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Go China! - Zvi Shalgo


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Go China! - Zvi Shalgo

  1. 1. More than Management ™Competitive business models in the Chinese MarketZvi Shalgo – CEO, PTL GroupMarch 20th 2013
  2. 2. China Economy forecast
  3. 3. Higher Labor Cost China employee monthly salary
  4. 4. The number of Chinese Internet users is increasing at a dramatic pace — over 2100% in thelast 12 years. Internet Users in ChinaSource: Social Times
  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. Online Sales in ChinaSource: Social Times
  6. 6. Chinese Domestic Market Forces  FIE’s focus has shifted from top tier clients to the fast growing and extremely competitive mid-market.  Selling “advanced technology” and “European quality” alone are not enough to sustain a marketing advantage.  The Chinese Government is supporting chosen local industries financially, technologically and commercially.  Rising operational cost reduces China’s attractiveness as a low cost manufacturing center. Over 70% (AmCham 2011 survey) of manufacturing FIE’s are “made for China”
  7. 7. Chinese Domestic Market Forces Effective Operations and Strategic Investments in support infrastructure has become THE MAIN CHALLENGE in the race towards a competitive
  8. 8. What normally goes wrong during penetration to China?
  9. 9. New Operational Concepts:• Outsourcing key management & operations resources• VC, PE - Getting investment from Chinese-Foreign funds• Working with Chinese local governments to develop new support structures fitting small technology oriented companies• Following up Israel / China governmental support initiatives (“100 Million”, Joint R&D Funds)
  10. 10. Industrial Incubation
  11. 11. Local R&D operation as your foot hold in China  localization of products and knowhow  pre-sale and after-sale focus  investment/cost saving  local supply chain supportSigning Ceremony between Matrix Global and CZ Government
  12. 12. Chinese & Israeli Governments start to develop updated approaches to support technology oriented companies  Local operations are a key to commercial success in China  Local operations are a key for local investment CZ Mayor Yao Xiaodong (right), Chinese Ambassador to Israel Gao Yanping (center) Industry, Trade and Minster Shalom Simhon participated in a ceremony to mark the signing of Matrix Global’ s agreement.
  13. 13. Contact Us: Zvi Shalgo Shanghai Head Office Email: Room 301, 798 ZhaoJiaBang Rd. Shanghai, 200030, P. R. China Mepi Frankel Phone: +86 21 64453190, Fax: +86 21 64453191 Email: www. China • Israel • The Netherlands •
  14. 14. What PTL Group Does? Management Industrial Business Solutions Projects Investment Recovery Operations Management Industrial Turnkey Operational Audits Equity Investments Project Management Distribution Turnaround of Partnering with PE/VC Logistics Industrial Incubation underachieving Warehousing subsidiaries in China Human Resources Financial management Marketing projects``
  15. 15. Some of Our Leading Clients