"winning in china: how smart cork smes succeed" frank o’mahony

13 July 2015City Hall, Cork

Winning in China: How Smart Cork SMEs Succeed

Frank O’MahonyPartner, Wilson Architecture

Wilson (Dalian)Architecture

Design CompanyLimited

Winning Work In China -Experiences of a Cork S.M.E.

Wilson (Dalian)ArchitectureDesign CompanyLimited

‘Oh, East is East, and West is West, and never the twain shall meet ………

……But there is neither East nor West, Border, nor Breed, nor Birth, When two strong men stand face to

face, tho’ they come from the ends of the earth.’ The Ballad of East and West Rudyard Kipling (1865–1936)

Wilson (Dalian)ArchitectureDesign CompanyLimited

•The China Market ………………. Background information

•The China Market ………………..Our experience

•The China Market ………………..Opportunities

Wilson (Dalian)ArchitectureDesign CompanyLimited

• 1,350,000,000 population

•20% of world population on 7% of worlds arable land

•700,000,000 = farmers/rural dwellers 15% of Chinas land is arable

•Major Urbanization Programme

•300,000,000 people will move from rural to urban by 2040

• The 12th 5 Year Plan - Inward Looking and Consumer Driven

Wilson (Dalian)ArchitectureDesign CompanyLimited

China…. Zhung Guo….. The Central Kingdom, a trading civilization for centuries.

Virtually unchanged geographical boundaries, unique in the world.

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Setting up a Company in China

Representative Office

Joint Venture

Wholly Owned Foreign Enterprise

Wilson (Dalian)ArchitectureDesign CompanyLimited

Our Approach to the Market

Entry

“Going Native”…….. Understanding the Culture

People

Food

Business

“Guanxi”

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Understanding the Market

Country of Great Contrasts

Population

Demographics

Needs, Worries and Aspirations

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Market Conditions

Period of Economic Change

Change from Export driven to Consumer Driven

Urbanisation

Ageing Population

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Difficulties we Encountered

•Language Barrier

•Business Contacts are transient, Businesses come and go

•Totally different Business Model

•Easier to buy from China than sell to China

•Everything is done at breakneck speed, must have the resources to cope

•Many people involved in decision making process

•Scams

•Current Government Anti Corruption Campaign is changing the way business is done for the better.

Wilson (Dalian)ArchitectureDesign CompanyLimited

Selected Wilson Projects in China

PuYang VanSun HQ. in DongGang district Dalian

大连东港商务区 普阳万向集团总部大楼

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited

Masterplan for Dalian Port Authority

大连港集团总体规划项目 中国 大连

Head office in Dalian

某集团新办公大楼 中国 大连

Wilson (Dalian)ArchitectureDesign CompanyLimited

Wilson (Dalian)ArchitectureDesign CompanyLimited 31Wilson (Dalian)ArchitectureDesign CompanyLimited Pharmaceutical HQ and Laboratories

Wilson (Dalian)ArchitectureDesign CompanyLimited

TV and Broadcasting Complex

Wilson (Dalian)ArchitectureDesign CompanyLimited

Local Government Administration & Exhibition Head Quarters

Wilson (Dalian)ArchitectureDesign CompanyLimited

Some Growth Sectors

•Pharmaceutical, Medical, Healthcare, Retirement Homes

•Airports and Aviation

•Leisure and Outdoor Activities

•Overseas Travel

•Equestrian Sports……….. and Race tracks?

•Cold Storage Supply Chain

•Quality Food and Dairy Products

•Overseas Education

•“One Road, One Belt Policy”

Wilson (Dalian)ArchitectureDesign CompanyLimited

Summary for Success

•Research the Market

•Assistance from Enterprise Ireland

•Key staff must spend lot of time on the ground

•Must have a Unique Selling Point that is in demand in China

•Capacity to serve a very demanding Market that is a long way from home

•Patience….. Patience…. Patience It can take two to three years to break into the China Market.

Wilson (Dalian)ArchitectureDesign CompanyLimited

.......and Good Luck out there !