Go Global Talk China by Andrew Wong


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Go Global Talk China by Andrew Wong

  1. 1. Go Global Talk - China Do’s and Don’ts In Doing Business In China Andrew Wong CEO MAD Incubator
  2. 2. About Me • Entrepreneur • CEO and Founder, MAD Inc • CEO, MCA Innovation Resource Centre • President of National Incubator Network Association (NINA) • Council member of the Asia Association of Business Incubator (AABI) • Council member, Working committee – JTPIN, MOSTI
  3. 3. Facts About China  Population: 1.3 billion  World’s 2nd largest economy after United States of America  Major industries – mining and ore processing, machine building, armaments, building materials, consumer products, food processing, transportation equipments and telecommunications equipments  Major imports – electrical and other machinery, oil and mineral fuels, optical and medical equipments, metal ores, plastics, organic chemicals  GDP/GDP per-capital – US$8.789 trillion/US$6,600  Per-capita disposable income of urban residents – RMB 17,175 (2009)
  4. 4. Opportunities in China Automotive Industry Clean Energy Education and Training Healthcare Water and Waste Water Treatment Green Building Consumer Products Food Products
  5. 5. Doing Business In China  Challenging market  Market Entry Strategy  3 forms of market entry – import/export, representative office and locally incorporated entity (wholly owned or JV)  Understand the location and potential market  Understand the governing laws of the country (reference: Chinese Embassy or MATRADE)  Selling your products and services in China  Highly protective market  Must meet regulatory requirements  Establishing an Office in China  Must be willing to spend around US$50,000 to US$500,000  Bulk of cost is office rental and expatriate package
  6. 6. Doing Business In China  Selling techniques  ‘Guanxi’  Localised support  Should use local representatives  Promotion  Trade shows  Pricing  Price sensitive  Brand conscious
  7. 7. Common Business Etiquette • Do’s – Take your own interpreter – First impression is important – Show some respect – Make bilingual business card – Present your card with both hands – Respect the culture on hierarchy • Don’ts – Jump in the conversation – Cause embarrassment or loss of composure – Assume that a nod is a sign of agreement – Use direct negative replies
  8. 8. Business Etiquette – Business Meals • Do’s – Lunches and dinners are popular – Please eat what they serve – Wait for your Chinese counterpart to initiate formal greetings • Don’ts – Have business talk on breakfast – Begin eating or drinking before the host
  9. 9. Business Etiqutte – Public Behavior • Do’s – Addressed with their official title and name – Shake hands when first meet • Don’ts – Attempt any intimate contact such as hugs or kisses on the cheeks
  10. 10. NINA-STIC Market Access Centre Objectives 1. To encourage small and medium technology companies to locate at Shanghai and Kuala Lumpur 2. Promote international market access 3. Inculcate creativity and innovation among Malaysian and China technology companies 4. Promote business collaboration and partnerships 5. To provide low cost market entry into respective markets
  11. 11. NINA-STIC Market Access Centre Program 1. Business coaching and mentoring 2. Linkages and Relationships 3. Shared Facilities, Services and Human Resources 4. Market Access – Business Matchmaking, Market Intelligence 5. Financial Access – Investors Contact, Government Grants 6. Statutory/Legal Assistance – Company Incorporation, Immigration, Govt Regulations 7. Relocation Assistance – Housing, Cultural Training, Translators, Visa etc 8. Technology/Technical Collaboration 9. Joint Reciprocal Study Tours – Information Gathering and market exploration 10. Information Briefing To Improve International Export Capabilities – Culture, Product, Market Intelligence, R&D, Partnerships 11. Creation of Alumni between entrepreneurs from NINA and Shanghai
  12. 12. Proposed Programs Entrepreneur Xchange Working Visit • Market study tours • Market briefing sessions (Shanghai/KL) Market Exploration Program • Temporary office (2 weeks – 1 month) • Market assistance • Network and regulatory assistance • Information briefing on operational, culture, product, market, R&D and partnership. Market Access Center • Long term program (6 months – 1 year) • Office facilities • Shared facilities, services and human resources • Coaching and Mentoring • Statutory/Legal assistance • Business support • Marketing assistance • Financial access • Relocation assistance • Technology and technical collaboration
  13. 13. Program Details Entrepreneur Xchange Working Visit Market Exploration Program Market Access Centre • Participating organizations to cover transportation, food and lodging costs. • Host country to facilitate and organize networking/business matching sessions and logistics for study tours • Participating organizations to bear cost of transportation, accommodation • Host Incubators to provide services free of charge • Participating organizations to be located at Host Incubator between 2 weeks – 1 mth • Participating organizations to be located at Host Incubator between 6 months – 1 year • Incubation services to be rendered at the lowest cost.
  14. 14. STIC Incubation Services Project applicationTraining service: CTO training Core MBA Consulting services Law,HR,IPR Physical facilities Financing VC,bank loan Marketing exploration& networking services
  15. 15. Anticipated Outcomes 1. We foresee more successful collaboration between Chinese and Malaysian companies in respective markets 2. Successful development of companies in Chinese and Malaysian/ASEAN markets in a facilitated environment 3. Enter China/Malaysia through existing market networks
  16. 16. Key Questions to Answer • Identify your market – Customer segment – Customer value proposition – Product that you want to sell • Know the business environment of the location you want to do business in • What will be your organization structure? • Know your partners. Appoint the right agents • Be thorough with your plan of action • Know your marketing strategies • Have adequate capital and be ready for the long haul • Use soft landing zones to reduce cost of market penetration
  17. 17. Andrew TF Wong Tel: 016 3438802 Email: andwtf@incubator.com.my Twitter: madincubator Facebook: andwtf Facebook: Mad Incubator