1. PROFESSOR NEALE O'CONNOR
www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Speaker’s Background
 PhD; FCPA; CPA Australia; Expert
on the management practices of
Chinese firms
 Founder and Director of the China
Supplier 1000 Project
 Founder www.Ricebox.com | China
Strategy Execution (Hong Kong)
 Interviewed by Financial Times,
Global Sources, Chief Executive
China and In the Black
-- PROFESSOR NEALE O'CONNOR
Neale O’Connor
www.Ricebox.comTop 10 Mega Trends - To understand the China Landscape

2. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
CONTENT
1. Size
2. Quality
3. Four Types of Suppliers
4. The Mind of the Owner
5. Diversification Mentality
6. Buyers
7. Employee Value Proposition Challenge
8. Strategic Factory Location
9. Compliance
10. Relationships and Marketing
Top 10 Mega Trends - To understand the China Landscape

3. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
1. Size
• Enables you to manage economic shocks
• Chinese want to stay small to stay under
the regulation radar
• Tale of the two factories
Neale O’Connor
www.nealeoconnor.comTop 10 Mega Trends - To understand the China Landscape

4. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
2. Quality
• Is it a Challenge or a Response Mindset
• B2B versus B2C Samples
• 10% reject rate not acceptable - where the
incentive/bonus?
Top 10 Mega Trends - To understand the China Landscape

5. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
3. Four Types of Suppliers
• Low cost
• Best in the world
• Learn from foreign buyer
• Get paid
Top 10 Mega Trends - To understand the China Landscape

6. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
4. The Mind of the Owner
• BYD
• 3L Coils
Top 10 Mega Trends - To understand the China Landscape

7. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
5. Diversification mentality
• Touchscreen manufacturer
Top 10 Mega Trends - To understand the China Landscape

8. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
6. Buyer
• Be on the ground and focus on
operational improvement (Apple)
• Collaboration
Top 10 Mega Trends - To understand the China Landscape

9. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
7. Employee Value Proposition Challenge
• Staff turnover and not labor costs
is the big issue
Top 10 Mega Trends - To understand the China Landscape

10. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
8. Strategic Factory Location
• Not on cost alone
• Swiss power adapter manufacturer
Top 10 Mega Trends - To understand the China Landscape

11. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
9. Compliance
• Licensing mentality
• Suppliers are used to selling domestically and
not have to pay for licenses
• 30 suppliers thrown out of the German
tradeshow in 2014
Top 10 Mega Trends - To understand the China Landscape

12. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
10. Relationships and marketing
• Example of the touchscreen manufacturer
Top 10 Mega Trends - To understand the China Landscape

13. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
Neale O’Connor
www.nealeoconnor.comTop 10 Mega Trends - To understand the China Landscape

14. www.ChinaSourcingAcademy.com
CHINA SOURCING
ACADEMY
Neale O’Connor
www.nealeoconnor.com
Q & A
Neale O’Connor
oconnor@hkbu.edu.hk
Top 10 Mega Trends - To understand the China Landscape