Market analysis

Perceptions regarding the product, price or promotional activities are no longer sufficient for a successful market launch in China. Political influence and what one calls public relations are essential preconditions for an effective start. CMC knows the public network of relationships as well as the resistance among Chinese partner companies but is also aware of which doors are open at agencies and among industrial leaders.   

Before any market entry, the results from any necessary examination of the general framework conditions or from market analyses can only be as good as the survey itself is dependable. CMC has achieved a depth of research, still unsurpassed to date, whose base has been continually widened with the experience gained from decade to decade.

Partner identification

Investments in China rarely lead to success without an experienced and reliable partner. CMC has been accompanying small and medium-sized enterprises in China for more than 30 years in their search for a partner that can successfully represent the company in China. The cultural differences between Europeans and the Chinese should not be underestimated. To find a suitable partner that understands your philosophy and can implement it in China is crucial. CMC supports you in finding the right partner.

Recruiting

Similar to Germany, finding the right staff is also crucial in China: whether it is for senior management, sales, procurement, HR, production management or quality assurance.  Companies invested abroad increasingly prefer to recruit local staff since they know the language and the culture and are very familiar with the practices prevailing in everyday business life in China. To speak English and even German has today become a matter of course for more and more, well-educated Chinese people.   

Recruitment is an important issue and takes time since very many of the Chinese are really interested in working for foreign-invested enterprises. Recruitment is implemented professionally thanks to our German/Chinese team. CMC has developed a good instinct over the years as to which candidate fits to the profile and philosophy of your company.

Liquidation

Perhaps a foreign investor wants to terminate its activities in China for any one of a number of reasons. Any deregistration of a company is a laborious step and one where, under certain circumstances, the support of a China-based law office may be necessary. To handle this process in a legally-proper manner, CMC has been cooperating for many years now with a reputable law firm in China.

Company foundation

Which type of company is the right one for your plans in China? Is a representative office enough or should a wholly foreign owned enterprise (WFOE) be established? Is it meaningful to create one’s own production facility or is a sales company sufficient?

The foundation of a company in China is a formal process which can take some weeks/months. As in Germany, the Chinese authorities also insist on having a lot of documentation. All the forms have to be submitted in the Chinese language. CMC staff have many years of experience in handling Chinese bureaucrats and in dealing with the bureaucratic necessities. Needless diversions, multiple submissions and their associated costs can thus be avoided. CMC customers are spared making many unnecessary and costly detours.

Competition analyses

China has been a continually growing market for foreign companies since the end of the 80s.  However, it is also no secret that even the Chinese producers are increasingly paying more attention to quality in their own manufacturing processes.

To provide you with a good overview, CMC can prepare a competition analysis showing you just how the national and international competitors are set-up and faring.

Procurement/Supplier qualification

CMC is also able to provide a service for companies wishing to procure finished or semi-finished products in China. Potential suppliers can be analysed and qualified locally together with the customer. The punctual monitoring of the orders, a quality check in line with specifications agreed upfront as well as consignment invoicing processes are all tasks that can be handled by CMC/HUADE.

Company sale/Assumption of shares

It is no secret that more and more Chinese firms are also investing or taking over companies in Europe. For some time now this has not been happening simply to transfer know-how and machinery to China, but increasingly it is the plan of investors to use the foreign investment as a hub in Europe and to continue to successfully grow the business.   

In the event of any complete or partial sale intention on the part of foreign enterprises in China, CMC controls an extensive network of business-similar foreign and Chinese companies that are interested in synergy effects. CMC can always offer German as well as Chinese companies a point of coordination for making and checking-up on contacts as well as on overlapping interests.  

Of course, the same also continues to apply for China: should you be interested in taking over a Chinese company, CMC is available to assist you at any time.

Sales

In addition, CMC offers foreign companies, who cannot or don’t want to got to China themselves due to lack experience, liquidity or manpower to use CMC´s structures. In the course of this, the foreign company saves a lot of time and money in order to get to know the market in China, since not all legal bases have to be created in order to get started in China.

Social Media

Social media and E-commerce are important aids in China for presentation and sales. A good presence in the most important channels is becoming increasingly important. The number of internet users in China is currently running at approx. 1 billion persons. But what are the most important channels and how can they best be supported? In such situations, CMC can also provide support in an advisory role.

Restructuring

It may be the case that after a few years in China you may want to or have to modify the structure of your company: whether it be for a change of address or corporate purpose. Anything like that is rather time-consuming in China and entails great administrative effort. CMC can help you implement your plans without losing too much time so that your daily business can continue normally throughout this period.

other services

• Technologie- und Know-How Transfer
  In Germany or Europe developed ideas, technologies, patent- and trade marks will be sold to China where these technologies will be processed into production.
  Beside technologies it is getting more and more interesting, to sell i.e. concepts about setting up age-based lodging with intelligent infrastructure for the increasing aging population in China.
  For such kind of transfers CMC can find an investor or contacts and go along together with the seller.

• In recent years, there have been an increasing number of cross-border incidents of fraud with considerable amounts of damage: CMC has repeatedly provided quite unbureaucratic, rapid and effective assistance and has helped avoid damage going into many millions of US dollars.

• The verification of supplier and partner qualifications belongs – in part – to the investigative scope of examining any envisaged business relationships. 

• CMC has been working successfully for many years now in the implementation of training and qualification concepts for medium-sized and large enterprises. 

• CMC has been able to save its customers considerable costs in out of court settlements between business associates (mediation).

• Marketing and sales strategies, determining performance-related remuneration systems, support at fairs and exhibitions and numerous other services are among the daily tasks handled by the CMC team.

• Support with certifications, approvals for products and standards.