40-4 |
The formula for success: Global market entry into China |
T. DELPHIN, Global Connections, 5108 Elkmont Dr., Rancho Palos Verdes, CA 90275-2346 China, the most populous country in the world with 1.3 billion people, is undergoing dramatic changes as the world's largest and fastest growing economies. As the slowdown grips the economy in the US and Europe, Japan and the rest of Asia, China seems immune to it all and is growing at 7-8% this year. China seems like the only bright spot on the planet! With its WTO membership early next year, more barriers to business will tumble, including tariffs, offering more opportunities than ever before to US companies interested to expand business operations into that country. The food industry in China has not reached the level of sophistication of the US, hence there are many opportunities for food and beverage processors, particularly in convenience foods, bakery, meat, dairy, and nutritional products, and food service. The cheaper supply of food ingredients will give Chinese food industry a competitive edge in the world market place. Since 1996, the food industry in China has been enjoying double digit growth. Companies planning to expand their horizon of opportunities beyond US border, face complex issues involving risks and rewards. The key to success depends on knowing your market, understanding and adapting to local conditions, and implementing a realistic and sound business plan. The paper addresses what to expect when you enter into the global marketplace and practical tips on what pitfalls to avoid, and shares key success factors of foreign food companies operating in China today.
Session 40, The wisdom of outsourcing and the virtual office in the new millennium (Part 1)
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