Our market entry advisory helps companies to choose a market, method for incorporation, business model, funding structure, and supply chain structure that meets the needs of their local and regional operations.
China’s huge population of 1.4 billion and the sheer speed and scope of its economic growth are what makes the country such an attractive and unique investment opportunity.
However, although it is true that China represents a huge potential market for foreign made goods and services, it is also the case that understanding where these opportunities lie and how to access them can be extremely challenging.
Develop a Comprehensive Market Entry Strategy
China is not a uniform and homogeneous market. There are huge variations between different provinces and regions in terms of GDP growth, lifestyle, spending habits, average household income and education levels, and so on. China is effectively a collection of individual sub-markets defined by vastly differing demographic, economic and cultural characteristics.
Arcadia, as a market entry firm run world class professionals with personal ties to China, can offer unique insights into this field for any investor considering entering the Chinese market. Foreign companies often consider setting up a holding structure for their Chinese entity.
Although it’s not a must, many foreign companies like to have Hong Kong holding companies for their China entities in order to enjoy favorable tax treaties and preferential policies in some industries.
The Arcadia team collectively has decades of experience setting up exactly this type of entity and can walk you through every step of the process. China abolished registered capital requirement in the 2014 Company Law amendments.
Investors can now freely decide how much registered capital they want to put in to a Chinese business. Investors should always maintain as large of a registered capital amount as possible. Since they are no longer required to make any capital commitment, a bigger registered capital quota serves as an insurance policy that investors can always put in sufficient funds to cover China expenses in emergency situations.
- Cross Country Competitiveness Benchmarking
- Tariff and Supply Chain Engineering
- Corporate Structuring Analysis
- Funding and Register Capital Analysis
- Comprehensive Entry Strategy Development
Location Analysis and Site Selection
Our location analysis and site selection service focuses on analysis of optimal regions for investment, profiles of special economic zones, and supports companies during visits to site locations.
Many foreign investors will still choose first-tier cities Beijing, Shanghai, Guangzhou, and Shenzhen to be their focus markets. While the first-tier cities are metropolises with the that enjoy highest household income in China and an avid consumer market that serves as a good fit for many foreign investors.
However, second tier cities, cities like Chengdu, Chongqing, Hangzhou, Xiamen, Zhuhai, Xi’an etc. have witnessed increased consumer spending and rapid growth for foreign made products and goods. Second tier cities also offer investors a less expensive business environment in which to operate their business.
The Chinese government encourages the setting up of industrial clusters in specific cities or regions, and in many cases complete industry supply chains can be concentrated in just several selected cities. For foreign companies in many industries, identified these clusters can help them better understand where their target customers are, which cities to focus on and even where to base its operations close to a certain manufacturing cluster in order to better benefit from the network effects that these clusters provide.
It is extremely important for foreign investors to identify the best location possible for their business in China. Acadia Advisory Group will help to map out locations of your customers and suppliers, compare cost benefits, logistic capabilities, labor conditions, as well as tax and governmental incentives in different regions to help you make an informed decision on whether to setup in more a developed, modern city, or in a second or third tier city with more potential.
- Different Regions Cost Comparison
- Infrastructure Quality Analysis
- Industrial Zone Identification and Benchmarking
- Site Visit Support
Business Meeting Support
Finding good business partners in China is essential to running a successful business in the often-byzantine business environment of the Middle Kingdom. A local partner is indispensable in helping you with complicated Chinese regulations and legal processes and will be able to deal with the Chinese government when the needs arise. A local partner in sales can help you to distribute products in to the mass market in a cost-efficient way, and introduce the brand to an unfamiliar new market.
Our team helps foreign companies select trustworthy partners, leveraging our industry knowledge and extended network. Foreign investors will need to have a meeting agenda and the desire build a long-term relationship when going into a meeting with potential Chinese partners.
Participating in a trade fair is an effective way to explore a new Chinese market. It helps foreign companies better understand the market and their competitive landscape, enhance brand visibility, and find new clients or potential partners in the market.
Foreign companies should be prepared before coming to a trade fair. Companies can conduct research to discover trade fairs in China relevant to their industry and then reach out to existing customers and suppliers about the participating in the trade fair. Always have your sales team ready to talk to the local market participants, and have product materials translated into Chinese. Try to talk to as many people as possible in the trade show and visit other companies in the industry.
- Meeting Target Selection
- Meeting Setup and Transportation
- Translation Support