Implementation and Consulting

Setting Up Business in China

Reasons for creating business in China:

An export or production base for the domestic market
Following key customers to have a local presence
Seizing opportunities in the Chinese market

Preparation is the key to the success. Preparing comprehensive time and cost schedules for both best- and worst-case scenarios is essential. Continuously adjusting and monitoring these schedules will help ensure that your venture in China is a resounding success and doesn't turn into a "bottomless pit".

It is difficult to manage and integrate a company located 8000km ignoring the nature of business. With the cultural differences, trying to simply transfer German or European thinking to Chinese and Chinese employees will lead to failure.

Although risks and challenges are found, the Asia market still offers a wide range of opportunities. Beyond cost advantages, it presents a unique market and the potential for knowledge acquisition.

We offer a comprehensive range of services necessary and beneficial for your engagement in China. From initial preparatory planning and decision-making meetings to developing a business and financial plan, we support you in the complete setup process, including handling all required paperwork, location selection, employee recruitment, and procurement of equipment. Our services are tailored to your specific needs and goals.

Contact us to unlock the opportunities that China holds and ensure a successful business creation aligned with your objectives.

We make sure that your project can be successfully implemented!

Are you considering a company acquisition or looking for merging with a company or purchasing a suitable business?

Regardless of already having a candidate or still looking for a perfect opportunity, it is important to navigate the cultural differences during the various stages of the M&A process. Cultural differences lead to communication problem and different understanding in the assessment result. To reduce the failure of the transaction, we are willing to support you with our network and our know-how.

Sales and Sales Suggestions in China

Trade between Germany and China is in full swing, with China no longer synonymous with cheap imports but instead emerging as the Central European economy's fastest-growing foreign sales market. In recent years, German exports to the People's Republic have nearly doubled. The Chinese production economy's shift from "quantity" to "quality" has led to an enormous increase in demand for European investment and equipment goods, particularly in the B2B sector.

This demand is expected to continue to grow in the coming years.

To ensure your company can thrive in the Chinese market, we provide comprehensive support and expert advice on various sales topics in China.

Our services include:

Market Analyses in China

GO-China Workshop

Sales Controlling

Sales Training in China

Expert Opinion

Sales Partner Search in Asia

Troubleshooting und Solutions in China

Cross-Border E-Commerce in China Overview

China boasts the world's largest e-commerce market, with a volume of 15.42 trillion yuan ($2.17 trillion) in 2023. For 11 consecutive years, the country has led the global online trade market. China's e-commerce growth rate is an impressive 15.6%. The favorable policies of the Chinese government create significant opportunities to enter the Chinese market through cross-border e-commerce.

Cross-border e-commerce allows businesses to expand their global market reach and attract potential customers worldwide.

However, entering the Chinese cross-border e-commerce market can be challenging due to complex customs and administrative regulations, which can lead to errors and setbacks.

To facilitate this, we have developed a comprehensive service package for Tmall HK and Douyin Cross Border in collaboration with our Chinese partners. We guide you through the entire setup and sales process, providing extensive support in areas such as warehousing, customs, and returns. This approach saves you time, costs, and hassle.

Our Approach:

Our Chinese Partner:

Establishes flagship stores for you on Tmall HK and/or Douyin Cross Border.
Assists with transporting goods to the warehouse.
Organizes promotions on the e-commerce platform.
Sets up social media advertising for your brand.
Handles daily tasks such as website updates, customer service, and promotions.
Collaborates with suitable influencers.
Ensures the implementation of your brand strategy in all activities.

Your Contributions:

Maintain intensive communication with the Chinese partner to establish and adjust the sales strategy.
Support media and marketing materials.
Prepare all necessary documents like trademarks, patents (if any), authorization letters to the platform, and other paperwork with the Chinese partner.
Open the Brand Cross Border Flagship Store on the respective e-commerce platform with the Chinese partner.
Ship goods to the cross-border warehouse (typically in Hong Kong or Shanghai).

Costs:

Deposit (charged by the platforms to handle returns).
Sales commission to our Chinese partner: 5%-10%, depending on sales volume.
Taxes (average tax rate under 13%). No VAT or sales import tax for B2C transactions.
Marketing budget.
Warehousing, packaging, and shipping costs.
Additional fees (product-dependent).

Streamline Manufacturing with Supplier Development in China

Outsourcing / Own Manufacturing Company

Due to the current economic situation, nearly all the companies are feeling strong pressure from the market. To reduce cost, the vertical range of manufacture needs to be reconsidered. The possible solution is outsourcing and the finding of supplier development. However, it may be a complicated task for the company.

China offers some advantages for sourcing:

Skilled engineers and managers with moderate salary levels

Cheap labour force and fixed costs

Low price for raw materials like fuel

Rich in international experience with potential system suppliers

Finding system suppliers or having their manufacturing firms in China is important for the manufacturing of higher-quality parts in mass production. Before finding a system supplier for development in China, goals and necessary steps for the progress should be well-defined. Preparing a time and cost schedule for the engagement in China is imperative.

Furthermore, it is essential to adopt an integrated procurement strategy and align your procurement strategy in China with your overall company strategy. Consider whether you are solely seeking cost-effective sourcing or if you require regular parts and components from China. This assessment will help determine the most suitable approach for your needs, whether it be simple sourcing or a more comprehensive system supplier development strategy.

It is crucial to acknowledge the significant differences in mentality and cultural roots. Underestimating these factors can lead to misunderstandings, delays, and project failure. Even seemingly insignificant mistakes, interpretation errors, or a lack of preparation among your executive staff can have adverse effects.

To ensure success in system supplier development in China, it is essential to prioritize thorough preparation, cultural understanding, and effective communication. We provide expert guidance on navigating the complexities of system supplier development in China. Our team can help you develop a comprehensive strategy, avoid common pitfalls, and empower your executive staff to excel in this unique business environment.

With our help, you will be able to reduce the costs. Contact us to discuss the goals and challenges! We will guide you towards successful system supplier development in China.