Emerging Markets Provide Opportunities for Business Growth | DOING BUSINESS IN CHINA

Doing Business In China with Dan Paulson

When expanding into China, look no further than... Hangzhou, Tianjin, Xian...

With China now occupying second place behind the US in the world economy, its no secret that opportunity exists there. Upon traveling to China in 2009, I witnessed tremendous growth. I would often joke that you could walk atop the high rise cranes from Beijing to Tianjin and never have to touch the ground. That is as true today as it was then. China has been going through a period of dramatic growth. Companies that are well positioned and intelligent about their approach stand to significantly increase their revenue through international expansion.

Often companies look to the power markets in China when they enter the country. Some believe their greatest opportunities are in Shanghai or Beijing. The truth is these markets represent a very small part of a vast and rapidly growing economy. In a recent report on China's Emerging Markets put out by the US Department of Commerce, it is important to note that the key to China's economic growth aren't the most recognized cities. Instead, 53% of China's total imports comes through "second-tier" cities. Shanghai, Guangzhou and Beijing represent the megacities with enormous populations while other cities such as Tianjin are smaller. Of course smaller is a relative term considering Tianjin has a population greater than 11 million people.

The truth is these second tier cities have a lot going on. They are centers for trade and logistics. Some even are centers for tourism (such as Xian). What's important to remember here is when it comes to trade in China, everyone thinks of Beijing or Shanghai. The numbers speak for themselves. Not only is it much more difficult to get things going in these mega-cities, it is also easier to get lost in the shuffle.

Consider Tianjin for a moment. Most people wouldn't know where to look on a map to find it. Yet it is one of the largest port cities in China and provides a direct line of supplies to the northern cities including Beijing. The TEDA (Tianjin Economic Development Area) is home to most of the Fortune 1000 companies and works aggressively to bring business into the country. This provides much greater opportunities than Beijing.

Since opening my foreign office a few years ago, I have been impressed by the willingness of these second-tier cities to facilitate business growth. When people ask my "why Tianjin?" I have plenty of reasons to share. For those seeking to grow in an emerging market such as China. The opportunities exist if you know where to look.

www.growinchina.com

For more information, please visit Dan's TNNWC Bio.

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Emerging Markets Provide Opportunities for Business Growth | DOING BUSINESS IN CHINA

Tied Together Globally: Natural Events and Their Impact on Us | DOING BUSINESS IN CHINA

Doing Business In China with Dan Paulson

The earthquake and tsunami in Japan demonstrate how globally connected we are. In business, this presents risks and opportunities.

Our world is constantly changing and much of that is beyond our control. That became very apparent this March when a large earthquake followed shortly by a massive tsunami hit the coast of Japan. To our friends and colleagues, our hearts go out to you, and we wish only the best.

Besides the physical damage created and the tremendous number of lives lost, there is also an economic ripple that impacts virtually every country. Japan is a major supplier of semiconductors and automobiles. Early predictions are to expect cost increases and production delays at least for the short term. The bigger impacts may be felt in Japan’s economy for years to come.

Recently, China surpassed Japan to be the second largest economy in the world. The current situation presents both challenges for China and possible opportunities. One of the greatest challenges that China will face is importing. Japan is China’s largest import partner with 13% of products coming from there. The short-term impact is already being felt, as needed components are not shipping. The parts shortage will slow down China’s industrial engine that it has built so much of its economic growth on. While this is expected to be only an immediate problem, the long-term affects could strengthen China’s position as an economic superpower. Japan, which already had its own economic woes is not helped by the latest turn of events and while they will recover, one has to ask to what level.

For other countries, they too will experience short-term problems with the interruption to the supply chain. However, this may also be an opportunity for other countries to increase their import power to China. As a developing nation, China still has many needs to fill. With the current situation, China may choose to seek components from elsewhere in the world and some companies may want to take advantage of this.

Our role as a nation is to help Japan get back on its feet as quickly as possible because the biggest challenge globalization presents is the impact of one economy on another. Yet we also need to look at ways we can strengthen our business growth. Emerging companies could reap the greatest benefit from this. It just depends on what you are willing to do.

http://www.invisionbusinessdevelopment.com/

For more information, please visit Dan's TNNWC Bio.

---

Powered By TNNWC Group™

For complete tactical and strategic business planning, marketing, media, lead-generation, technological and capital resources, scalable solutions and tools to support every entrepreneurial start-up, young enterprise, small- to medium-sized business and emerging high-growth company, talk to The National Networker Companies™/ TNNWC Group, LLC.

We are a collaborative entrepreneurial, creative organization offering you hands-on, personalized assistance in every aspect of achieving your monetization, profitability and financial sustainability objectives, domestically and globally.

We don’t just coach you or offer you pre-packaged, push-button solutions – we listen to you, analyze your exact needs, and work within your budget to: 1) create your tool kit and 2) work as your partner to implement your plan by supporting you in the most efficient and productive use of every tool.

Visit our website, which is located at http://www.TNNWC.com .

To receive our newsletters, publications, information bulletins and alerts, simply join us as a Member. Membership is free and the benefits are unequalled anywhere.

Just go to our home page, and click on the “JOIN US” button.

---

Capital, Traffic Building, International Customers and unique SERVICES.
The National Networker Publications™ produced by TNNWC Group, LLC

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Tied Together Globally: Natural Events and Their Impact on Us | DOING BUSINESS IN CHINA

DOING BUSINESS IN CHINA: Consumer Nation: You May Want to Look at China For Exporting, Not Importing

Doing Business In China with Dan Paulson

Though it has taken some time, the consumer power of China is a force to be reckoned with. Now may be the time to seek opportunities in the Chinese consumer market.

For years now, we have heard about sourcing products to China for low cost manufacturing. Some companies have been very successful with this while others have found it to be a painful process. In either case, importing products leads to exporting jobs and as it turns out, potential opportunities.

As is often the case, we tend to get trapped in our own tunnel vision. The US has been the greatest consumer nation for decades. Cheap money and a credit-based society has allowed a person to “buy now and pay later” which has kept the engine going for quite some time. In recent years this has changed as a weak economy has hit people in the wallet causing them to spend less. The good news is early predictions from this year’s holiday season sales are up substantially, which is a positive sign that consumer confidence is growing here. But what about spending elsewhere?

China is one of the fastest growing consumer populations spurred, in part, by our investment in manufacturing there. While many in China are still working to earn a living wage, many others have taken advantage of this new prosperity. As wealth grows, many Chinese are buying. What do they prefer? Brand names from other countries. With the right product or service, this could be a great time to expand into the Chinese market. Consider the following:

• China’s population exceeds 1.4 billion people with the population transitioning from an agriculture-based to industrial-based society
• There is growth in virtually every sector of spending from housing, to food to electronics to cars
• Until recently, the Chinese rarely purchased virtually everything under one roof. They were more accustomed to specialty shops providing specific goods. Today, department stores and retailers such as Wal-Mart are expanding in China.
• China is still a cash-based society. Most Chinese save at least 30% of their income. They are accustomed to paying cash when they buy. Credit cards and checks are used very differently and are rare occurrences in transactions.
• The youth is where it’s at. A younger, educated workforce wants the brand names and gadgets their parents couldn’t get, or afford. They look to western culture for the trends in fashion, food and technology.
• Brand is important. The Chinese seek brands they can trust because they know what they can expect from it.
• Quality is key. This culture was used to shoddy products that failed to meet expectations. Companies that make products where quality is much higher than what currently exists in the markets will do well.
• Price is still important. The Chinese are still price sensitive. Many work hard for their income and part with it only when there is a true benefit. Being a foreign competitor and remaining price-competitive can be a trick, but if mastered, can lead to great success.
• The need for infrastructure. Cities are growing rapidly. Needs for sustainable energy, water quality, transportation and other services exist. Companies with expertise in these areas can experience profitable growth with decades worth of work ahead of them.

As our own economy begins to bounce back, the growth will be slow. However, more companies are looking for opportunities in the market. As a nation of innovators, it may be time to not only look at opportunity here, but also abroad. While there are no guarantees, with the proper planning, research, and connections, the potential exists for businesses to expand and be profitable. Are you willing to seek out that opportunity?


For more information, please visit Dan's TNNWC Bio.

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DOING BUSINESS IN CHINA: Consumer Nation: You May Want to Look at China For Exporting, Not Importing