Market Entry

Global Players have long since recognized – China is a core market regarding international competitiveness. Of course small and medium sized companies have a different strategic focus. All the same China might be an interesting option for this target group. There are enough examples which show that small companies can succeed to find a market niche in China. They often develop the segment as a second mainstay making them more independent from saturated Western markets. The Swabian baker who meanwhile runs an entire chain of bakeries in Beijing offering „real German bakery products“ is just one example.

All the same it is recommendable to check the business idea thorougly regarding its feasibility and potential risks. peterek offers consultancy when a market entry is under consideration and offers support when projects which promise success are being implemented.

Intellectual Property Rights (IPR) – the first barrier

The protection of intellectual property rights still presents a barrier which prevents particularly small and medium-sized companies from taking the plunge and from entering China. In recent years, however, considerable efforts have been made to improve the protection of intellectual property rights owned by companies. Important is, however, that certain steps are taken before a market enty takes place. Otherwise protective regulations and in case the worst happens rights for recourse are not effective. Regarding this issue peterek offers practical advice.

Estimate market potential

It is of utmost importance to estimate the market potential particularly in case of a market niche policy. Reliable and current market research data, however, are often hard to obtain when it comes to China. peterek cooperates with reliable and decent market research agencies, which work according to western standards. Thus it is possible to evaluate based on research data, whether a certain business idea has a chance in the Chinese market. Besides, the results of the market research might offer valuable advice how to adapt a given product to make it more attractive for Chinese customers.

Export or manufacturing in China

If a project finally promises success the next question to be answered is – export or production in China? There are no standardised answers to this question. Type of product or service, transport as well as insurance costs and bureaucratic aspects are examples for external criteria which influence decision making in this case. Own willingness to carry risk, time frame of the planned project as well as internal investment and financing are internal criteria which play a role. peterek offers professional advice on the basis of clear calculation and risk analyses being based on experience. If desired, partnering law and tax offices with extensive experience in doing business in China check legal and tax issues as well.

Chinese Business Partners and Investors

Ten years ago Western companies would start to invest in China. Recently Chinese started to invest in Western countries. If you are interested to search for potential Chinese investors – either an active or a silent partnership - peterek offers support. After elaborating specific criteria a discrete search begins. During the entire process peterek acts as mediator.