Guerilla Business Strategy in ChinaCompete with the Chinese
Get creative to enhance your MarginsManufacturing Services are at the bottom of the food chain - so are usually their margins.Add value added services (Design, Project Management, Marketing, Brand etc.) to increase potential for higher profit.Never forget - You are competing with the Chinese (overheads, supply chain, cost of sales, efficiency, network, payment terms, access to funds ...) Become more Chinese!
Diversify your traditional Business ModelAs local manufacturers often do not deliver consistent quality focus on those clients that had bad experiencesEnforce payments for designs by linking them to improving sales for your clientsTeam up with local partners to enter new opportunities - and ways to act like the ChineseYou need to reinvent your strategies often in China
Generate new types of CustomersChinese look for Brands - you need to have excellent marketing in China.Chinese look for relationships - you need to be omnipresent at events.Chinese may start with a small business, but think big - of future opportunities.Chinese may tell you that you always need to pay - only if you have no other advantages!!
Run your Western company like the Chinese Chinese think different - learn from them about taxes, overtime, job security, career opportunities, lean management, hierarchies, co-operation with government officials, cost of sales and efficiency.Chinese are building satellites, one of fastest computers, iPads and iPhones - dont think they could not also run your company. Develop your competitive values, but dont underestimate the learning curve of your local competitors!