jlj consulting solutions for china entry & growth 2012

JLJ CONSULTING

Solutions for China Entry & Growth

2012

JLJ Consulting Overview


Sample Case Studies

Sample Case Studies

How We Can Help

How We Can Help

Copyright @ 2012 The JLJ Group. All rights reserved.

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JLJ CONSULTING ONE OF FOUR IN-HOUSE DIVISIONS OF THE JLJ GROUP

Market Research & Consulting

Set–up Advisory, Corporate Formation,

Tax & Accounting

Solutions for ChinaEntry & Growth

Consulting FDI

Div

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Staffing Solutions

Recruitment

Payroll & HR Outsourcing

HR Outsourcing

The JLJ Group is a one-stop service provider assisting international companies with their mission to enter and grow in the China market

The JLJ Group is a one-stop service provider assisting international companies with their mission to enter and grow in the China market


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SERVICES MATCH THE VARIOUS STAGES OF A CLIENT’S MOVE INTO THE CHINA MARKET

Thanks to our corporate structure, we are also able to assist with services beyond consulting (e.g. tax & accounting, payroll services, etc.)

Thanks to our corporate structure, we are also able to assist with services beyond consulting (e.g. tax & accounting, payroll services, etc.)

Cli

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Research Entry Growth

• Market Research & Assessment

• Regulatory Environment Analysis

• Partner Search & Due Diligence

• Entry Strategy Consulting

• Competitive Intelligence/Analysis

• Location Analysis

• Market Research & Analysis

• Management Consulting

• Consumer / Customer Surveys

Investigate the market Establish a presence in China Grow in the China market


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FIVE ‘PILLARS’ TO JLJ’S PROJECT EXECUTION METHODOLOGY

Obtaining accurate information in China is especially difficult due to the size of the country, lack of reliable sources and the fact that the economy is in

constant flux; therefore JLJ uses a combination of the above to gather data

Obtaining accurate information in China is especially difficult due to the size of the country, lack of reliable sources and the fact that the economy is in

constant flux; therefore JLJ uses a combination of the above to gather data

Project Background

Project Background

Secondary Research

Secondary Research

Primary ResearchPrimary

ResearchInformation

AnalysisInformation

Analysis

“Wearing the Client’s

shoes”

“Wearing the Client’s

shoes”

• Critical to establishing the proper starting point

• Defines the deliverable in light of client needs and expectations

• Executed in both Chinese and English

• Can be executed in multiple Chinese dialects and/or English

• Critical for projects in China

• Experience accrued during over 200 market research and consulting projects

• Experienced in modeling, etc.

• Critical to answer questions that may not be addressed in original scope of project


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• Overseas international professionals from the U.S., Italy, Hong Kong, etc.

• Bring international perspective and standards to consulting process

• Overseas international professionals from the U.S., Italy, Hong Kong, etc.

• Bring international perspective and standards to consulting process

• Local knowledge and experience overseas

• Bringing multiple perspectives to the team and projects

• Local knowledge and experience overseas

• Bringing multiple perspectives to the team and projects

• Local team throughout China

• Bringing knowledge of various Chinese regions

• Local team throughout China

• Bringing knowledge of various Chinese regions

MULTI DIMENSIONAL TEAM PROVIDES 360o PERSPECTIVE

Local Chinese

Team

Overseas Returnees

Overseas Professionals

Consulting


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In his nearly 8 years in China at The JLJ Group, Alessandro has advised hundreds of foreign clients (both companies and governmental organizations) on a variety of strategic and tactical issues in dozens of industries covering both Business-to-Business as well as Business-to-Consumers. Alessandro is regularly invited to speak at seminars and conferences in China and around the world on number of China-related topics.

He speaks fluent Italian, English and Spanish and is conversational in Mandarin, French and German.

Alessandro holds a degree in Management Engineering from Politecnico di Milano (Italy), and an MBA from Northwestern University's Kellogg Business School (Chicago, USA).

Alessandro has extensive strategy & management consulting experience and strong global perspective gained on three continents - Asia, Europe and America.

His business experience spans from top international firms to start-ups, including The Boston Consulting Group (a global management consulting firm), Barilla (Italy's leading food company) and Auripay.com (a Boston-based e-payment company).

PARTNER BRINGS BEST PRACTICES FROM BOSTON CONSULTING GROUP


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While at JLJ, Mark has helped manage and execute dozens of consulting and market research projects covering a number of industries, including F&B, FMCG, luxury goods, retail, and agricultural products. Additionally, Mr. Ray has delivered several seminars on Chinese business practices, HR management, and China tier 2 cities.

Mark holds an MBA from American University's Kogod School of Business, located in Washington DC, with an emphasis on Finance and International Economic Policy, and a BA in History (emphasis on Asia) from the University of Tennessee, Knoxville.

LOCAL TEAM LEAD BY INTERNATIONAL MANAGER

Project output up to international standardsProject output up to international standards

Mark has extensive market research and consulting experience, as well as comprehensive international experience gained in the US, Europe and China.

Prior to joining JLJ, Mark worked at several leading US companies and government agencies including Freddie Mac, Countrywide Financial Corporation and the US Department of Commerce - International Trade Administration.



Sample Case Studies

Sample Case Studies

How We Can Help

How We Can Help


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MARKET RESEARCH & OPPORTUNITY ANALYSISMedical Devices

Team had to execute a number of interviews with key players (e.g. hospitals, distributors, EMS staff, etc.) as well as engage in significant secondary

research to fill key gaps in the data

Team had to execute a number of interviews with key players (e.g. hospitals, distributors, EMS staff, etc.) as well as engage in significant secondary

research to fill key gaps in the data

Project Overview: The study involved the mapping out of the China healthcare system to determine the usage and technology of heart rate monitors used as well understanding key competitors in the market. The scope of the study included a market overview, competitor analysis and a review of the client's existing channel structure. Specifically, the study focused on the following five tasks:

Project Overview: The study involved the mapping out of the China healthcare system to determine the usage and technology of heart rate monitors used as well understanding key competitors in the market. The scope of the study included a market overview, competitor analysis and a review of the client's existing channel structure. Specifically, the study focused on the following five tasks:

Map out the overall market structure (e.g. private and public hospitals, primary care, and EMS Services)

Map out the overall market structure (e.g. private and public hospitals, primary care, and EMS Services)

Identify opportunities in patient monitoring by segment Identify opportunities in patient monitoring by segment

Provide analysis of existing channels such as sales team and distributorsProvide analysis of existing channels such as sales team and distributors

Benchmark key competitors and identify key strengths and advantagesBenchmark key competitors and identify key strengths and advantages


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MARKET SIZING AND ENTRY STRATEGYPremium Food & Beverage Consortium

Team executed over 200 consumer interviews and dozens of in-depth interviews; a significant amount of modeling for market sizing also performed

Team executed over 200 consumer interviews and dozens of in-depth interviews; a significant amount of modeling for market sizing also performed

Project Overview: The study involved the estimation and forecasting of the market size and future potential of super-premium beef and lamb in all four regions of China. The scope of the study included a market overview, consumer research, customer research, full supply chain analysis from producers, importers, and distributors to five-star hotels and high end restaurants. The study aimed at answering the following questions:

Project Overview: The study involved the estimation and forecasting of the market size and future potential of super-premium beef and lamb in all four regions of China. The scope of the study included a market overview, consumer research, customer research, full supply chain analysis from producers, importers, and distributors to five-star hotels and high end restaurants. The study aimed at answering the following questions:

Identify market size and potential for super-premium lamb and beef marketIdentify market size and potential for super-premium lamb and beef market

Determine consumer preferences for beef and lamb (e.g. grain vs. grass fed)Determine consumer preferences for beef and lamb (e.g. grain vs. grass fed)

Evaluate supply Chain (including Grey Channels) and identify potential partnersEvaluate supply Chain (including Grey Channels) and identify potential partners

Recommendations for market entry location and legal setupRecommendations for market entry location and legal setup


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CONSUMER RESEARCH AND BENCHMARKINGPremium Consumer Durable Household Goods

Team performed Central Location Test in 3 cities to intercept individuals for consumer surveys using stringent screening tests while executing in-depth benchmarks of other

companies; second phase of the project included product trials and FGDs to test advertising concepts

Team performed Central Location Test in 3 cities to intercept individuals for consumer surveys using stringent screening tests while executing in-depth benchmarks of other

companies; second phase of the project included product trials and FGDs to test advertising concepts

Project Overview: Focus of the overall project was to assist a premium mattress company already in the China market expand their growth. The scope of the project included consumer research through CLT intercepts as well as focus groups and product trials in three Tier 1 cities. A secondary scope of the project was to benchmark companies in similar positions to determine “what they do” in China. The study aimed at answering the following questions:

Project Overview: Focus of the overall project was to assist a premium mattress company already in the China market expand their growth. The scope of the project included consumer research through CLT intercepts as well as focus groups and product trials in three Tier 1 cities. A secondary scope of the project was to benchmark companies in similar positions to determine “what they do” in China. The study aimed at answering the following questions:

Determine the mattresses consumers are currently using and pricesDetermine the mattresses consumers are currently using and prices

Analyze preference in mattress type through product trials in 3 citiesAnalyze preference in mattress type through product trials in 3 cities

Through focus groups, determine best advertising concepts for TV commercialsThrough focus groups, determine best advertising concepts for TV commercials

Identify what other companies in premium consumer durables are doingIdentify what other companies in premium consumer durables are doing


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PARTNER SEARCH AND MEETING SETUPEnergy Efficient Metal Processing Equipment

Team had to not only execute a market feasibility study and overview but also set up meetings with PE/VC companies willing to invest in an SME with advanced

technologies within the limited project time frame

Team had to not only execute a market feasibility study and overview but also set up meetings with PE/VC companies willing to invest in an SME with advanced

technologies within the limited project time frame

Project Overview: The study involved an analysis of China’s aluminum extrusion industry and an analysis of potential partners for foreign companies with advanced “clean” technologies. The scope of the project included a market overview (demand and supply side), identification of key manufacturers of extruded aluminum products and the identification & meeting setup with PE and VC firms willing to invest in a foreign SME. The study aimed at answering the following questions:

Project Overview: The study involved an analysis of China’s aluminum extrusion industry and an analysis of potential partners for foreign companies with advanced “clean” technologies. The scope of the project included a market overview (demand and supply side), identification of key manufacturers of extruded aluminum products and the identification & meeting setup with PE and VC firms willing to invest in a foreign SME. The study aimed at answering the following questions:

Estimate the overall market potential for aluminum billet heaters Estimate the overall market potential for aluminum billet heaters

Determine if it was feasible to enter the China market based on demand forecastDetermine if it was feasible to enter the China market based on demand forecast

Identify VC and PE companies to invest in SMEs with advanced technologyIdentify VC and PE companies to invest in SMEs with advanced technology

Set up and support meetings with both government and private PE / VC funds Set up and support meetings with both government and private PE / VC funds


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COMPETITIVE INTELLIGENCE PROJECTProduct Certification Industry

Project involved a significant amount of primary research and investigation to estimate turnover by service (estimate based on number of engineers in each service); team also analyzed 7 secondary competitors although to less depth

Project involved a significant amount of primary research and investigation to estimate turnover by service (estimate based on number of engineers in each service); team also analyzed 7 secondary competitors although to less depth

Project Overview: The study involved an analysis of our client’s top five competitors in the China market through competitive intelligence. The scope of the project included identifying each company’s organizational structure, geographic concentration, turnover, number of engineers, etc.. The study aimed at answering the following questions:

Project Overview: The study involved an analysis of our client’s top five competitors in the China market through competitive intelligence. The scope of the project included identifying each company’s organizational structure, geographic concentration, turnover, number of engineers, etc.. The study aimed at answering the following questions:

What services are offered by each of the top 5 competitors in China?What services are offered by each of the top 5 competitors in China?

What is the turnover of each of the top five competitors by service?What is the turnover of each of the top five competitors by service?

What is the organizational structure of each of the top 5 competitors?What is the organizational structure of each of the top 5 competitors?

Identify other key activities or information of value for each company?Identify other key activities or information of value for each company?


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M&A TARGET SEARCHWaste Water Treatment Industry

Project involved a significant amount of primary research and investigation to determine which companies met the screening criteria and to eventually set

up meetings between the client and the target companies

Project involved a significant amount of primary research and investigation to determine which companies met the screening criteria and to eventually set

up meetings between the client and the target companies

Project Overview: The project involved multiple phases where JLJ scanned the China market for potential acquisition targets based on a set of client criteria. The scope of the project included screening potential targets at each project phase and determining the suitability of waste water treatment plants for potential acquisition by considering ownership structure, treatment capacity, etc. through extensive primary research; eventually JLJ set up meetings between the client and the top potential targets. The project focused on the following areas:

Project Overview: The project involved multiple phases where JLJ scanned the China market for potential acquisition targets based on a set of client criteria. The scope of the project included screening potential targets at each project phase and determining the suitability of waste water treatment plants for potential acquisition by considering ownership structure, treatment capacity, etc. through extensive primary research; eventually JLJ set up meetings between the client and the top potential targets. The project focused on the following areas:

Scanning China market for wastewater treatment facilitiesScanning China market for wastewater treatment facilities

Profile each of the facilities based on Phase 1 screening criteriaProfile each of the facilities based on Phase 1 screening criteria

Phase 2 developed detailed profiles of companies passing Phase 1 screeningPhase 2 developed detailed profiles of companies passing Phase 1 screening

Screened Phase 2 companies and set up meetings between clients and top targetsScreened Phase 2 companies and set up meetings between clients and top targets



Sample Case Studies

Sample Case Studies

How We Can Help

How We Can Help


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MARKET RESEARCH AND ENTRY STRATEGY

Based on market research, JLJ Consulting can develop an effective entry strategy for foreign clients considering China market entry

Based on market research, JLJ Consulting can develop an effective entry strategy for foreign clients considering China market entry

CLIENTCLIENTKey Services:•Market overview

•Feasibility study

•Regulatory analysis

•Import process

•Supply chain analysis

•Location and entry options analysis

•…

Key Services:•Market overview

•Feasibility study

•Regulatory analysis

•Import process

•Supply chain analysis

•Location and entry options analysis

•…

Consulting


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IDENTIFY PARTNERS FOR SOURCING, DISTRIBUTION, FUNDING, JV, ETC.

JLJ can scan the market based on client criteria for potential partners, vet those partners and facilitate introductory meetings

JLJ can scan the market based on client criteria for potential partners, vet those partners and facilitate introductory meetings

CLIENTCLIENTPOTENTIAL

CHINESE PARTNER

POTENTIAL CHINESE PARTNER

Key Services:•Vet potential partners

(Sourcing, distribution, JV, funding, importers, potential customers, etc.)

•Conduct business due diligence

•Facilitate meeting set up

•…

Key Services:•Vet potential partners

(Sourcing, distribution, JV, funding, importers, potential customers, etc.)

•Conduct business due diligence

•Facilitate meeting set up

•…

Consulting


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CONSUMER RESEARCH AND BRAND PERCEPTION

Experienced in executing face-to-face surveys throughout as well as utilize online platforms and FGDs1 to capture useful insights for our clients

Experienced in executing face-to-face surveys throughout as well as utilize online platforms and FGDs1 to capture useful insights for our clients

CLIENTCLIENT CHINESE CONSUMER

CHINESE CONSUMER

Key Services:•In-depth face-to-face interviews

•Central Location Testing

•Online questionnaires

•Focus group discussions

•…

Key Services:•In-depth face-to-face interviews

•Central Location Testing

•Online questionnaires

•Focus group discussions

•…

Consulting

1) FGD – Focus Group Discussions


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WHAT ELSE CAN WE DO? Examples

Provide high-level advice on various China-related issues such as:

• China market entry & growth strategies

• Regulatory updates relevant to foreign investments

• Market trends in key industries

Share experience & expertise at events

Contribute relevant articles to print/online publications

Provide regular information and updates of developments in China

Host delegations visiting China

Launch joint research projects on specific topics/industries in China

Coordinate meeting for trade missions or delegation

…


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FIVE KEY REASONS TO CHOOSE JLJ

Client reference available upon request

1. Providing best solutions is our priority Professional service at competitive rates International professional standards + effective local execution

2. One-stop-shop services provider Legally licensed to provide services through in-house specialized divisions Can provide services along Entry & Growth development stages Can provide 360°approach to clients’ needs

3. Strong knowledge & expertise of the China market 16 years of experience in China, through our divisions Hundreds of projects executed in virtually every industry

4. Talented, diverse and well-balanced team International Management Team Diverse team made up of local Chinese, Chinese returnees and overseas staff All key functions covered - strategy, marketing, HR, sales, finance, operations,

government relations, etc.

5. Solid track record with long-term and recurring clients 1. 600+ clients served from 30+ countries, from government organizations & NGOs to

institutional investors, SMEs and Fortune 1000 companies2. New clients often referred by old clients


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Shanghai OfficeSuite 603-605

Oriental Center

699 Nanjing West Road

Tel: +86 21 5211 0068 Fax:+86 21 5211 0069

Beijing OfficeSuite 2002, Building 1

Blue Castle International Centre

3 Xi Dawang Road, Chaoyang District

Tel: +86 10 6582 0268 Fax:+86 10 6582 0251

THANK YOU FOR YOUR ATTENTION!China Offices:

[email protected] www.JLJGroup.comShanghai • Beijing • Boston • Milan


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EXPERIENCED IN WORKING WITH GOVERNMENT, SME’S AND FORTUNE 1000 COMPANIES


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EXPERIENCE IN MULTIPLE INDUSTRIES

• Agriculture

• Automotive

• Chemicals & Special materials

• Environmental & Energy

• Fast Moving Consumer Goods (FMCG)

• Food & Beverage (F&B)

• Industrial Equipment & Products

• Media & Entertainment

• Medical/Dental Equipment & Device

• Health & Fitness

• Human Resources

• Information Technology / High Tech

• Logistics, Warehousing & Transportation

• Luxury Products & Services

• Pharmaceuticals

• Retail & Franchising

• Regulatory environment

• Real Estate

• Shipbuilding & Marine Management

• Telecom & Telecom Equipment

• Textile & Garment

• …

jlj consulting solutions for china entry & growth 2012

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