CBBC - Exporting to the Chinese ‘Silver Consumer’

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Transcript of CBBC - Exporting to the Chinese ‘Silver Consumer’

  • Doing Business In China

    www.cbbc.org Advice Support Networking

    28th April, 2016

    Mark Hedley China-Britain Business Council

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    Chinas Transformation

    Shanghai 1990

    Shanghai 2010

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    China Macro Picture

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    China United Kingdom United States

    2nd largest global economy ($11.212 trillion) 7% GDP growth target (2015)

    75th by GDP per capita ($8,154)

    China Vs UK & US GDP (1979 2014)

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  • UK Exports to China

    Exports valued at 14 billion in 2014 and now accounting for 3.2% of goods UK exports

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    Chinese Investment In UK

    18 Bn Chinese investment in UK (2013-2014)

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    The New Normal

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    Chinas Rebalancing

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  • Long-term Policy & Planning

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    Sector Opportunities

    Healthcare ICT Energy,

    Environment & Infrastructure

    Retail & Consumer

    Advanced Manufacturing

    Financial & Professional

    Services

    Automotive & Transportation

    Creative Industries

    Luxury Food & Drink E-Commerce

    Smart Transport Intelligent Vehicles Railway equipment

    Aerospace Automotive Transport Robotics

    Telecommunications Smart Cities Internet of Things

    Life Sciences Digital Health Elderly Care

    Eco-cities Smart Energy Cleantech

    Banking Insurance Fintech

    Film Music Gaming/Apps

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  • Urbanisation

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    The Chinese Consumer

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    Digital China

    688 Internet Users

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  • China has the largest elderly population in the world with 194 million people, or 14.3% of the total population aged above 60 at the end of

    2012 and over 300 million estimated by 2024.

    Chinas Ageing Population

  • Health Stats

    3 million newly

    diagnosed cancer

    patients

    2.2 million cancer deaths (27% of global

    total)

    230 million cardiovascular

    disease sufferers

    114 million adult diabetes

    sufferers

    Obesity rate of 5% (but 8%

    for urban children!)

    1.2 million deaths per year due to

    pollution

  • Elderly Health Stats

  • Healthcare Spending

  • Policies 2009 Healthcare Reform Plan - 850 billion ($124 billion) investment to extend

    basic healthcare access to 95% of Chinas 1.3 billion people

    The National Planning Guideline for the Healthcare Service System (20152020)

    Healthcare Sector Reforms

    Key Government Departments State Council National Development and Reform Commission (NDRC) Ministry of Health (MOH) Regional Governments

    Number of hospital beds for every 1,000 people

    Public hospitals Private hospitals

    Current3 By 2020 Current By 2020

    4.55 6 0.52 1.5

  • Opportunities

    Elderly consumers account for 45 billion of Chinas 65 billion pharmaceuticals market

    Elderly nutrition and health food products market predicted to be worth 125 billion by 2020.

    52 million internet users over the age of 50. Growing market for digital tech

    The Chinese medical device market valued at 27 billion, growth driven by ageing society

    Growing market for insurance, pension, housing/ care homes, travel, leisure & entertainment

  • Digital Health

    Transformative

    health technologies

    Electronic records

    Telemedicine,

    Telehealth

    Big data

    Hospital Solutions Elderly & Social Care Training & Education

    Turn-key hospital

    solutions

    UK-based care

    Professional

    services

    Operations

    Licensing and

    franchising

    Design and

    planning

    Operations

    Management

    Residential /

    community /

    domiciliary care

    Bespoke Care -

    dementia

    UK-based

    New schools in

    China

    Hospital-to-Hospital

    Online courses

    Train the Trainer

    Healthcare / Life Sciences Opportunities

    Pharma

    Drug Production

    Drug R&D for

    discovery /

    development

    Medical Tech Genomics

    IVD

    Devices, Disposables

    Specialist Turn-Key

    Installation Packages

    Gene Sequencing

    Technology

    Stem cell

    Regenerative

    Medicine

    R&D

    Contracted Research

    JV Partnerships

    Experimental and

    clinical trials

  • Business Challenges - Regional Diversity

  • Navigating Government

    City and Town Offices

    Small City and Town Policy - 2,000+ Small Cities and Towns

    Prefecture Level City Bureaux

    City Policy - 287 Prefectural Level Cities

    Provincial Departments

    Provincial Policy - Provincial Capitals

    Government Ministries

    National Policy - Beijing

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    Setting Up in China

    Appoint an Agent or Distributor

    Establish a local presence

    o Representative office

    o Wholly Foreign owned enterprise (WFOE)

    o Licensee

    o JV

    o Sell direct (online presence)

    o Other Launchpad

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  • Regulatory IPR

    Due Diligence Getting Paid

    Tax Planning HR & Staffing

    Corruption Bureaucracy

    Competition Funding

    Practical Challenges

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    Understanding the Market

    Limited availability of reliable market data/insights

    Market size and complexity many markets and sub-markets

    Free resources UKTI, CBBC, EU SME Centre, MOFCOM, National Bureau of Statistics, published reports (McKinsey, PwC Etc.)

    3rd party research agencies (bespoke research)

    Trade missions (UKTI, CBBC, Trade Associations)

    Overseas Market Introduction Service (OMIS)

    Things to research: market size & structure, location of industry, regulatory barriers, regional trends, consumer preferences, routes-to-market

    Are you ready for the market; and is the market ready for you?

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    Chinese Culture

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    Key Concepts

    Confucianism Guanxi Face

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    Chinese Business Culture

    Meetings & Negotiations

    Giftgiving

    Banqueting

    Business Cards

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    China-Britain Business Council (CBBC)

    The leading organisation helping UK companies do business in China

    Established 1954

    Membership organisation, with over 1,000 members

    Network of 23 offices across China and the UK

    130 staff, including 92 based in China

    Advice, Support & Networking

    Serving companies of all sizes in all industry sectors

    Merged with British Chamber of Commerce in Beijing

    UKTI strategic partner

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    Q&A

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    Thank You!

    E: mark.hedley@cbbc.org

    T: 020 7802 2000

    http://www.cbbc.orghttp://www.cbbc.orghttp://www.cbbc.orghttp://www.cbbc.orgmailto:mark.hedley@cbbc.org