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Uncertainties in China- Dream Big or Be Averse to Risk

Posted by Vincent Hu
Vincent Hu
Vincent has over 10 years of management experience in leadership positions of logistic companies. He has an en...
User is currently offline
on Sunday, 04 January 2015
in Business in China


The concept of “Uncertainties in China” from a business perspective can reflect on uncertainties in several fields, including unpredictable government policy changes, dictatorship of the legislation system, business ethic problems, huge increasingly wealthy population with dramatically rapid consuming trend changes and rocketing e-commerce and social media adoption happening in China. This article mainly focuses on macro-economy trend and SMEs’ market entry strategies.

China GDP Exceeds USA?

Recently, a popular topic is how soon the GDP of China will exceed that of the US. Some analysts even assert that the real GDP of China has closed to or equated with that of the US. The achievement of GDP growth of China was amazing in these past twenty years, so does the discussion about the GDP surpassing expectation prove the China market would keep growing and be a wonderful place to do business? Following MNCs, should SMEs dream big and head towards the China market?

Hosting a website in China – what’s behind the great wall?

Posted by Gloria Poelz
Gloria Poelz
Marketing Assistant at PTL Group
User is currently offline
on Wednesday, 24 December 2014
in Business in China

 

In China a website that is hosted locally actually loads quicker than one hosted in a different country. This is because data from abroad needs to penetrate China’s great firewall which might cause such a website to load a few seconds longer. In rare cases it could even happen that a foreign page cannot be opened at all. While this might not be a serious issue for certain businesses it can become a severe competitive disadvantage for content intensive websites such as online stores, where consumers expect to be able to quickly navigate from one product to the next. So why does not everybody just host their website in China?

ChAFTA - The Main Changes

Posted by Josh Morrison
Josh Morrison
Intern at PTL Group
User is currently offline
on Thursday, 27 November 2014
in Business in China

The much anticipated China Australia Free Trade Agreement (ChAFTA) has been signed on 20th November 2014. ChAFTA secures Australia's competitive position with its largest trading partner and lays the foundation for a deeper and stronger long-term strategic partnership.  ChAFTA was also the main point of conversation in the business tour our VP of Sales & Marketing - Arie Schreier - just completed in Australia. The focus was on materializing the benefits of this agreement. Here we list a few of the industries of our interest - Agriculture, Raw Materials, Investment, Trade in Services and Financial Services.

Distributor or Fulfillment Agent? A Tough Choice for Selling in China

Posted by Vincent Hu
Vincent Hu
Vincent has over 10 years of management experience in leadership positions of logistic companies. He has an en...
User is currently offline
on Friday, 21 November 2014
in Business in China

Image source: www.nutritionaloutlook.com


The Easiest Way Doesn't Work

The easiest way to sell in China would be to find a reliable and capable distributor who just buys products and immediately pays revenues.

This easy way faces many challenges, which may lead to companies losing the opportunity to grow their sales in China and end up completely losing market share. In Mainland, the market is separated in many small units rather than a huge integrated market place. The attribute of “Guanxi” in Chinese society also hinders a distributor’s access to all channels. A distributor with roots in Southern China would have very limited or even no presence in Northern China (e-commerce would be an exception). And so, to cover as many regions as possible and diversify channels, the investor should choose several distributors rather than an exclusive one who just covers a limited region or channel. However, once the foreign company starts negotiation with several distributors, the main handicap faced is aligning interest among distributors. Who doesn't want to be exclusive? Sharing the cake might get distributors to look for short-term benefits rather than long-term growth.

Capturing A Billion Customers: The Sales Incubation Model in China

Posted by Michael Wilder
Michael Wilder
Michael Wilder has not set their biography yet
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on Monday, 17 November 2014
in Business in China

Not to Be Ignored

As most in the business world would agree, China is one of the most competitive markets on the planet for local and foreign companies alike. In many ways, the country’s economic policies, Five Year Plans and overall top-down leadership out of Beijing are hugely competitive with its counterparts in the West – and in ways, even more forward thinking and innovative. Whether we fear it, hate it or are indifferent to the rise of China, surely those in the global business community would agree that we cannot afford to ignore this ancient culture and increasingly influential super power.