The Settling and Growth Challenge in Hong Kong and South China

An implementation process is always a challenge. In the case of Hong Kong the challenge becomes easier to deal with thanks to the magnificent business conditions and the excellent work of many public and private institutions, which together provide the foreign company a wide range of support services that allow you to feel more sheltered and avoid unnecessary risks. However, the first few months of any project remains a challenge.

A company that comes new to the market has to face, from the first months, to decisions that can profoundly affect the profitability and even the very future long-term project. These early decisions are essential and, however, be taken when the knowledge and the local structure of the company have not yet been developed. This disproportion between the importance of the decisions on the one hand and the knowledge and operational capacity by another cause it is a particularly sensitive time, it is very easy to make mistakes.

To succeed in a market must be very above the operational and constantly monitor what you are doing the new office.Here comes the biggest challenge, the physical and cultural distance makes it difficult to decide how to start the business.One common option is to expatriate someone. But this option is a significant investment for a company. The person may be expatriated often married with children, which makes the operation more complicated. The contract has to be in the longer term worth, salary has to be higher, negotiations are longer and delays. That leads many companies to decide to discard this option and instead, hire a local person.

But not having market presence often hire people they barely know (or those who know by contact but do not necessarily meet the profile). He chooses to work with acquaintances rather than experts.

Being aware of the risk of hiring someone who do not know often opt for low wages or profiles more junior , which leads to lack of motivation and results that can trigger distrust between the central office and the new office. Given this risk, there are companies that directly choose not to have anyone stationed here and looking to offset this lack of presence with more or less regular trips that end up assuming a major expense not always rentabilizable.

In other cases, the company aims to have a local partner that meets local office function, however that forced to sign long-term agreements that limit the action of the company is, for better or worse, tied to a contract before knowing how their products behave in the market. Each of these strategies can be a success or a failure depending on the circumstances. Each option has pros and cons and there is no universal answer to these questions, each company must know your business and its growth potential and make the decision it deems proper.

However, if it is possible to isolate the essence of the dilemma and try to see how to reduce the risks to which companies are subject. Ultimately, the dilemma is summarized in that if the company does not invest in the project results will be disappointing, whereas if you invest and make a mistake, error costs can affect the profitability of the project and even make it unfeasible. And the key to avoid mistakes is to know the business environment, but that is precisely what is lacking in the company. Thus the essence of the challenge is summarized in how to achieve presence, local knowledge and contacts keeping the budget under control and not enter into long-term agreements to maintain the flexibility to cope with changes. The key is always to decide the appropriate structure, with constant monitoring of spending and with a team who can make the most of the business.

In TradeWinds spent years advising European and Latin American companies in these decision-making processes.Throughout the time we have been developing specific services aimed at meeting the needs of the company, depending on the time of implantation is found and the objectives you have. These services are summarized in three types: Business Development, Management, Consulting and customer support staff. All these services are raised in blocks of three months and a fixed budget so that the company can easily evaluate if you are interested or not and how many resources you want to dedicate to the project.

Business Development: For companies that have not yet been implemented or have just done recently. We provide business development services. These services combine the two key elements: consulting and operational capacity. After analyzing the client’s project we make a proposal that includes business plan development and creating a team with European and Chinese staff dedicated customer. This equipment is higher or lower profile and more senior or more junioraccording to the project and budget. Having decided on the business plan and the characteristics of the team that will handle the project, our clients have unlimited access to counseling and the use of professional time devoted to the project, so that this equipment works full-time as if were employees of the client, providing your company the operational capacity in Hong Kong and southern China, which is essential in the first months of operations. At the end of each block of three months, the company decides whether to keep the same structure, expand, change the profile of the team or decide not to renew. With budgets starting from 3000EUR a month for three months, the client achieved knowledge, structure, stable budget and flexibility to adapt expenses or structure. All with a very affordable costs and lower than alternative options.

Representation: For companies that already have a presence and have steady sales but that does not take enough advantage of the market due to lack of presence and supervision, offer less focused on consulting services and project launch and more focused on business (existing customer relationship and finding new customers). This way the commercial performance of existing lines quickly and easily improve rentabilizable. Again, this line works with a system of work teams to three months away and closed budgets.

Advice and support staff : Finally some companies have decided to expatriate expatriate someone but has no specific knowledge of how to do business in Hong Kong which can take some time during which productivity is lower. For these clients we offer the option to advise, support and train expatriate staff to accelerate this learning curve and that only a month have the skills and productivity that would normally take months or years to develop. In this way the company can accelerate its process of implementing many of the risks limiting.

These services can be purchased separately or in sequence and thanks to them the company has a key instrument with which to meet the challenge of the first month of release. Once a project is completed the client can choose if you decide to go it alone and have us available as external advisors, or if you want to reach an agreement on long-term collaboration.

As a Hong Kong company Spanish property we are especially pleased to contribute to Hong Kong’s trade relations and Spanish-speaking countries and especially to work with CW CPA, highly regarded firm with which we share a great friendship.

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