What Awaits in China 2018: An interview with PTL Group GM – Arie Schreier

January 10, 2018
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As we welcome 2018, we met with PTL GROUP GM – Arie Schreier who shared with us some of his insights regarding the Chinese market – you might be intrigued…

Here are some of the key points:

Market Shifting in China

In 2018, we see a shift at the type of international companies that is entering the Chinese market, from traditional manufacturing and industrial companies to start-ups in the tech and internet sectors. About 5 years ago, the PTL GROUP team felt that everyone who wanted to enter the Chinese market was already here, or that people had tried, failed, and then left. Concurrently, we witness a huge start-up boom, which brought new entrants and clients – and they keep coming. Policy changes paved the path for companies that needed access to special economic zones such as dedicated industrial parks, and allowed an easier entry to the Chinese market.

Alongside the changes at the business environment, the companies themselves have also undergone a type of strategy shift. They do not have the time, patience, or budget to wait around to see results in entering the Chinese market. Therefore, the entire business atmosphere changes toward rapid results as the new standard in the Chinese market.

PTL GROUP’s adaption to the changing Chinese market

PTL GROUP’s clients realized, based on previous experience, they need the kind of support offered by PTL GROUP – a China based partner who assists in managing their operations in China. Many traditional companies PTL GROUP supports chose our services and business platform only on their second or third attempt to enter the Chinese market. Partnering with PTL GROUP led them on the path to success in the Chinese market. However, the start-up companies expect to get it right the FIRST time. Therefore, we adapted to the new market scene by adapting our business models.

As a result of this marked shift, we created special packages and pricing that enabled us to support small businesses at the initial stages of their market entry, and offer them advanced services as they grew and develop. Additionally, based on clients’ feedback, we expanded our variety of marketing services for these clients. For example we offer a WeChat account set up and content management, Baidu SEO and SEM, website relocation and ICP license application, in order to support their needs for Chinese online presence, clear and localized branding, and selling through social media.

Now, we try to identify these companies before they enter the Chinese market, and provide them China Boot Camp. It is a five days intensive training for international start-ups, offering a fuller understanding of every aspect that needs to be addressed when starting a business in China. The Boot Camp prepares companies for their China market entry by getting things right from the get go, so that they won’t need a second or third attempt.

One of our old mantras was “in China, you need to take your time, and have immense amounts of patience. Wait patiently to see results…” But our new client base has proved that this mantra is no longer the benchmark. Some of our newer clients emphasized that they might be in the Chinese market for about 6 months to 1 year, because they are getting bought (exits).

Tips and suggestions for entrants to the Chinese market

Recently, international companies that offer innovative technologies are seeking Chinese investors. However, this usually means Chinese investors want the Intellectual Property Rights (IPs). For these new comers, our suggestion is to understand the investment terms clearly and protect your IP in every aspect, including trademarks, patent, domains etc.  Another complex issue is whether to receive the investment in RMB, since the new law which put transferring RMB out of China under strict control. Feel free to contact us for any lingering questions regarding this matter.

Pillars of success in the Chinese market are often defined by the strong foundation the company they stand on. Strong operational management from the onset of business in China is key, especially for these new young companies whose management are young idealists who are wise to the market needs, but lack practical experience and knowledge of Chinese law and Chinese company management procedures. That is why our professional support is crucial. ”

PTL GROUP supports international companies with a wide range of business services in China.

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