1. Selling the Right Products to the China Market
Elaine Ann
President/CEO Kaizor Innovation Nov 25, 2008
Private and Confidential
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- How many been to China? 1st time?\n\n- Canadian\n\n\n
- Distribution channel\n- Setup office\n- Hire Managers\n- Sell Products \n\n- Creativity and Innovation\n
- Distribution channel\n- Setup office\n- Hire Managers\n- Sell Products \n\n- Creativity and Innovation\n
Helped MNCs, Mainland China, local HK companies, \nHelped Startups:\nLooking for good collaborators, equity \n
Sensormatic uses the following strategy framework: SETI (Dale)\n- Social\n- Environmental\n- Technological\n- Information\n
1. Our expertise is in China design research and also Interaction Design\n2. We can help bridge social, cultural, behavioral, political understandings\n\n3. And also provide training for foreign companies with \nChina R&D teams on innovation and design research methods.\nOur company also have a team of bi-cultural people working on China research and design. \n\n-------\nAs you can see, China has 23 provinces, \nits so big and fast growing \nthat it would make more much economic sense for our clients \nto have us over in China to help feel the pulse and be close the market. \n\n-------\nits so big and fast growing \nthat it would make more much economic sense for our clients \nto have us over in China to help feel the pulse and be close the market.\n \n--------------\nChina has : 23 provinces, 5 Autonomous Region, 2 Special Administration Region, 4 Municipalities\nwhile U.S. 50 states \n\n\n\n\n----------------------------------------------------------------------------------------------------------------------------------\n\n*** how many counties in China?\n*** how many states in U.S.?\n\nIn particular:\n1. Our expertise is in China design research and also Interaction Design\n2. We can help bridge social, cultural, behavioral, political understandings\n\n3. And also provide training for foreign companies with \nChina R&D teams on innovation and design research methods.\n\nOur company also have a team of bi-cultural people working on China research and design. \n\nAs you can see, China has ____ counties, \nits so big and fast growing \nthat it would make more much economic sense for our clients \nto have us over in China to help feel the pulse and be close the market.\n \nKaizor capabilities\n\nBenefits:\nSave time, fast rate of change\nCulture and language\nBi-culture insights\nCulture language\nInnovation and interaction\n\nTraining courses\n
Let me give you some background information about China\nas a context for what I will talk about today\n\nChina has 1.3 billion people\nthat is 8 zeros\n\n----------------------------------------------------------------------------\nPopulation 1.26 billion \nSource: the National Bureau of Statistics of China ”2003 National Population Yearbook” \n
Group students into provinces (color coded)\n Group different disciplines and genders together\n Teams of 5 (12 teams = 60 people)\n Introduce themselves to each other (if do not already know)\n Each get a China map\n\nExercise 1:\nIdentify as a team provincial advantages in National and Global context\nEach team use creative way to “design city’s policies” to attract investments\ntaking advantage of local advantages.\n
Expressive space like in a fashion magazine\n\nIn Shenzhen\n
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Disinfectant cabinet to sterilize dishes after hand-washing\n
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Sensormatic uses the following strategy framework: SETI (Dale)\n- Social\n- Environmental\n- Technological\n- Information\n
Localization\n
Chinese version of Kentucky\n\nSoya Bean Milk\nTaiwan\n
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Chinese traditional pharmacological principles to reduce internal heat,\n\nCase 2: China's traditional herbal tea beverage packaged in fashionable cans sells better than Coca Cola in the Chinese market in 2005 ---- > foreign beverage company needs to understand China market\n \nGuangdong Province in south China will produce 3.5 million tons of herbal tea in 2006, as compared with Coca Cola's output of 3.17 million tons in 2005. e.g. Wanglaoji, the biggest herbal tea brand \n \nhttp://english.peopledaily.com.cn/200607/20/eng20060720_285121.html\n \n \nhttp://news.51qe.cn/UploadFiles_5873/200805/2008052018503345.jpg\n \n \n
Case 1: Danone vs. Wahaha ----> perceptual gap in understanding IP & Joint-venture agreement\n \nDanone\n- French food company with multiple joint ventures set up in China\n- selling consumer products from fruit juice, dairy products to bottled water\n \n- All of Danone's JV partners are Chinese market leading brands.\n\nWahaha\n- beverage producer\n \nJoint-Venture\n- Danone owns 51% of the JV, founder of Wahaha the rest\n \nDispute:\n- Danone is accusing Wahaha of trademark infringement in manufacturing and marketing beverage products under the same Wahaha brand outside of the joint venture which has exclusive right to such trademark\n \n----- >Lesson learnt to Western business owner:\nBe aware of the perception, understanding differences of intellectual property rights in Mainland.\n \nDanone regards this as trademark infringement,\nWahaha sees this as "foreign invasion" of a well-known established China brand,\nand ask all distributors to act together to protect this Chinese company\n \n
Sensormatic uses the following strategy framework: SETI (Dale)\n- Social\n- Environmental\n- Technological\n- Information\n
Sensormatic uses the following strategy framework: SETI (Dale)\n- Social\n- Environmental\n- Technological\n- Information\n
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Disclaimer: not judging cultures, comparing\nLook into how and why Chinese operate the way they do as it relates to Ethnographic Research in China\n\nPlato, Confucius\nIndividualistic/Collectivist\nLogic and Scientific/Relationship oriented\n\nImplicit communication:\nExpect Reciprocity: gifts and helping each other out\n\n\nWest – asks why?\n
