1. business and industrial
2. company
3. joint venture

HOW TO DEVELOP A SUCCESSFUL JOINT-VENTURE IN CHINA
is a business unit of
Joint-Venture in China
WHAT IS A JOINT-VENTURE
SIMPLY PUT, A JOINT VENTURE (JV) IS NOTHING MORE THAN AN ECONOMIC
COOPERATION, OR BUSINESS COMBINATION, OF TWO OR
MORE PEOPLE,
COMPANIES OR ASSOCIATIONS WITH A COMMON ECONOMIC GOAL
A SHARING OF RISKS AND PROFITS IN A SPECIFIC PROPORTION, COUPLED WITH A
CONTRIBUTION OF EXPERTISE AND ASSETS TO THE JV, WHETHER THOSE ASSETS
BE HUMAN CAPITAL OR MONETARY CAPITAL UNDER CERTAIN DEFINED
CIRCUMSTANCES
THE JV MAY BE LIMITED IN TIME, OR MAY HAVE NO TIME LIMITATION, ALTHOUGH
MOST JV ARE LIMITED IN SCOPE, LIMITED TO THE EXPERTISE OF THE JV PARTNERS
IT IS QUITE COMMON FOR A JV TO HAVE SOME FORM OF TIME LIMITATION SUCH AS
A PRELIMINARY PHASE, WITH PRESCRIBED TIME LIMIT WITHIN WHICH THE JV MUST
ACCOMPLISH MINIMUM GOALS UNDER CERTAIN DEFINED CIRCUMSTANCES
IF THOSE TARGETS ARE MET, THEN THE JV AUTOMATICALLY PROCEEDS TO
ANOTHER PHASE OR A PERMANENT PHASE, SUBJECT TO EARLY TERMINATION
UNDER CERTAIN DEFINED CIRCUMSTANCES
is a business unit of
Joint-Venture in China
JOINT-VENTURE:
A STRATEGIC MODE OF ENTRY
FOR DEVELOPING NEW BUSINESS
IN CHINA
MARKET RESEARCH
MARKET INTELLIGENCE
MARKET ENTRY STRATEGY
MARKETING STRATEGY
DISTRIBUTION CHANNELS
1
AGENTS &
DISTRIBUTORS
SELECTING POTENTIAL
LOCAL PARTNERS
2
REPRESENTATIVE
OFFICE
3
INVESTING IN
FOREIGN MARKET
JOINT VENTURE
WHOLLY FOREIGNOWNED ENTERPRISE
NEGOTIATING TERMS
AND CONDITIONS
IT’S A GO!
OK TO PROCEED AND COMMERCIAL OPERATIONS
START IN SELECTED MARKETS IN CHINA
SCHEDULING VISIT TO
FOREIGN MARKET
is a business unit of
4 STRATEGIC REQUIREMENTS
FOR SUCCESS WHEN DEVELOPING
A JOINT-VENTURE IN CHINA
1
Joint-Venture in China
HIRE A GOOD CONSULTANT, AND GOOD LOCAL MANAGERS!

START BY HIRING A GOOD INTERNATIONAL BUSINESS
CONSULTANT TO DESIGN AND DEVELOP A FOREIGN MARKET
ENTRY PLAN STARTING WITH MARKET RESEARCH, MARKET
ANALYSIS, MARKET INTELLIGENCE.
HE WILL BE YOUR RELIABLE CONTACT REPRESENTING YOUR
INTERESTS IN THE JV IN CHINA AND MONITORING YOUR LOCAL
PARTNER WILL COMPLY WITH THE JV AGREEMENT.
 THEN HIRE AND TRAIN GOOD LOCAL MANAGERS, INSTILLING A
SENSE OF LONG-TERM INVOLVEMENT.
YOU NEED THEM TO BE LOYAL!
THIS IS A “MUST” CONDITION FOR SUCCESS!
2
PLAN TO INVEST IN THE LONG TERM!
 DO NOT EXPECT QUICK PICKS.
 SUCCESS DOES NOT HAPPEN OVERNIGHT, AND YOU WILL NEED
TO INTEGRATE YOUR CULTURE INTO THE LOCAL CULTURE AND
BUSINESS ENVIRONMENT
is a business unit of
4 STRATEGIC REQUIREMENTS
FOR SUCCESS WHEN DEVELOPING
A JOINT-VENTURE IN CHINA
3
Joint-Venture in China
CREATE AN EFFECTIVE MARKETING PLAN!
 ACKNOWLEDGE, ACCEPT, RECOGNIZE THAT CHINA IS A
DIVERSE COUNTRY, AND NOT A SINGLE NATIONAL MARKET
 ADAPT TO THE UNIQUE “LOCAL” VALUES AND CULTURAL
DIFFERENCES BY DEVELOPING DISTRIBUTION, AND DESIGNING
MARKETING STRATEGY AND ADVERTISING MESSAGES
ACCORDING TO THE NEEDS OF LOCAL MARKETS
 ADJUST THE MIX AND ATTRIBUTES OF YOUR PRODUCTS TO THE
NEEDS OF THE LOCAL MARKETS, AND TAKE INTO ACCOUNT ALL
DIFFERENCES WHEN DESIGNING YOUR MARKETING STRATEGY
4
FOCUS ON YOUR CORE COMPETENCES!
“SIMPLY” ASK YOURSELF THE FOLLOWING QUESTIONS:
 WHAT DO WE OFFER CUSTOMERS THAT WILL ATTRACT THEM?
 HOW ARE WE DIFFERENT FROM POTENTIAL COMPETITORS?
 WHAT CAN WE DO WELL IN CHINA, AND WHAT CAN CHINESE
COMPANIES DO BETTER?
is a business unit of
Joint-Venture in China
STEPS FOR DEVELOPING
A JOINT-VENTURE
NEGOTIATION WITH THE
SELECTED JOINT-VENTURE
PARTNER
LEGAL PROCEDURES FOR
JOINT-VENTURE
JOINT-VENTURE COMPANY
MARKET RESEARCH
MEMORANDUM OF
UNDERSTANDING
DEFINITION
IDENTIFICATION OF
J/V PARTNER(S)
JOINT-VENTURE
AGREEMENT
MANAGEMENT
STUDYING AND
EVALUATING OPTION(S)
ANCILLARY
AGREEMENTS
OPERATIONS
NEGOTIATION
REGULATORY
APPROVALS
DUE DILIGENCE &
BUSINESS VALUATION
BUSINESS PLAN
is a business unit of
Joint-Venture in China
STEPS FOR THE SUCCESS OF
A JOINT-VENTURE
IN BRIEF, HERE’S THE PATH TO SUCCESS:
 AGREE ON THE STRATEGY
 AND, ADAPT THE STRATEGY TO:
 EVOLVING EXTERNAL CONDITIONS
 AS WELL AS TO NEWLY CREATED INTERNAL CAPABILITIES
 DESIGN THE METRICS TO DETERMINE HOW WELL THE
STRATEGY IS BEING IMPLEMENTED
 COMMUNICATE A COMMON VISION
 OFFER INCENTIVES TO MOTIVATE EMPLOYEES TO IMPROVE
COLLABORATION AND DELIVER RESULTS
 TALK OPENLY ABOUT DIFFICULTIES, AND
 RESOLVE POSSIBLE DISPUTES
 SHARE INFORMATION
 WORK COLLABORATIVELY AND PRODUCTIVELY TO ACHIEVE
BENEFITS OTHERWISE NOT ACCOMPLISHABLE
is a business unit of
Joint-Venture in China
THE COMPETITIVE ADVANTAGE OF
THE JOINT-VENTURE
COMPETITIVE ADVANTAGE
TANGIBLE
INTANGIBLE
INTELLECTUAL PROPERTY
RIGHTS
STRONG BRAND
EXCLUSIVE LICENSE(S)
LEADERSHIP
KNOWLEDGE & SKILLS
TEAMWORK
ORGANIZATIONAL CULTURE
TEAMWORK
ORGANIZATIONAL CULTURE
is a business unit of
INTERNATIONAL
COMPANY
LOCAL
PARTNER
COMPANY IN
CHINA
THIS SET
OF
DISTINCTIVE
CAPABILITIES
CANNOT BE
IMITATED
BY
COMPETITORS
Joint-Venture in China
BALANCED SCORECARD
OPERATIONAL
EFFECTIVENESS
REVENUE
MAXIMIZATION
LOYALTY
OPERATIONS
LEARNING
AND GROWTH
EARNINGS
GROWTH
LOYALTY
VALUE
CREATION
HUMAN
CAPITAL
EXCEED
EARNINGS
EXPECTATIONS
CAPTURE
MARKET SHARE
VIA LOCAL
DISTRIBUTION,
RETAIL,
INTERNATIONAL,
AND INTERNET
SALES
DEVELOP AND
KEEP LOYAL
CUSTOMERS
INTERNAL
BUSINESS
PROCESS VALUE
CHAIN
PRODUCTIVITY
INCREASE
PROFITABILITY
IMAGE
CONSISTENCY
ATTRACT AND
RETAIN TOP
TALENTS AS
CONSULTANTS,
MANAGERS,
LOCAL &
INTERNATIONAL
AGENTS
AND
DISTRIBUTORS
REVENUE
MANAGEMENT
DELIVER
PRODUCT
BRAND
PROMISES
IMPROVE COST
STRUCTURE
is a business unit of
INNOVATION
R&D
OPERATIONS
SERVICE
CHINA
DOMESTIC
SALES
INTERNATIONAL
SALES
INTERNET
SALES
DEVELOP
STRATEGIC
SKILLS:
TRAINING
FOSTER A
DIVERSE
WORKFORCE
Joint-Venture in China
平衡计分卡: 统一公司职能
运营效力
收益最大化
忠诚度
运作
学习和成长
利润
发展
忠诚度
价值创造
人力资本
超越盈利预期
生产率
通过区域批发，零
售和国际、网络销
售取得市场份额
寻找和保持忠诚客
户
增加利润率
形象一致性
内部商业进程价值
链
创新
研发
运作
服务
中国国内销售
优化成本结构
收益管理
传递品牌承诺
培养关键技术：
培训
国际销售
网络销售
is a business unit of
吸引和保留高级
人才担任经理，
国内国际代理人
和经销商
培养有多面能力
的员工队伍
CHINA: NO LONGER AN “EMERGING MARKET”
is a business unit of
China
CHINA: NO LONGER
AN EMERGING MARKET
FOR THE FIRST TIME IN 2010,
ASIA DID GENERATE MORE NEW DEMAND THAN THE U.S.A.
THE GLOBAL ECONOMY WILL INCREASINGLY BE DRIVEN BY ASIAN
NATIONS, ESPECIALLY CHINA, WHICH MUST DELIVER MORE GOODS
AND SERVICES TO ITS OWN MIDDLE CLASS
Consumers account for nations’ GDP:
Savings as % of household income:
271
1,110,000
300,000,000
170,000,000
CHINA
35%
37.5%
U.S.A.
70%
3.6%
billionaires (China ranks #2 behind USA with >400)
millionaires (China ranks #3 behind USA and Japan)
“middle class”
purchase top luxury brands
CHINA’S EXPORT-FOCUSED ECONOMY IS GIVING WAY TO A
CONSUMER-DRIVEN MARKET MORE QUICKLY THAN MOST COMPANIES
THINK
is a business unit of
China
CHINA: NO LONGER
AN EMERGING MARKET
CHINA IS TODAY THE WORLD’S LARGEST OR SECOND-LARGEST CONSUMER
OF A VARIETY OF PRODUCTS:
GLOBAL RANKING #1
GLOBAL RANKING #2
AUTOMOBILES
22%
INTERNET USE
63%
MOBILE PHONES
22%
CONSUMER ELECTRONICS
15%
LUXURY GOODS
19%
JEWELRY
13%
SHOES
12%
HOME APPLIANCES
12%
BIKES & MOTORCYCLES
7%
is a business unit of
China: an Export-Focused Economy
CHINA:
AN EXPORT-FOCUSED ECONOMY
A CONSUMER-DRIVEN MARKET
INTRA-EUROPE
INTRA-NORTH AMERICA
6.5
ASIA-EUROPE
NORTH AMERICA-ASIA
ASIA-NORTH AMERICA
INTRA-ASIA
7
1.4
5.4
11.5
11.5
44
EUROPE-ASIA
4.9
ASIA-MIDDLE EAST
INTRA-SOUTH AMERICA
3.4
1.4
2.9
ASIA-SOUTH AMERICA
8
ASIA
IS
MOVING
BEYOND EXPORTING
TO
THE
WEST.
TODAY ITS PORTS
MAINLY
HANDLE
CARGO
MOVING
WITHIN THE REGION.
ASIA-AUSTRALIA
Numbers represent millions of 20-foot
(6 m.) shipping containers
Source:: Harvard Business School, HBR, June 2011 “What the West Doesn’t Get About China”
is a business unit of
Hotel Development in China
CHINA HOSPITALITY:
NEW HOTEL DEVELOPMENT IN
THE 3-YEAR FROM 2010 TO 2012
Year
Number of
hotels
Increase in
%
Number of
rooms
Increase in
%
2005
2.156
14%
524.733
12%
2006
2.457
14%
591.926
13%
2007
2.186
15%
672.198
14%
2008
3.165
12%
756.498
13%
2009
3.428
8%
837.748
11%
2010
2011
2012
3.662
7%
913.399
9%
3.799
4%
957.175
5%
3.877
2%
984.655
3%
Hotel development in the
3-year from 2010 to 2012
449 new hotels
146.907 new hotel rooms
is a business unit of
2*, 3*, 4*, and
5* hotels
Natural Health Products in China
HEALTH FOOD IN CHINA:
2001-2010 RETAIL SALES REVENUE
& GROWTH RATE
1200
50%
40%
38.2%
1000
100
30.1%
91.1
800
74
13.3%
11.1%
600
47
400
28.5
30
34
45
9.8%
50
9.8%
-4.3%
-4.3%
-29.8%
29.8%
200
20
0
2001
1000
2002
2003
2004
2005
Sales Revenue (RMB billion)
is a business unit of
2006
2007
30.1%
2008
2009
2010
Growth Rate %
TREND IN IMPORTED WINE AND
DOMESTICALLY PRODUCED WINE
IN CHINA
The Wine Market in China
RISING TREND IN IMPORTED WINE IN CHINA
is a business unit of
RISING TREND OF CHINESE WINE
(DOMESTICALLY PRODUCED)
FOR INFO ON:
● MARKET ENTRY / INTERNATIONALIZATION / JOINT-VENTURE PLANS IN CHINA
● MARKET ENTRY / INTERNATIONALIZATION / JOINT-VENTURE PLANS IN ASIA
● BUSINESS DEVELOPMENT PLANS IN ASIA
● FDI (FOREIGN DIRECT INVESTMENT) OPPORTUNITIES IN ASIA
● SINGAPORE COMPANY REGISTRATION
120 Telok Ayer Street
Singapore 068589
www.start2asia.com
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