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News Release from: Tangull | Subject: China success
Edited by the Processingtalk Editorial
Team on 25 July 2005
Success of foreign companies in China?
Only 20% of the small and medium sized foreign companies in China are profitable, despite the enthusiasm still widely touted by industrial groups: a new business model may help
Only 20% of the small and medium sized foreign companies in China are profitable According to the result of a Tangull market survey over 80% of the foreign small and medium sized companies in China have not earned money by now
This article was originally published on Processingtalk on 18 Nov 2004 at 8.00am (UK)
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This result is unexpectedly poor compared with the recent enthusiasm for Chinese ventures, which are mostly touted by the large corporate groups.
In contrast, the small and medium sized foreign enterprises lost their money in this over $1.66 trillion, huge market.
Divided by countries, the Finnish companies have the worst experience, only 10% of them say that they have achieved their business goals.
Respectively 19% of the German and 24% of the French companies say that they are successful in the fastest growing economy in the world.
The Americans are doing a little better, about 28% of them are already profitable.
The best rate of success belongs to the Koreans and the Japanese, of whom about 40% are satisfied with their business in China.
The main reasons are the different economic systems, and unfamiliarity with the business cultural and communication obstacles.
A new business model is aimed at helping the small and medium sized companies to benefit from the China market.
The "Shared Overseas Representative Model", developed by Tangull Group, combines the advantages of the agent and the direct investment.
The foreign companies contact the Tangull representatives in USA or Europe and the Tangull branches in China will act immediately as the representatives of the foreign companies.
They work out market and sales plans for the entrusting clients and carry out the business in the name of the clients.
Through weekly reports, the clients can also learn the actual market development and provide customer feedback.
This model is designed to save the immense amount of investment and the loss caused by the improper operation of international business.
This survey is carried out by Tangull Market Information Department through surveys, interviews and other resources, covering over 2,000 small and medium sized foreign companies in China.
Tangull Group is a multi-national company with offices in America, Asia and Europe, having long time international business experiences and rich market intelligence resources.
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