Case Study 1
One of our customers, a leading European furniture and accessories components
supplier, came to us in order to optimize their structure in Asia. With offices in
Hong Kong, Taiwan and two locations in China, the company felt that through
hasty setups and non-efficient handling of the operations, the China entities
could be situated in more optimal locations, and more importantly have cost
savings. After auditing the existing operations and receiving a full overview of
the current structure and cost of operations, a study was performed for the
customer to identify potential cost savings.
The study included the research objectives of:
• Office location costs for consolidated operations: Existing and new locations
were investigated, rent, safety, infrastructure, available labor and further details
• Labor: Cost of labor (according to relevant position and function) at the
equivalent locations including gross pay and employers contribution
• Warehousing: Including differences and possibilities of a warehouse in Hong
Kong, Free Trade Zones in China, Bonded Zones in China and locations in the
heart of China
• Logistics: Cost comparison outsourcing versus own structures
• Company Structure options
After our research, we assisted our customer successfully to close one office in
China, outsource the Hong Kong operation cost effectively to Klako, and set up a
warehouse operation for direct consolidated shipments to their worldwide
customers for China. This improved not only the customer's cost structure, but
also their delivery times and services that they were able to offer to their clients.
Case Study 2
A leading international manufacturer in the toy industry
approached Klako to assist in streamlining their China
operations. The company had established a sales office in Hong
Kong, as well as a factory in Guangdong Province. The goal was
to identify cost saving measures.
Together with Klako's assistance, the operational office in Hong
Kong was closed down, and employees either relocated to the
factory in China or contracts were terminated. Sales operations
were centralized in the factory, and Klako then took over the
registered office and operations of the Hong Kong entity. This
enabled the customer to save cost by reducing the fixed cost of
rent and maintenance of the office in Hong Kong. Klako's
experienced trade and logistics department took over the daily
handling of all invoicing and shipping documents. Klako's
professional accounting department is now not only handling
the accounting of the Hong Kong company, but also consolidates
the monthly reporting to the head office for both the China
factory and the Hong Kong "sales office".
This structure not only saved the customer operational cost, but
in addition, Klako was able to put tax efficient structures in
Case Study 3
One of Klako Group's recent projects was to identify
suitable distributors in the Shanghai area for a large
German manufacturer. Based on the client's
requirements, our market research team conducted a
comprehensive search for suitable partners.
Benefiting from Klako Group's extensive network in
China, we were able to provide our client with a list of
potential candidates within a short period of time. In
close consultation with Klako Group, the client
selected three distributors for a more thorough
investigation. Our market research team gathered
detailed background information including the
companies' financials, credit history, corporate
structure as well major suppliers and clients. Based
on this report, our German client was able to make an
informed decision, and has now taken up close
relationships with two of the distributors.
Case Study 4
A US manufacturer eager to enter the China market
was very pleased with Klako Group's Trade Fair
Assistance Services. The client planned to attend trade
fairs in China to identify suitable distributors, but
lacked the experience and resources to maximize the
outcome of such visits. After consulting the client
regarding their product specifications and precise
requirements, Klako Group selected appropriate trade
fairs in China. Our bilingual and experienced staff
attended these events, evaluated suitable distributors,
collected relevant information and catalogues, and
prepared a comprehensive summary of the findings.
The client assessed the information provided and
contacted several distributors in order to explore
opportunities for cooperation. At a later stage, the
client asked Klako Group to perform background
checks on some the candidates.
Case Study 5
When a Spanish manufacturer considered entering the Chinese
Market for distribution, the company's marketing director
contacted Klako Group regarding our market research services.
After preparing a detailed list of requirements in close
cooperation with the client, our market research experts carried
out a thorough investigation of the market and entry
requirements. This included studying market trends, market
size, as well as major distribution and promotion channels. Our
team gathered up-to-date information regarding relevant
regulations, product standards, and registration requirements.
Key competitors were identified and market opportunities
explored. Using various research methods, including desk
research, discussions with industry experts, distributors,
competitors and government officials, Klako Group was able to
deliver a detailed and comprehensive market research report to
the client. Armed with this information, the company's
executives decided that the Chinese market offered excellent
opportunities. Assisted by Klako Group, the company is now
working on a successful entry strategy.
Q: When Klako was formed?
A: Please visit www.klako.com
Q: Can investment be attracted to Pakistan?
A: Investment environment in Pakistan is favorable but
specialized consultants like Klako and Edelman are
Q: Should BOI, SDC and SMEDA develop investment
consultants in Pakistan?
A: Yes and without any delay.
Q: Should climate development be included in list of
preferential investment sectors?
A: Climate development businesses and consultants are
required for sustainable economic development.
Q: Who wrote 5 case studies?
A: These were written by Klaus Koehler, founder and
chairman of Klako Group.
Sajid Imtiaz: Expert Member CDKN, Member Advertising Age, Member Harvard Business Review