Klako & China
5 Case Studies
Case Study 1
One of our customers, a leading European furniture and accessories components
supplier, came to us in order t...
Case Study 2
A leading international manufacturer in the toy industry
approached Klako to assist in streamlining their Chi...
Case Study 3
One of Klako Group's recent projects was to identify
suitable distributors in the Shanghai area for a large
G...
Case Study 4
A US manufacturer eager to enter the China market
was very pleased with Klako Group's Trade Fair
Assistance S...
Case Study 5
When a Spanish manufacturer considered entering the Chinese
Market for distribution, the company's marketing ...
Questions
Q: When Klako was formed?
A: Please visit www.klako.com
Q: Can investment be attracted to Pakistan?
A: Investmen...
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Klako & China

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Klako & China

  1. 1. Klako & China 5 Case Studies
  2. 2. 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.
  3. 3. 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 place.
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. Questions 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 missing. 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

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