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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...
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on Friday, 21 November 2014
in Business in China

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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
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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.

Operating and promoting foreign company's internet presence and activities in the Chinese web

Posted by PTL Group
PTL Group
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on Tuesday, 22 July 2014
in Business in China

Helen Doron & PTL Group

30 years ago Linguist Helen Doron developed a method for teaching English as a foreign language to young kids, a method that imitates the way in which babies learn their mother tongue. Today, Helen Doron English is an international franchise network in over 30 countries, and has recently expanded into China becoming one of our clients.

In China, Helen Doron English currently operates a total of 18 learning centers in nine different cities. Fortunately, the chain continues to expand and grow in China, mainly due to their executive's large scale and long term strategic attitude. In this context, one of their decisions was to choose PTL Group's local operational management services to support their growing portfolio of English learning centers.

The PTL Group marketing department is operating and promoting the Helen Doron presence and activities on the Chinese web. A conversation with Sara Song, PTL Group's project manager of Helen Doron's online marketing, clarifies how this service model works:

R&D Centers and Incubators and as a Growth Model for Israeli Companies in China

Posted by PTL Group
PTL Group
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on Monday, 21 July 2014
in Business in China

PTL Group was invited to take part in the first meeting held between the Task Force for China's affairs in the Israeli Ministry of Economics, and a working team for high-tech interests which represents the Chinese government.


How do you benefit from the knowledge accumulated by Israeli companies and Chinese elements in order to promote the activity of Israeli companies in China? That was the main question of a special seminar that was held recently in Tel Aviv.  Among this question and other things, also examined were models of incubators and R&D centers suited for Israeli companies in China.

That was the first meeting between the Task Force for China's Affairs in the Israeli Ministry of Economics led by Chief Scientist Avi Hasson, and a working team for high-tech interests representing the Chinese's government and led by Ren Zhiwu, deputy director-general of the High-tech Industry Department of the NDRC (National Development and Reform Commission). The Chinese delegation included representatives from the local industry and the four industrial parks which were chosen by the Chinese government for the issue of cooperation with Israel.

A cooperative agreement signed between the Israeli and Chinese governments will help support Israeli companies

Posted by PTL Group
PTL Group
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on Monday, 14 July 2014
in Business in China

In the last five years, we have witnessed the buildup of an Israeli cooperation with the city of Changzhou, Jiangsu Province. PTL Group, which stands behind various Israeli projects in the city, is one of the major driving forces in this buildup.

The agreement, which was signed between the Israeli Office of the Chief Scientist, the Chinese Ministry of Science and Technology and the Science and Technology Department of Jiangsu Province, addresses the cooperation with Jiangsu Province and Changzhou's Innovation Park. Changzhou, which is 50 minutes by high-speed train to Shanghai, is regarded as one of the major cities in China for business activities of Israeli technological companies in the country.

According to this agreement, Israeli companies can benefit from a comprehensive support package, which include bonuses and extenuations above and beyond what was set as standard in similar agreements. This bonus package includes, among other things, tax reductions, unique grants that help to accelerate the start up stage, specific loans and incentives in order to attract more Israeli industrial companies to the park. Israeli companies that operate in the medical sector will benefit from additional assistance in order to obtain the necessary permissions from the CFDA (Chinese Food and Drug Administration).