China Healthcare & Life Sciences Roadshow June-July 2015 Opportunities, Challenges and Solutions ...
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Transcript of China Healthcare & Life Sciences Roadshow June-July 2015 Opportunities, Challenges and Solutions ...
China Healthcare & Life Sciences Roadshow June-July 2015
Opportunities, Challenges and Solutions
www.cbbc.org 建议 Advice Ι 支持 Support Ι 网络 Networking
Chris CottonDirectorChina-Britain Business Council
• China today – what does it mean for your business?
• Opportunities
• Challenges
• Support & Services
Today’s Event
• Healthcare & Life Sciences• Food quality• Education and training
• Pollution• Renewable energy • Environment & green-technology
• Advanced manufacturing• Monitoring, measuring, safety• Research and development
• Retail and consumer markets• Luxury markets• China outbound
China: New Opportunities…
“Let’s first become friends, then do business”
- Finding the right partners & intermediaries
- Spend plenty of time building ‘guanxi’
- Meet Government officials & trade associations
- Get good advice & support
Developing Business Relationships
Business Culture
‘I think people in the UK have a very different way of doing business with Chinese people. My boss in the UK and the Chinese partners, they tend to do the business in their own way, so
conflict can happen.’
Chinese manager, UK manufacturer of storage products
‘So the Chinese customer will first build trust with you. They will trust you and then they will do business. China is quite different - building up a relationship is really, really important.’
Chinese manager, UK luxury product company
- Chinese business culture can be different to the West.
- Take advice – there is a lot of help available.
Business Challenges
Competition
‘The Chinese market looks to be the most competitive market that we’ve entered. I think every manufacturer in the world has entered the market.’
Managing director, UK company
‘The local competitors, their products are at a much lower price and the quality is OK but not that good. But their pricing is much, much lower. So, it's a market
full of competition.’
Chinese manager, equipment manufacturer
- It is critical to understand your USPs and then articulate and present them clearly – in Chinese.
Business Challenges
Meeting & Negotiating with Partners
Meetings Negotiations
• Prepare company introduction (including Chinese version). PPT/PDF
• Case studies (ideally in China/Asia)• Clear value proposition / competitive
advantages (USP)• Take own interpreter• Meet at their location• Gifts – a token only• Take a long-term view
• Be clear on objectives in advance• Socialising as part of negotiating process• Ensure dealing with main decision-maker• Allow ‘wriggle room’ for price discount• Patience – allow for multiple rounds of
negotiation• Will they support you in securing product
approvals?• Contracts often expected to have flexibility• Make sure you can resource & support what
you set up
Managing & Motivating Partners
1. Set Clear Ground Rules• Take legal advice • Contracts or MoUs• Highlight the responsibilities of both parties.
2. Provide Incentives• Realistic & achievable sales targets• Company and individual incentives
3. Support Your Partners
• Education & training• Regular communication• Long-term commitment• Technical support, marketing literature, digital
4. Invest In the Relationship• Regular visits (two way)• Make effort to understand local market environment• Be patient
5. Deal with Disputes in the Right Way
• Try to anticipate• Cultural understanding & sensitivity• Face-to-face
Intellectual Property
‘We’d had the experience of a Chinese customer copying one of our dryers. They did not do it very well, so they ordered some more from us! But to make a
sweeping generalisation, the Chinese do have a reputation for not respecting intellectual property as much as other people. So these were, and still are,
significant challenges to us.’
UK manager, equipment manufacturer
- Have an IP strategy
Business Challenges
• What is your real IP? Focus on this.
• Can you register your IP (patents, copyright, trademarks)?
• Saving money now may prove to be expensive later.
• Take practical steps:
• What and when do you disclose?• Choose your partners carefully• Put agreements in place• Keep something back• Know what is going on
What’s an IP Strategy..?
Contact details:British Embassy 11 Guanghua Lu Beijing 100200
Tel: +86 10 5192 4495
email: [email protected]
• Do your research - are you right for China / is China right for you…?
• Focus
• Local partners, build relationships & guanxi
• Visit regularly, invest in building your credentials
• Get good advice
• Be flexible & adapt to local needs
• Be patient….
In China…
Last year the CBBC network handled over 11,000 serious interactions / engagements….
….from multinationals to micro-companies and artisans…
…across all business sectors
“Overall, it was a very professional service, which helped us to understand the Chinese market, and has provided us with a great starting point to move forwards in a country that could, in time, potentially dwarf some of our most successful existing markets. Our next steps regarding China are to work on the IP and medical device registration.”
“Let me take the opportunity to express our appreciation for all your support. It was an efficient and good visit with many leads we will pick up.”
伦敦国王学院
CBBC’s aim :
To support UK companies and organisations to enter, develop and grow their business in the Chinese market.
• Works closely with FCO & UKTI teams in UK and China
• Research, meeting arrangements, partner identification (OMIS)
• Business strategy, cultural briefings, workshops
• Inward and outward visits
• Set-up advice and services
• Incubator – your person in China
• Translation and interpreting
• Membership services
What CBBC does:
Shanghai
Shenzhen
Guangzhou
Beijing
Chengdu
Hangzhou
Nanjing
Chongqing
Your on-the-ground local expertise
Shenyang
Wuhan
Changsha
Xi’an
- 120+ staff in 13 offices
- Working to help 100s of UK companies each
year
Qingdao
CBBC in China
CBBC services include:
Market Research - Via the Overseas market Introduction Service (OMIS)Visa Invitation Service - CBBC can secure a visa notification form which will enable you to apply for a Business
Visa for entry into China.Translation & Interpreting Services - Documents, Company Profiles and Business Cards can all be translated
into Chinese through this service and we will also arrange qualified interpreters for companies visiting China.
CBBC Hot DeskLaunchpad® - A flexible, fast, cost-effective and low risk means for you to explore the opportunities across
China working from CBBC offices.CBBC Employment Services - Helping you plan for and identify key management staff for your business in
China. Includes both a selection and advisory service.Chinese Business Culture Training Programme - Provides your team with an awareness of Chinese culture
and guidance on how misunderstandings can arise and be overcome. Company Check Services - CBBC can carry out a company check on your behalf through the local branch of
SAIC (State Administration of Industry and Commerce). This will provide basic key information about a company.
Request for Proposal Service - Links the professional service requirements of CBBC members – for example, incorporation, sourcing, IP registration, employment contracts, tax structuring, event management etc - to the offerings of CBBC’s professional service provider members – for example, legal firms, taxation advisers, consultants, event management specialists etc.
• Support services, translation, and interpretation
Pre-entry
Understanding potential China-market opportunities
• Information Centre
• Pre-market advisory and consultation
• Bespoke market research
• Trade mission or visit support
• Business opportunities
• Membership directory and ‘sign posting’
• Business events, seminars,
During the market entry process
Identifying and addressing specific China-market opportunities
• Incorporation services
• In-China recruitment support
• Localisation studies
• Membership helpline
• Access to business opportunities
• Launchpad ™ in 13 offices
• Hotdesks in 13 offices
• Networking
Ongoing support
Developing and expanding in China
• Sector and Business Support
• Government Access & Relations
• Lobbying
• Business Opportunities
• Regional cities visits and access
• Leveraging network of 13 offices
• Tailored events
• British Business Centres
Services and Support
Overseas Market Introduction Service (OMIS) delivered in China on behalf of UK Trade & Investment
• China is maturing and changing
• Many opportunities to sell – but need to be aware of the current situation for your products/services
• CBBC & UKTI collate and publish ‘00s of business opportunities
• Doing business in China is different:
– Relationships critical
– Unforgiving on assumptions
– Be there for the long run – not “quick win” territory
– Patience required
– Need to keep “finger on the pulse”
• CBBC can help in a number of ways:– Advice – Identifying Partners – Ongoing Support
To Summarise…..
Chris CottonDirectorChina-Britain Business Council
Email: [email protected]: www.cbbc.org
Contact details