doing business in asia
DESCRIPTION
Presentation material from Finpro Growth Market seminar in Turku October 22 2012.TRANSCRIPT
Doing Business in Asia
Jari Hietala
Finpro’s Global Network – Asia and Russia
30/10/2012 2 © Finpro
Finpro’s Global Network – Australia, Malaysia,
Philippines and Singapore
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Sep 2009 © Finpro ry
Finpro’s Network in China
Key Facts 2011
Finpro Asia
• Aprox. 200 clients
• Aprox. 400 assignments
• China’s share 50%
• Focus Industries: ICT, Cleantech, Life Sciences, Forest- and
Maritime clusters, Engineering companies, Services
• Typical assingments:
– Sales channel development, Sales Accelerator
– Company establishments (the whole process)
– Selecting the right markets
30/10/2012 5 © Finpro
10/30/2012 Copyright @ 2010 FinChi 6
FINCHI – a platform of optimizing your
value in China entrance
Plug & Play style of equipped office space
State-of-art services assist your daily operation
Full access to local contacts and bussiness networking
No Registration or Injection Capital needed, but all local activities could
be realized with FinChi turn-key solution. www.finchi.cn
FinChi Innovation Center - www.finchi.cn
The Importance of Asia For
Finnish Companies
30/10/2012 8 © Finpro
Why to Asia?
WORLD GDP 2050
• According to Goldman Sachs, this is the most likely scenario of
World GDP in 2050
– Note the position of Asian countries
2050
Asia looks set to return to its natural
“half share” of the world economy
11
Source: Angus Madison’s “Historical Statistics for the World Economy:1-2004AD”, Deutsch Bank Global Market Research
Asia and Finland in 2010
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Australia
China
Hong Kong
India
Indonesia Japan
Korea
Malaysia
Philippines
Singapore Thailand Vietnam
Finland
-0,2
0
0,2
0,4
0,6
0,8
1
1,2
1,4
1,6
-10 0 10 20 30 40 50 60 70 80
Po
pu
lati
on
(b
illi
on
s)
GDP based on PPP per capita (thousands)
Asia and Middle East in 2010
The bubble size indicates GDP based on
PPP in 2010. The bubble size indicates
also the country's share of the total GDP
of all countries included in the graph.
Source: IMF, World Economic Outlook, September 2011
Note: Amounts in current international dollar
Asia 2016
3/4/2012 © Finpro 13
Source: IMF, World Economic Outlook, Sept 2011
Note: Amounts in current international dollar
Australia
China
Hong Kong
India
IndonesiaJapan
South KoreaMalaysia
Philippines Saudi Arabia SingaporeThailand
UAE
Vietnam
-0,2
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
-10 0 10 20 30 40 50 60 70 80
Po
pu
lati
on
(b
illi
on
s)
GDP based on PPP per capita (thousands)
Asia and Middle East in 2016E
The bubble size indicates GDP based on PPP in 2010. The bubble size indicates
also the country's share of the total GDP
of all countries included in the graph.
Finland’s exports and imports with Asia in 2010
0
500
1000
1500
2000
2500
3000
3500
4000
China Hong Kong Indonesia India Japan South Korea Malaysia Philippines Singapore Thailand Taiwan
Imports
Exports
Billions of Euros
Finnish Exports to Asia 2011 (excl. India)
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Special Charasterics of Asian Markets
• There is no one homogenous Asian market – analyze and select the right
markets for your company and products
• There is one common feature in all Asian markets: the Chinese business
culture – it’s not what you know but who you know – invest to establish and
maintain your personal contact network, Guanxi
• There are a lot of so called “opportunistic” trading houses, which are eagerly
looking for principals and suppliers from all over the world for example at trade
fairs
– It is not a big challenge to find a sales channel representative for any
company – the real challenge is to get business going
• Often the channel partners would like to represent your products in several
markets in Asia. Watch out as this has very seldom proved to be successful
• Verify your partners’ Guanxi
• There are also several Finnish (and European) channel partners available –
easy and safe option perhaps, but how does your end customer value them
compared to truly local companies?
• Asia is full of trading houses whose main sales argument is the price – it is
challenging to find partners capable for value selling
Thank You!
30/10/2012 17 © Finpro