 2010=146 Totally ineffective Ineffective Effective or Very Effective
  21. Business Climate Survey 2012 If you have taken ADMINISTRATIVE action, how satisfied were youQ with the level of cooperation from the relevant Chinese officials? Sample size: 2012=154 respondents 2012 2011=184 Very satisfied 2011 Somewhat satisfied Somewhat dissatisfied Very dissatisfied
  22. Business Climate Survey 2012 If you have brought any infringements to COURT, were youQ satisfied with the level of cooperation from the Chinese courts? Sample size: 2012=131 respondents 2012 2011=70 Very satisfied 2011 Somewhat satisfied Improved cooperation from courts in infringement Somewhat dissatisfiedcases but 37% of members still dissatisfied Very dissatisfied
  23. Business Climate Survey 2012 Does slow or unstable Internet accessQ impede your ability to efficiently conduct business in China? Sample size: 2012=301 respondents Yes No
  24. Business Climate Survey 2012 How does the cyber security environment in China compareQ with that of other countries? Sample size: 2012=319 respondents Worse Two thirds ofmembers with aview on question Same report a cyber security market worse than in Better other markets N/A or Don’t know
  25. Business Climate Survey 2012 To what degree does Internet censorship impact your companysQ ability to conduct business normally in China? Sample size: 2012=299 respondents Severe negative impact Somewhat negative impact No impact Benefits my company
  26. China Online China Online Lee Green
  27. Understanding China: Part 1 Doing Business in China & What U.S. Organizations Really ThinkUnderstanding China: Part 2 The Media Landscape in China Traditional & New Media ConvergeUnderstanding China: Part 3 PR & Communications in China Win the Hearts & Minds of Chinese Consumers
  28. Engage With Us @leegreen282lee.green@prnewswire.com ggilligan@apcoworldwide.com leegreen282 gregorygilligan lee282
  29. Engage With Us @prnewswire www.prnewswire.com | www.prnasia.com prnasia @amcham_china www.amchamchina.org 中国美国商会
  30. Thank You!

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