Post on 10-May-2015
Competitive business models in the Chinese Market Zvi Shalgo – CEO, PTL Group
March 20th 2013
More than Management ™
China Economy forecast
China employee monthly salary
Higher Labor Cost
The number of Chinese Internet users is increasing at a dramatic pace — over 2100% in the
last 12 years.
Source: Social Times
Internet Users in China
Studies are showing a dramatic increase in the amount of e-commerce that occurs in China, and expectations are that Chinese online trade will grow to be the world’s largest by 2015.
Source: Social Times
Online Sales in China
FIE’s focus has shifted from top tier clients to the fast growing and extremely competitive mid-market.
Selling “advanced technology” and “European quality” alone are not enough to sustain a marketing advantage.
The Chinese Government is supporting chosen local industries financially, technologically and commercially.
Rising operational cost reduces China’s attractiveness as a low cost manufacturing center. Over 70% (AmCham 2011 survey) of manufacturing FIE’s are “made for China” oriented.
Chinese Domestic Market Forces
www.PTL-Group.com
Chinese Domestic Market Forces
www.PTL-Group.com
Effective Operations and
Strategic Investments in support
infrastructure has become THE MAIN CHALLENGE in the race towards a
competitive advantage
What normally goes wrong during penetration to China?
New Operational Concepts:
• Outsourcing key management & operations resources
• VC, PE - Getting investment from Chinese-Foreign funds
• Working with Chinese local governments to develop new support structures fitting small technology oriented companies
• Following up Israel / China governmental support initiatives (“100 Million”, Joint R&D Funds)
www.PTL-Group.com
Industrial Incubation
Local R&D operation as your foot hold in China
localization of products and knowhow pre-sale and after-sale focus investment/cost saving local supply chain support
Signing Ceremony between Matrix Global and CZ Government
CZ Mayor Yao Xiaodong (right), Chinese Ambassador to Israel Gao Yanping (center) Industry, Trade and Minster Shalom Simhon participated in a ceremony to mark the signing of Matrix Global’ s agreement.
Chinese & Israeli Governments start to develop updated approaches to support technology oriented companies
Local operations are a key to commercial success in China Local operations are a key for local investment
www.PTL-Group.com
Zvi Shalgo
Email: exec@ptl-group.com
Mepi Frankel
Email: mepi@ptl-group.com
Shanghai Head Office
Room 301, 798 ZhaoJiaBang Rd.
Shanghai, 200030, P. R. China
Phone: +86 21 64453190, Fax: +86 21 64453191
Contact Us:
www. PTL-Group.com China • Israel • The Netherlands • Italy
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