With 1.4 billion population, having fast growing disposable income and thirst for spending, China represents an economic powerhouse with the world’s largest integrated market built upon a low cost manufacturing ground. China’s educated, skilled and dedicated work force with low wage makes “Made in China” products competitve in the world market. All these explains the average 9% GDP growth in China every year.
However, it is not a market easy to succeed. As China is huge and complex, with very different culture, language and mentality, which are worsened with regional discrepancy, together with the notorious weak IP protection, fickle government, and loose regulation, altogether make it daunting for Western companies to enter, let alone getting “quick wins”.
With native knowledge of Chinese language, China business culture, consumer taste and many years professional experience with Sino-European business, Sykam Solutions is the consulting company well positioned to help Western companies win out in this complex market. Our strong local associates in market research, marketing, legal and finance, and our network with China Ministry are all powerful tools to make the China entry smooth and in control.
How can Sykam Solutions help you for China? - We make sure that NOTHING IS “LOST IN TRANSLATION”.
- Market research. covering industry review, customer segmentation analysis, competition dynamics analysis, regulatory overview
- Company research. Chinese companies all have very complicated organisations, sometimes largely diversified, holding shares in many unrelated subsidiaries and Joint-Ventures. It is well known that Chinese companies’ accounting and operational data are not readily available. Even when published, the data’s accuracy are doubtable. Due dilligence is imperative in China due to the lack of data transparancy that is often assumed by Western business managers. Sykam has the knowledge, tools and associate resources in credit check, law and accountancy to carry out the overall analysis.
- Strategy formulation. Based on data collection and research, Sykam helps you formulate a holistic strategy poignant to your company’s business while pinpointing the best way to penetrate the China market.
- Strategy implementation. We don’t just give you a strategy report and let you go to the market on you own. Instead, we help you implement the strategy with our strong support on all practical sides, including company registration, partner selection and negotiation, to key people recruiting. We also keep refining the strategy and updating the business case throughout implementation to give you real time understanding of what is going on.
- Intellectual Property Protection. Sykam works closely with our partner lawyers in China to analyse your product IP issues, and compose the right protection measure to put into place. Our partner lawyers have deep knowledge of local prosecution process and extensive court experience to assure that your IP right is well protected.
- Marketing and Lobbying. Sykam can help you market your products with the most effective marketing budget and channel. Our network and acquitance with China government will help you lobby the right people and organisation.
- Negotiation support on contracts and trade terms. Our experienced negotiation experts help clients understand Chinese counterparties’ objective, rationale and tactics, within local regulatory context. So they are well-equipped to achieve beneficial terms and win-win situation throughout the negotiation process.
- Cultural preparation and coaching. We help company executives equip themselves with knowledge and understanding of China’s economic, business, political, historical and cultural situation, either to prepare them for their integration to China unit or pre-start up before dealing with China.
- Bespoke China market advisory service. We provide bespoke China advisory service at a retained regular basis. Customised to your needs we offer 1 day per week to 1 day per month information collection and analysis (regarding market, competition, regulation, customer trends), direction recommendation, culture coaching and advisory and any other needs you might come up with. It is a low cost but useful service highly appraised by our clients.
We help you list and answer the following questions:
- Is China for your company?
- Can you increase top line and/or bottom line with China?
- How to fulfil your China project with a clean, efficient and “quick-win” approach?
- How to protect your company against IP infringement?
- How to achieve good business and negotiation results bypassing cultural differences?
- How to gain access to many quality local contacts without China link?
- How to make sure that nothing gets “lost in translation”?
- How to guarantee a firm control of China project?
- How to get accurate, up-to-date reporting to form a decision making basis?
- How to benefit the world top class consulting methodologies and let them work for your China project?
- How to find and retain valuable staff for China operation?
If any of those questions fall into your reminder list, Sykam is there for you with tailored solutions.
Our analysis confirms that from 2001 (joining WTO) China reached a critical stage for Western companies to really benefit from entering the market. After 20 years economic reform, China has evolved from a high poverty, centrally controled economy to a market economy, with more free trade and exchange with the world. The implications for Western businesses are profound. Please see the table below to get an overview of this evolution.
China market evolution table
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* Source: Sykam’s China research report, NSB (China National Statistics Bureau)
This table summarizes the evolution of China’s economy derived from the committed economic reform initiated by Deng Xiao Ping in late 1970’s. It shows that after more than 20 years reform and development, China’s market and businesses have largely improved their credit problems and receivable cycle period, it is more committed to quality and reliability, and pays more respect to IP rights.
As market economy started to take place, capital acumulates, knowledge and experience enriched, together with government encouragement and policy, China started to migrate from low end cheap manufacturing towards high value-added, more R&D oriented production. At the mean time, thousands of excellent domestic companies grow up, with high revenue (many earns hundred billions pounds annual turnover), healthy profit and mind blowing growth rate. Today’s Chinese business leaders put more thinking on capital investment, International Mergers and Acquisitions, High end R&D and globalisation strategy. They are enthusiastic about collaboration with Western companies and to penetrate into the developed countries. IP protection is also strengthend fast in conformation to WTO. As Dr. Bogsch, the former Director-General of the World Intellectual Property Organisation, pointed “China has accomplished all this at a speed unmatched in the history of Intellectual Property protection”.
All these facts give us right to say that from 2000 on is the golden momentum to do business in China. China’s economy is going to hold on high growth rate for the coming 10 to 20 years. As a consulting company with knowledge, competency and experience of this market, we look forward to hearing from you to give you the help and support you need in order to reap the benefit while cutting unnecessary difficulties.
Be inspired by aspirations. Be motivated by visions. Be consulted by Sykam Solutions.
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Sykam Solutions - We bring local knowledge and expertise in China market to your desk.
