Presentation on theme: "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."— Presentation transcript:
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 Cotton Director China-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 MeetingsNegotiations 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: Tom.Duke2@fco.gov.uk Tom.Duke2@fco.gov.uk
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 Desk Launchpad® - 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…..