Over 65 local business people and students attended the US China Business Connections (UCBC) monthly meeting held at the Metropolitan Community and Technical College on Wednesday, Oct. 7, 2009. Rodney Hiel, Managing Director of Asia Business Consulting, delivered “Selling to China - Marketing Strategies for Today's Economy”. Over 65 local business people and students attended the US China Business Connections (UCBC) monthly meeting held at the Metropolitan Community and Technical College on Wednesday, Oct. 7, 2009. Rodney Hiel, Managing Director of Asia Business Consulting, delivered “Selling to China - Marketing Strategies for Today's Economy”.
The program agenda included:
* Today’s China Market
* Where’s the Growth
* Where’s My Customer
* How Do I Get To Them Today?
The presentation began with a current description of the China business landscape and the success U.S. businesses are having in China through a recent survey of over 7,000 U.S. companies in China published by the U.S. Chamber of Commerce office in China. A variety of statistics were revealed such as 2008 profitability levels, revenue and operating margin changes from 2007 to 2008, and 2009 revenue forecast of which 71 percent of the firms believe their 2009 revenues will range from unchanged to up over 50 percent. The China market description left a favorable impression on the audience wishing to do business in China.
Mr. Hiel then presented the growth opportunities available in China. He categorized them into 3 areas: 1) Government Stimulus Spending, 2) Consumer Spending, and 3) Domestic Oriented Provinces. Next, he compared the U.S. stimulus package and the China stimulus package in relation to its GDP and the affect on its respective economies. He stated the impact of spending on China’s economy was approximately 13 percent of its GDP whereas the United States’ spending was less than one percent. The US$580 billion Government Stimulus Package was broken down to the amount spent in each category and he outlined which businesses would benefit from the stimulus spending. The Consumer Spending was partly helped by government rebate incentives for various electronics purchases as well as the Sales Tax Reduction for automobiles purchases. The last category he stated was Domestic Oriented Provinces. This has not been very prevalent in the U.S. media. This opportunity focuses on provinces where industries that produce for domestic consumption did better than those provinces that focused on exports. Provinces with fewer exports and manufacturing for domestic consumption continue to realize double digit GDP growth with strong economies. Looking closely at these provinces can reveal opportunities and some even have lower entry costs.
After identifying the growth opportunities, Mr. Hiel provided the insight to how to find new customers. He applied the location of these growth opportunities to direct the audiences’ attention to their target markets; he said, “By finding your target within the geographic areas of the stimulus, this will provide a strong indicator as to the location of your most desired customer.”
After finding the customer, Mr. Hiel then presented some ways to access your customer today. He recommended using internet technologies and leveraging partnership opportunities. He presented several ideas in how a company might use search engines and social Web sites for branding opportunities to market one’s products to the China customer. He then described a method Asia Business Consulting successfully uses to enter the China market. Leveraging Partnership Opportunities is a 2 step process: 1) Find companies already selling to your prospective customers in China, 2) Partner with them for a mutual benefit. This can reduce the time to market and avoid many barriers to getting into the China market. Successful partnerships he described included the General Mills and Nestle joint venture of Cereal Partners Worldwide, the Polaris and Bobcat Long Term Strategic Alliance, and a few others.
Mr. Hiel concluded the presentation describing the services of Asia Business Consulting. This consulting firm specializes in the strategic planning process to efficiently enter the China market. It has a large network of experts that are China based Fortune 500 executives, multi level government officials, and administrators, professors, and students/alumni networks of 2 of the top MBA programs in China from which it gathers, processes, and formulates its research. This combines a multiple expert perspective in their research and provides a unique, on the ground, up to date information for their clients to make sound business decisions. The research then incorporates a thorough analysis of all possible business activities in China such as sourcing, manufacturing, and selling to China in order to obtain the full value of the investment a company will make to sell their products in China.