Shanghai

Telephone Number: 86-21-51119028
Fax Number: 86-21-52524616
35F CITIC Square, 1168 Nan Jing Rd.
Shanghai 200041, China
dvida@technifind.com

Shanghai was Technifind's first truly "global" location. We are proud to be active now for ten years in the world's second largest economy, recently eclipsing Japan. Our Shanghai office serves as the base of operations for all of our emerging market business in Asia. Our Technifind consultants through our China office can help your organization regardless of your needs. We have helped organizations from the Fortune 500 to startups work through the complicated framework of JV's, WOFE's, greenfield, brownfield, export driven or domestic sales opportunities in China. Technifind has access to many of the best leaders in the industry that have the blend of Western business education and acumen combined with the language and cultural mores required to be successful in capturing the market in China. In addition our Shanghai office supports key roles throughout the region in countries such as Taiwan, Hong Kong, Singapore, Japan, Australia, Malaysia, Thailand, Indonesia, and The Philippines.

Snapshot of the Chinese Market

The demands of doing business in China are more difficult than ever. Literally thousands of businesses fail each year in China for one of several reasons. First, the cost structure in China is changing rapidly. Gone are the days where you can start doing business in China for low cost manufacturing or sourcing alone. If you are going to do business in China you have to realize that China is NO LONGER A LOW COST MARKET. Double digit growth in labor and social insurance rates in China combined with the removal of many of the tax incentives by the Chinese government, as well as high shipping costs, make it impossible to survive in China as solely an exporter over the long term. Companies need to be able to tap the potential of the fasting growing middle class consumption market in the world. With nearly double digit GDP growth rates throughout the global recession, Chinese citizens have accumulated wealth faster than any other people group in the world at the moment.

Second, companies fail in China because they fail to understand the cultural differences in Chinese consumers' desires. Just because a product is wildly successful in the US or Europe, it does not translate into instant success in China. In the luxury sedan market, Audi was the first foreign carmaker to discover that the Chinese consumer prefers a longer wheelbase than it makes elsewhere in the world and as a result they introduced the A6L in China in 2006. Audi was able to increase market share in a fiercely competitive market and had a clear competitive advantage over competitors like BMW and Mercedes until they released their own "L" version sedans. This one example is one of hundreds that provide important insight about the significance of clearly understanding Chinese culture to realize business success.

Third, companies fail in China because they underestimate the difficulties of working with the Chinese government to be successful in China. The days are gone where the Chinese government overlooks any regulations in order to encourage foreign investment. The Chinese government now leverages its strengths and recognizes that companies need to do business there to stay competitive. As a result, China has evolved into one of the more restrictive places to do business in the world. China regularly revamps both environmental and labors laws that make it difficult for companies to stay on top of things without managing government relationships proactively.

Lastly, companies fail because they fail to recognize the cultural differences in the labor market in China. The way that businesses are run in boardrooms in the US or Europe will not translate into success in China. In China titles are very important. If companies don't come up with creative solutions to rapidly advance strong performers in progressive titles, they stand to lose their best and brightest workers to another company. Additionally family and sense of importance or belonging are very important Chinese values. Companies that overlook this fact can often be caught off guard when huge percentages of their direct labor and middle management are lost after Chinese New Year. Understanding Chinese cultural values in the workforce is paramount to success in China.

Technifind has consultants that are experts in China business practices that can come alongside and work with your organization to help advise you in both the realms of talent and business strategies for complex markets in China and other Asian emerging markets.