This document provides information about business opportunities for Finnish industrial design companies in Asia. It notes that despite competition, there is currently an opportunity for Finnish design services in China, Taiwan, Korea, and Japan as manufacturers in these countries seek to produce branded products but still lack some design competencies common in Finland, such as service design. It outlines some of the specific needs of companies in Asia, including product design, consulting, and user experience design. The document recommends that Finpro can help Finnish design companies enter these Asian markets by analyzing their business, identifying profitable market entries, defining optimal sales channels, and finding local partners.

1. Industrial Design
Business Opportunities in Asia
17.5.2013
Kati Uusi-Rauva
Senior Consultant
Creative Industries

2. Service Industry Know How at Your Service
• Services team offers expertise on a wide basis
• Focus idustries:
– Travel
– Creative Industries
– Education
– Knowledge-intensive industries
21/05/2013 9© Finpro
Saku Koskinen Heli Mende Irma Patala Kati Uusi-Rauva Michael Warner

3. Finpro’s References in Creative Industries
5/21/2013 10© Finpro

4. Background for the Market Opportunity
Regardless of fierce competition there is
currently a window of opportunity for Finnish
design services providers in China, Taiwan,
Korea and Japan.
• OEM/ODM manufacturers and their
subcontractors in China, Taiwan and
Korea are striving to produce branded
products for global markets in the B2B and
B2C sectors.
• Finnish design professionals have
competences that are still scarce in Asian
markets: conceptual and service design,
usability and functionality, as well as areas
where a holistic design approach is
required.
• Scandinavian design is highly valued in
Asia
21/05/2013 11© Finpro

5. Examples of Scandinavian Design companies at
the Market
CBD Group
Industrial Design
Scandinavian
Design
Consultant Co.
Ltd
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6. Matchmaking Know How and Customer Need
Finpro is ready to help Finnish design
companies to do business in Asia.
Verified needs:
• product design and mechanical
engineering
• process consulting
• design strategy and process audits
• branding and graphic design
• user experience or user interface
design
• service design
• high-tech prototype production
21/05/2013 13© Finpro

7. Outcome of the Market Opportunity Session
21/05/2013 14© Finpro
Offering and
action plan to be
defined&dicussed
further
in order to help
Finnish industrial
designers to enter
the Chinese market

8. Let us Help Your Business to Grow
Finpro experts understand how a
Finnish company can do
successful business in Asia.
We will:
• analyze your business process
• identify a profitable market
entry
• define criteria and tools for
achieving optimal sales
channels
• find local partners to represent
your company to your networks
and contacts in markets
21/05/2013 16© Finpro

9. Cultural Gateway Finland offers turnkey
services for international live
entertainment productions to ensure
successful entry from Europe to China
and from China to Europe. With the help
of Finpro, Cultural Gateway Finland
signed the historical first theatre
management joint venture between China
and foreign company and manages now
Shanghai Daning theatre together with
the Chinese Partner.
Finpro has been a significant part
of the cooperation during which
we have managed to sign the
historical first theatre
management joint venture
between China and foreign
company.
The greatest benefit for us has
been the top expertise of the local
Finpro consultant who has given
us concrete help in the
negotiations by clarifying the
cultural aspects and the
successful way to establish
contract.
Johan Storgård, CEO, Cultural
Gateway Finland

10. Founded in 2012, Cultural Gateway Finland (CGF) is a joint company managed
by four Finnish companies: ACE-Production, PES Architects, Pluto Finland and
Bif Advisors. Cultural Gateway Finland owns service brand Center Stage China
though which it offers turnkey services for international live entertainment
productions to ensure successful entry from Europe to China and from China to
Europe. The business areas include venue and network management, local and
state governmental permits, production logistics, technical support, copyright
management, production management, public relations, marketing and
production sponsorship, conference and corporate event management.
Rapidly growing mid-class’ demand for international standard performing arts
and entertainment is rocketing in China. Official China is opening borders for
international productions as culture businesses are in focus of the new five-year
plan. Hundreds of state-of-the art venues built during the construction boom
need high-quality content to drive the capacity utilization rate higher. However,
there are lots of rocks on the road which need to be removed such as the lack of
international production quality skills in China, language problems in all levels
from content adaptation to contacts to authorities, difficulties in navigating
through the hierarchical bureaucracy, permit procedures and heavy
bureaucracy, which causes unpredictability and makes long-term planning
challenging. Access to venues negotiated individually is time consuming,
Marketing and sales efforts by local operators and venues is often insufficient.

11. The cooperation between Finpro and ACE-Production started in Luovimo 1
program and continued later in Luovimo 2 with Cultural Gateway Finland.
Together with Finpro PES-Architects (theatre design) and ACE-Production
(theatre management) composed a joint offering with common marketing
material. Finpro helped Cultural Gateway Finland in partner search in China and
supported company in the negotiations with potential partners and in joint
venture business license process. With the help of Finpro, Cultural Gateway
Finland launched its services in London in November 2012, created a large
customer database consisting theatre producers in Europe and carried out a
roadshow in German speaking Europe during which company met potential
customers.
Cultural Gateway Finland signed a historical first theatre management joint
venture between China and foreign company and manages now Shanghai
Daning theatre together with the Chinese partner. The theatre has own stage
with 1 115 seats and western standard venue management and production
support. Joint venture partner CPAA Entertainment Shanghai Ltd. is part of the
China Arts and Entertainment Group (CAEG). As a result Cultural Gateway
Finland has access to CAEG network with 34 theatres in China. The launch
event for Center Stage China was held in London and Cultural Gateway Finland
got also high quality media coverage in the Stage Magazine and in the
Independent. Now Cultural Gateway Finland has a customer database with more
than 200 contacts who are interested in the offered opportunity in China.
Negotiations with more than 20 producers in Europe to bring productions to
China are ongoing.

12. Jalo Helsinki is a born global
company, which specializes in
producing, developing and
designing fire safety devices.
Finpro carried out test drives for
Jalo Helsinki in France and
Germany.
We were very satisfied especially
on the test drive assignment
carried out in France. It opened
our eyes about the size and the
potentiality of the market. We
found a French distributor from the
test drive assignment and have
now recruited a French speaking
employee.
From the test drive assignment in
Germany we found out that the
markets required an additional
certification, which we are at the
moment acquiring. This was the
most important finding related to
German test drive.
Miika Perä, Co-Founder, Jalo Helsinki

13. Jalo Helsinki is a born global company established in 2009 and
located in Espoo. Jalo specializes in producing, developing and
designing of fire safety devices. The company has developed
the world's most stylish and functional smoke alarms Kupu and
Lento, designed by Harri Koskinen and Paola Suhonen.
Jalo Helsinki decided to start their internationalization in 2010
with the support of Finpro. Company’s target was to research
markets and to find suitable distributors from the German and
French markets.

14. Finpro carried out test drives for Jalo in Germany and in
France. During the test drives the right customer segments and
distribution channels were identified and the company’s product
was tested with few different distributors. As part of the test
drives, Finpro also researched the required fire safety
certifications in both countries. It was very important for Jalo to
find out that in the German markets fire safety devices should
have an additional certification.
From the test drives carried out by Finpro, Jalo has gained
information about the markets, their development trends and
found valuable business leads. The market information has
made it easier for Jalo to allocate its resources to the most
potential areas within the markets. At the moment Jalo has
distributors in both France and Germany, the former one found
during test drive assignment. Jalo has also recruited a French
speaking employee.

15. Finpro carried out partner searches
and sales channel development for
VM-Carpet. Partners are now found in
Denmark, Sweden and South-Korea.
In Japan the existent contacts have
been deepened and the company has
got more information about how to
operate in the market.
We have got lots of more
information and understanding of
market operations and market
structures within our industry. We
have also got new contacts and
cooperation partners. As a result,
we really have accurate and
concrete information, not just
feeling that we might know
something.
When we were visiting South-
Korea and Japan we had a Finpro
expert with us, which made our
visits easier. She gave comments
after client meetings and made it
easier for us to understand the
culture.
Maria Hanhisalo, Managing Director,
VM-Carpet

16. VM-Carpet is an innovative carpet manufacturer, which offers
high quality carpets for different furnishings. The company was
founded in Lappajärvi in 1973. VM-Carpet´s carpets and rugs
are sold in specialized carpet stores, department stores and
furniture and decoration shops. Today VM-Carpet’s products
are exported and distributed in more than 20 countries.
The boom for shaggy carpets had a downturn at the end of
2000s. To ensure the continuous growth after downturn on
domestic markets, VM-Carpet wanted to find new markets
abroad and develop their international business model. The
company decided to contact Finpro.

17. First Finpro studied market potential and sales channels for VM-
Carpet in Sweden, Norway, Denmark and Japan. Next step was to
search partners in Sweden, Norway and Denmark. In Japan the
challenge was to strengthen existent sales channels. VM-Carpet
participated in Foresight project. There the target was to discover
new product and service ideas and to find new operation models.
VM-Carpet took also part in Leaping Tiger Export Program (Asia).
During the program Finpro carried out business opportunity check in
South Korea and organized meetings in Japan, China and South-
Korea .
VM-Carpet has found partners in Denmark, Sweden and South-
Korea. In Japan the existent partnership has been deepened
and VM-Carpet has got knowledge about how to operate in the
market. From Finpro Foresight project VM-Carpet got new
practical ideas, which are now used in company’s research and
development.

18. Rahoitusvaihtoehtoja
21/05/2013
26© Finpro
Valmistelurahoitus
max. 15 k€/ 70 % tuki
Projektin max. arvo 21400 €
Yrityksen
kehittämisavustus
n. 15–100 k€ / 50 % tuki
Yhteishankintakoulutus
n. 30-130 k€ /70 % tuki
Tekes T&K avustus
n. 20–500 k€ (50 % tuki) ja
T&K laina (50-70%
kustannuksista)
Tekes De minimis avustus
max. 100 k€ / 35-50% tuki
Tekes nuoret innovatiiviset
yritykset
50 k€ + 250 k€ + 750 k€ / 75
% tuki
Go Global Plus
(ELY/Finpro) arvo n.17.5 k€,
johon n. 75 % tuki
Finpro Kasvumarkkinaohjelma
Aasia, Kiina ja Intia, Afrikka ja Lähi-Itä
sekä Pohjois-,Keski- ja Etelä-
Amerikka (TEM/Finpro) arvo n. 20 k€
johon n. 50% tuki
Finnpartnership
tuki 3v max. 200 k€ / 30–70
% tuki
Finnvera
lainat, takaukset, vientitakuut
ja pääomasijoitukset
Finpron ohjelmia, joissa rahoitusmahdollisuuksia:
Julkisia rahoitusmalleja:

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