How to register an high-tech company in China

The American Office of the statistics (Census) created a category "advanced technologies" which corresponds to products answering the following criteria: the used technology has to stand out from a high-technology recognized sector (for example the biotechnologies, the information technologies) and must be state-of-the-art.

Register as high-tech Company in China

In China, according to SJ Grand, a company cannot register as "high-tech" and to be certified as such as if it enters the categories mentioned above and if she answers the following conditions: at least 30 % of his staff has a level of studies upper or equal to the first university cycle; more than 5 % of the income of its sales is dedicated to the search and to the development (R*D); and more than 60 % of its sales concerns technological services and high-tech products.

Chinese statistics on the business of high technologies

Until 1998, the Chinese statistics on the business of high technologies included the computing and the telecommunications, the life sciences, the aerospace industry and the aeronautics, the electronics, the armament, the industrial automation, the nuclear technologies, the biotechnologies, and the state-of-the-art materials. Since then, the armament and the nuclear technologies do not appear there anymore, but appeared a new category - " other technologies " - which is most probably the combination of the armament and the nuclear technologies.

Not high-tech category could be subdivided into various levels, according to the technological intensity, and to the profit and to the added value which result from it, according to Daxue Consulting leader, Matthieu David. Let us take the example of computers: the first level is the central processing unit and the operating system, dominated by the model Wintel (microprocessors of Intel, operating system and main applications of Microsoft). The second level, which includes elements-keys as integrated circuits, memory chips and screens, presents a higher level of risk but also profit.

Daxue Consulting is a firm which support foreign high-tech investor in China

The lowest third and level is the one of the assembly and the manufacturing of finished products; the technological level is lower whereas the logistic costs are higher, the advantages consist of economies of scale, sales and located services. Apparently, China is essentially limited at this lowest level.

Mysimax is a China-based company looking to provide high-tech in emerging country. Its founder, JX Paulin, who is also an expert on China high-tech landscape, told us the complexity to register a high-tech company in China.

See also: here and here and here

Focus group shows increase of advertising in China

The advertising in China amounts to the 3rd world rank, since 2007. The advertising market is very dynamic: in 10 years, advertising spending increased fourfold showed focus group in China.

Advertising in China

The market is nevertheless unbalanced: approximately 50 % of the investments are always realized in Beijing, Shanghai and in the province of the Guangdong.

The advertising market in China is dominated by small local agencies. Focus groups count more than 140 000 companies of advertising and communication, offering very heterogeneous services.

Attracted by the potential of this gigantic market, the big international advertising agencies are present in China for more than 10 years. Their number moreover doubled in 2006, further to the opening in 2005 of this market to companies of capital 100 % foreigners. These international agencies are in competition with the more successful, local Chinese companies, which benefit from strong local networks.

However, 5 of the first 10 advertising agencies are foreign and some are specialized in focus group in China.

Focus group and Store Check in China

Since November, 2008, the foreign advertising agencies have to have a governmental authorization to exercise focus group and store check in China. These new regulations of the Chinese government, concerning the companies of advertising with only foreign investments, came into effect in November, 2008. It is same for store check in China.

Advertising agencies with foreign capital will have to, from now on; obtain an official authorization, before making a commitment in any conception, production, and publication in the sector of the advertising in China, as well as focus group.

A Sino-foreign joint-venture can be created only on condition that the shareholders are companies of the sector and in service since more of 2ans.

To create a company of advertising with capital foreign 100 %, the investor will have to be a company the advertising of which is the main "business purpose" and in service since more of 3ans.

A company of advertising, in foreign capital, cannot ask to establish a subsidiary in China only if its capital is completely freed and that sound THAT annual is equal or upper to 20 million RMB (2 million Euros).

www.thestorecheckers.com

http://daxueconsulting.com/consulting-advertise-china/

Matthieu David Experton

Focus group in China : Milk market can rise again

According to focus group in China, this product, which benefits from the healthy image of the yoghurt but frees itself from constraints connected to the cold chain, passed from 0 to 500 M € of figure of affair in five years - the billion is aimed for 2015, and benefits from a 60 % gross margin. Among other categories susceptible to grow strongly over the next years, focus groups quote the h-milk, the drinks with yoghurt and with milk, the desserts and the milky snack bars, the organic products.

Importation of milk from New-Zealand to China market

Other opportunity: the Chinese market structurally has a deficit in milk, pulling imports which could quadruple by 2018. Today, these imports are very dependent on New Zealand; importers are avid to diversify their supplies, and ready to establish partnerships with new sources if quality and traceability are assured, said focus group in China.

In this context, the consolidation and the modernization of small Chinese producers also establishes a lever of value creation.

Focus group shows dynamism of online channel

Last track: the dynamism of the digital channels, waited increasing by 60 % a year over the next years, is a great deposit for the international groups. Naturally, the presence on the main sites of e-commerce is inescapable; but it is possible to go much more far to term of commitment of the consumer: for example, why do not to imagine a mobile application allowing, from personal data (weight, size, age, activities, medical balance sheets) to identify dairy products the most adapted for one or his children, and to integrate them immediately into his basket on its site of favorite e-commerce? This idea come from focus group in China and seems very promising in this market.

All these construction sites are in the course of opening, whether it is by the Chinese giants whom are Yili, Mengniu and Bright, or by the big dairy groups of Europe and Asia Pacific. These invest significant amounts in the development of new products (center of R*D created in China by Arla in 2014), and with new channels(canals) (e-commerce for the infantile milk of Fonterra in 2014). Now the French groups have to position, if they want to grow in a profitable way on the Chinese market.

大学Consulting

http://blogs.wsj.com/economics/2014/04/11/chinas-milk-demand-squeezes-global-supply/

http://www.reuters.com/article/2013/12/16/us-china-dairy-fonterra-idUSBRE9BF1CR20131216

http://wfoebeijing.blogspot.com/2014/05/sj-grands-expert-team-on-wfoe-in-beijing.html

Sportswear in China

Several Chinese brands already fight for the right to represent Jeremy Lin, the young American with origin in China who awarded a diploma by Harvard which has just offered the victory in New York Knicks.

Sponsorship development in China through Lin

Xu Zhihua, managing director of Peak Sport Products Co Limited, a manufacturer of sports clothes settled in the province of Fujian, went to the United States the last week and has to meet Linen to discuss a partnership agreement.

"Our CEO met Linen in New York, but I do not absolutely know if they spoke about a contract ", declared Liu Xiang, public relations director of the brand.

Mr. Liu indicated that Xu went to the United States to attend the opening of the first store Peak in New York last Thursday.

Other manufacturers, including Li Ning Co Ltd and Qiaodan Sports Co Ltd, also showed their interest for Linen, but refused to make the slightest comment before the signature of contracts.

The biggest obstacle for the Chinese manufacturers is that Linen signed a contract of three years with Nike in 2010.

The on-line sellers do not however lose a moment.

Promotion through sportswear

"His linen uniform is already a best-seller in my online shop ", declared a seller nicknamed Chen, who sells uniforms of the players of the NBA on Taobao.com.

Chen explained that he had sold 426 linen shirts on Monday afternoon, but that he had not received the goods of his supplier yet.

The young man became the focus of the world press. It made the cover of the last number of the American magazine Time, having appeared on the cover of Sports Illustrated and Daily News.

Teams of Invest Hong Kong, the branch of the government of the administrative region of Hong-Kong in charge of the promotion of the investment, that they are based in Hong-Kong or on the continent, are delighted to be able to help Xtep in his projects of expansion in and by Hong-Kong, he added.

http://daxueconsulting.com/sportswear-market-in-china/

http://www.nytimes.com/2014/03/18/business/international/chinese-sportswear-makers-see-signs-of-growth.html?_r=0

Focus on entrepreneurship in Africa

In several African countries, as in Mali, the way of the entrepreneurship is a solution favored by numerous young people to try to make a career.

Group of entrepreneur in Africa

«If I had not made that, I do not really see what I would have been able to make of other one ", notices Hamidou, young Malian entrepreneur who created his company of electronics with his brother five years ago. The first motivation of the young people comes by way of an acknowledgement of impotence: the work is lacking, the studies are only few or not valued, then, it is necessary to create to survive. The Forum of Bamako, which was held until February 15th in the capital, put, for several years, the entrepreneurship at the heart of the debates where the professionals meet the students and the researchers. This year, as Mali tries to reconstruct economically after two years of conflict, it takes a particular importance.

«There is already very numerous companies which work in this way in Africa, my idea are different ", underlines Madjissem Beringaye. This young leader of company wishes to open a center of entrepreneurship and experimental innovation during year 2015: ten young entrepreneurs will be selected to integrate the incubator and will benefit then during one year of an accompanying in the process of development of their project. One of the keys of the success in its spirit, it is to bet on the training: in theory, 25 bearers of project will benefit every quarter of training in the accounts department, in the legal procedures of new business start-up, in the elaboration of the business plan. The best entrepreneurs stemming from the training will integrate then the experimental center. «About 120 young people will be every year formed and accompanied. It represents so many families, communities, villages, which will be made sensitive in the necessity of taking care and of beginning. "

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http://www.china-entrepreneurship.com/meeting-entrepreneurs/interview-jx-paulin-founder-of-dbx-international-mysimax/

JX Paulin

Branding in China

The branding is a marketing term to indicate the brand-building with the aim of making known and sell its products.

How to do a good branding strategy in China

One of the big weaknesses of the Chinese companies is the branding. Chinese have difficulty in developing their brands and see in it a limited interest. We can however underline that the Chinese government actively promotes national brands. The purpose is to support the domestic consumption. The great majority of the brands have not made progress yet because they are in break with the image of a brand national, considered as a lower quality.

However the certain Chinese brands set up a national recognition.

It remains an important challenge for many foreign companies, which have for the greater part, many to develop badly brands appreciated by the Chinese consumers. But the biggest challenge remains the development of the brand image for the Chinese societies on their own market. Their big problem is the investment on the long term for the creation of good will, notion still little known in China.

It's a pity, because the Chinese consumers are very sensitive to the value mark; real capital confidence and means of social recognition.

Chinese try to imitate European Branding in China

The majority of the Chinese companies turn to the European or American typical branding to make their products known. This fashion consists in letting know the origin of the brand which, in China, translates the quality. Carrying products the label Made in Hunted for antiques trainmen still the reputation of a bad quality, even by the local consumers. So, the advertising executives recommend to their customers to show and to associate western faces with the launched products. These enjoy then a better image and increase their fame with consumer. Furthermore, this quality security allows to establish a high-end positioning in mind of the Chinese.

This Europeanized and Americanized touch is enough to give a luxury image to the company. In brief, the Chinese product is communicated to the Westerner and this tendency confirms more and more.

http://www.marketing-chine.com/conseils-marketing/le-branding-en-chine

http://daxueconsulting.com/branding-china-2/

http://www.youtube.com/watch?v=QIjM0MmmE7g

Chinese market support the whole worldwide market of technology

The sales of the electronic properties increased by 16 % in the first quarter, pulled in particular by television sets and PC.

Technology in China

From the beginning of year, the Chinese consumption of electronic and computing products terrifies the statistics. According to GfK, the sales of electronic products ("smartphones", television sets, PC) jumped up with 16 % in China in the first quarter, and weigh from now on the 19,61 billion euro trinket. Of what to allow the Middle Kingdom to post one of the strongest world growths, better than rest of Asia (+ 13 %), that the Western Europe (+ 2 %) and what the United States. «Seen its weight in the world market, China participates widely in the bounce of the electronics industry ", judge GfK.

In a few years hardly, China raised itself on the first places  of the electronics industry. First world market of desktop computers, second on the segment of laptops, the third on television sets LCD (behind the United States and the Western Europe) … The Chinese buy massively, even if the equipment rate remains still low in this country of 1,3 billion inhabitants.

This year, the population rushes in particular at the flat screens. The Chinese market should reach the 59 million units sold in 2012, is an annual growth of 14 % according to a study published last week by the American cabinet Display Search. Better, China should become, according to Display Search, the first world market of television sets LCD from next year onwards. Actually, sales are supported by the ageing of the installed park. " In China, the purchase of color televisions really soared on the environment of the 1990s.

Besides the increasing urbanization 65 million Chinese of campaigns should join small and average cities in the next five years and the rise of the standard of living, the industry also benefits of the program of subsidies the purchase of electronic and household electrical devices in the rural zones, launched in February, 2009 to face the crisis. A measure which also benefits in the purchases of computers. According to Gartner, the sales of PC should again grow of 22,4 % in 2010, in particular pulled by LAPTOP PCS.

Tablets in China

The fact remains that this cake is not accessible to all the industrialists. Among ten bigger sellers of PC in China, half are Chinese builders: Lenovo arrives far in head with 25 % of market share according to Gartner. Manufacturers as Founder Electronics (6 %), Tongfang (3 %), Great Wall Computer (2 %) and Haier (2 %) are also in the Pip(Top) 10. It is however foreign groups which posted(showed) the strongest growths between 2008 and 2009: the Taiwanese Asus, the number five in China, sales of which jumped up with 72 % and the American Hewlett-Packard, the number two of the market which sold 65 % of units in more the last year.

In this part, France has a card to play. French are not the most effective regarding wholesome technology but the French knowledge is very famous regarding originality or strategy for example. The abilities of the French start-up are very required for the 3D displaying, the post-production or the edition.

Envie d'entreprendre

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