Going beyond talking points and providing attendees with insight into how mid-sized businesses in America can create and successfully oversee a Chinese customer base. www.theabcgroupllc.com

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2. Agenda
►Exporting as an Identity
►Exporting to China
►Market Research
►Market Entry
►Customer Oversight
►Expansion
►Self-Evaluation
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4. Who We Aim to Reach
• Wisconsin business owners
• C-Suite executives
• Trade associations
• Financial, Legal, and Private Equity
professionals
• State and local policy makers
• Educators
“Wisconsin
ranked 19th in the
nation for total
value of exports
in 2012”
Wisconsin Dept of Agriculture, Trade and Consumer Protection
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5. What It Means to Export
Successful exporters possess:
Strong, forward looking leadership
An entire organization that understands the importance of the global
economy
A desire to minimize weaknesses and strive for continual improvement
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7. Opportunity for Growth
“In 17 product categories in
the United States, the market
leader in 1925 remained the
number-one or number-two
player for the rest of the
century.”
Capturing the World’s Middle Class. Court, David;Narasimhan, Laxman
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8. Game Theory
Potential ramifications:
Increased pricing competition
Increased barriers to entry in China
Ripple effects felt across all markets
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9. From Theory to Action
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11. Internal Business Assessment
•Product Evaluation
-Is your product unique?
-Do you have specific IP concerns with your product?
-Is your product easily and affordably shipped by vessel?
•Customer Evaluation
-Do any of your current customers intend to establish a physical presence in
China?
-Do industry trends point towards China being a vital market in the future?
•Current Export Activity
-Do you currently export to any other emerging/ high growth markets?
-What areas do you excel in as an exporter?
-What areas do you struggle with as an exporter?
-Do any of your competitors export to China?
•Available Resources
-Have you identified your capital and manpower constraints?
-Does your organization possess the intellectual capital needed to succeed in China?
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12. External Market Assessment
•Current and projected demand for your goods in the marketplace
-What is the size of your industry in China?
-Is your industry growing or contracting in China, and at what pace?
•Players currently operating in the marketplace
-Who are the major players operating in the marketplace?
-Are your competitors active in China?
-How are these players currently reaching and servicing consumers?
•Pricing competitiveness
-Can the demand for your products withstand increases in costs due to overseas shipping?
-How competitive are your prices with domestic labor costs?
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14. Initial Sale
Has your company received unsolicited business inquiries from Chinese buyers?
What sales channels does your company utilize in other markets to engage new customers?
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15. Selecting Sub-Markets
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16. Structuring Relationships
• Payment terms should be structured to protect your interests
-Industry standards vs Company standards
-Emerging markets vs Mature/Domestic markets
-Means of enforcement
• Terms & Agreements to frame commercial business
-Must take product life-cycle into consideration (one-time sales vs recurring business)
• Quality Agreements
-Prevent fraudulent claims
-Protect all parties
-Claim verification/testing procedures
• Conflict resolution
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18. Active Management
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19. Product Development
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20. Relationship Building
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22. Sales Office
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23. Contract Manufacturing
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24. Joint Venture
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26. Self-Evaluation
□ Is exporting to China essential to meeting your
long- term business goals?
□ Does your company have the qualified personnel
need to meet your goals in China?
□ Are you prepared to potentially become a “Made
in China for China” manufacturer?
□ Are key personnel in agreement with your
company’s long-term China business plan?
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