Brief China To Customer


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Charmer Business Consulting & Marketing Research
Brief China to Person Who Cares about It :
Economy, Society, Diplomatism, Customer

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  • Beijing: Shanghai:
  • Great Wall
  • 京派、海派
  • mascot
  • Brief China To Customer

    1. 1. An overview of Chinese Prepared by: Wally Date : 03/02/08 Charmer Business Consulting
    2. 2. China has 56 ethnic groups, including Han and 55 minorities.
    3. 3. Minorities own rich artistic culture. Battik Wood mask Sculpture Shadow stone carving
    4. 4. Minorities culture also offers business opportunity. (an example of room decoration)
    5. 5. Bright side: Some examples of Chinese active abroad
    6. 6. Bright side: Achievements gained by Chinese. Tianqiao Chen, one of the richest Chinese at 32, is credited with creating China's online game industry. Liwei Yang, the first Chinese blasted into space.
    7. 7. Bright side: Prosperous metropolitan life
    8. 8. Summary <ul><li>We are proud of our enriched multinational culture. </li></ul><ul><li>Like any other country, China is not perfect. </li></ul><ul><li>China is entering into the international stage with a dynamic power. </li></ul>
    9. 9. Beijing and Shanghai at a Glance -What you may not know yet
    10. 10. The Origins <ul><li>Beijing (北京) </li></ul><ul><ul><li>Date: 770 BC to 476 BC </li></ul></ul><ul><ul><li>Name: (蓟, ji ) </li></ul></ul><ul><li>Shanghai (上海) </li></ul><ul><ul><li>Date: Around the 5th century </li></ul></ul><ul><ul><li>Name: (沪,扈, hu ) </li></ul></ul><ul><li>What happened in West at that time? </li></ul><ul><ul><li>The first recorded Olympic game – 776 BC </li></ul></ul><ul><ul><li>Fall of Western Roman Empire – 5th century </li></ul></ul>
    11. 11. Food – Beijing <ul><li>Beijing Duck </li></ul><ul><li>Beijing Noodle (with meat sauce) </li></ul>
    12. 12. Food - Shanghai <ul><li>Shanghai Crab </li></ul><ul><li>Shanghai Wonton </li></ul>
    13. 13. Housing - Beijing <ul><li>Beijing Courtyard </li></ul>
    14. 14. Housing - Shanghai <ul><li>Shanghai Shikumen </li></ul>
    15. 15. Bars - Beijing <ul><li>Hou Hai </li></ul><ul><li>San Li Tun </li></ul><ul><li>Chao Yang </li></ul>
    16. 16. Bars - Shanghai <ul><li>Xin Tian Di </li></ul>
    17. 17. What are happening <ul><li>Beijing </li></ul><ul><ul><li>2008 Olympic Games </li></ul></ul><ul><li>Shanghai </li></ul><ul><ul><li>2010 World Expo </li></ul></ul>
    18. 18. Q&A Fish Antelope Flame Panda Swallow
    19. 19. China’s Economy  An emerging power
    20. 20. A Mixed View
    21. 21. Quickening Pace
    22. 22. Facts <ul><li>China’s GDP increased from $1.1 trillion to $1. 82 trillion from 2000 to 2006 </li></ul><ul><li>China's foreign-exchange reserves jumped more than $200 billion in 2006 to reach $1066.3 billion </li></ul><ul><li>China has about $1 trillion in personal savings and a saving rate of close to 50%. </li></ul><ul><li>China has 10 billionaires, up from 3 last year. The 40-richest people are worth a collective $26 billion, up from $18 billion last year. </li></ul>
    23. 23. Regional Development
    24. 24. Economic Powerhouse Regions <ul><li>Three Delta Regions </li></ul><ul><ul><ul><li>Bohai Sea Economical Circle </li></ul></ul></ul><ul><ul><ul><li>Yangtze River Delta </li></ul></ul></ul><ul><ul><ul><li>Pearl River Delta </li></ul></ul></ul>
    25. 25. Northeast and Northwest China <ul><li>Northeast China Revitalization </li></ul><ul><li>West China Development </li></ul><ul><li>12 provinces participation </li></ul>
    26. 26. Business Opportunities in China -Vertical Industries
    27. 27. Purchasing power is growing
    28. 28. Common Infrastructure Investment Demand 100 Manufacturer, Investor Boeing, Airbus, GM, Chrysler, Toyota, Honda, Volkswagen, Siemens Airlines, Railway, Super Highway, Automobile Transportation 80 Equipment Provider, Local Manufacturer Investor Motorola, Nokia, Cisco, Ericsson, Qualcomm, Siemens GSM/CDMA, 3G, Cell Phone, Internet Telecom 150 Exploitation, Gas Stations, Chemicals, Investor Exxon, Shell, BP Crude Oil, Coal, LNG, Electricity Energy Market ($Billion) Roles Key Int’l Players Highlights
    29. 29. Investing in China is profitable <ul><li>Workforce: local and returnees </li></ul><ul><li>Environment: </li></ul><ul><ul><li>WTO and government policies </li></ul></ul><ul><ul><li>Stable business environment </li></ul></ul><ul><li>Result: </li></ul>
    30. 30. <ul><li>Foreign VCs: 70% funding </li></ul><ul><li>more early state </li></ul><ul><li>Main sector: IT with semi-conductor (400M) </li></ul><ul><li>Main regions </li></ul>Venture Capital in China
    31. 31. <ul><li>Huge Market: </li></ul><ul><ul><li>Niche / Emulating </li></ul></ul><ul><ul><li>high growth / best management </li></ul></ul><ul><li>Clear exit route </li></ul><ul><ul><li>Market leaders - IPO, followers - acquired </li></ul></ul><ul><ul><li>24 VC-backed IPO in 2004, 4.3 billions </li></ul></ul><ul><ul><li>; Baidu; Shanda; Linktone </li></ul></ul>VC: Invest and Exit
    32. 32. Financial Market in China <ul><li>Banking </li></ul><ul><ul><li>system </li></ul></ul><ul><ul><li>Foreign investment </li></ul></ul><ul><ul><li>New opportunities: Electronic / data / credit system </li></ul></ul><ul><ul><li>Financial IT: 3.3 billion </li></ul></ul><ul><li>Securities market, QFII </li></ul><ul><ul><li>- Goldman, Citi, JPM, CSFB, UBS, ML </li></ul></ul>
    33. 33. Practical Tips <ul><li>Understand the market </li></ul><ul><ul><li>Visit China </li></ul></ul><ul><ul><li>Know and sell the demands </li></ul></ul><ul><ul><li>Localize your products </li></ul></ul><ul><ul><li>Conduct due diligence and research </li></ul></ul><ul><ul><li>Find a strong and experienced partner </li></ul></ul><ul><li>Manage realistic expectations </li></ul><ul><ul><li>Have a long-term strategy </li></ul></ul><ul><ul><li>Have an “exit” plan </li></ul></ul>
    34. 34. Negotiating with Chinese Company
    35. 35. Decision Making Procedure <ul><li>A typical Chinese company can have very different organizing structure, positions and titles from a western company </li></ul><ul><li>Not always the one with higher title holds real power </li></ul>
    36. 36. Pace of Decision making <ul><li>Western companies: deadline-driven; rapid decision </li></ul><ul><li>Chinese companies: the pace can be fast and slow simultaneously </li></ul>
    37. 37. When “Yes” Means “No” <ul><li>Chinese people and western people have different ways to express opinion </li></ul><ul><li>Negative replies are considered impolite. “No big problem” usually means “there are still problems” </li></ul>American Way Chinese Way
    38. 38. The Role of Guanxi <ul><li>Guanxi=“Network” in Chinese way </li></ul><ul><li>Guanxi can help you to get more opportunity to present your company and your products. </li></ul>
    39. 39. Business courtesy <ul><li>Greeting: </li></ul><ul><li>- Handshaking (formal) </li></ul><ul><li>- Nod and smile (informal) </li></ul>
    40. 40. Business Courtesy <ul><li>Addressing </li></ul><ul><li>- Family name + Given name </li></ul><ul><li>- Only family members or close friends use first names </li></ul><ul><li>- A married Chinese woman usually retains her maiden name </li></ul>
    41. 41. Business Courtesy <ul><li>Business card: two hands </li></ul>
    42. 42. Summary <ul><li>China has different culture background and different economic system </li></ul><ul><li>Do in Rome as Rome does </li></ul>
    43. 43. China and U.S. mutually beneficial partners
    44. 44. Two countries behind numbers
    45. 45. Two countries behind numbers (continued) <ul><li>China has $1 trillion in personal saving and a saving rate close to 50%. The US has about $158 billion and saving rate of 2% </li></ul><ul><li>Shanghai has 4,000 skyscrapers-double the number in NYC. Still 17% of the entire Chinese live on $1 a day. </li></ul><ul><li>China has 100 million internet users (second to U.S.’s 135 million) and 300 million cell phone subscribers. </li></ul>
    46. 46. China as the word’s workshop <ul><li>2/3 of all photocopiers, microwaves, DVD players and shoes </li></ul><ul><li>½ of all digital cameras </li></ul><ul><li>2/5 of all personal computers </li></ul><ul><li>1/5 of all clothing </li></ul>
    47. 47. <ul><li>Apex Company was founded in 1997 when a DVD player sold for around $1000. </li></ul><ul><li>I bought my Apex® DVD player at Wal-Mart in Wisconsin in 2001 for $50. </li></ul><ul><li>You bet they made every unit in China. </li></ul><ul><li>DVD becomes household product because of such players. </li></ul>Myth: = + Support: China to Wal-Mart: $18 billion/year. $60 per person in U.S. A True Example:
    48. 48. The Google guy in China
    49. 49. The 100 million dollar man
    50. 50. Happily ever after for in China <ul><li>11/12/1987, first ever western fast food restaurant was opened in mainland China. </li></ul><ul><li>In 2002, KFC opened the first-ever drive-thru restaurant in China. </li></ul><ul><li>In 2004, operating profits for the China Division were more than $200 million and up over 20 percent. </li></ul>350% 1400 400 China 1% 5,525 5,364 U.S. 5 year growth Store number 2005 Store numbers 2000
    51. 51. Summary <ul><li>China is now the third-largest trading partner for the United States (after Canada and Mexico). </li></ul><ul><li>A Rising China provides challenges and endless opportunities for China and U.S., economically and politically. </li></ul><ul><li>The best is yet to come. </li></ul>
    52. 52. Welcome to China