Aasian askeleet - seminaari Pori 19.3.2013 Rising China and Asia Jukka Lohivuo Aluepäällikkö Finpro Varsinais-Suomi, Satakunta ja Ahvenanmaa jukka.lohivuo@finpro.fi Presentation by: Jari Makkonen, Head of Trade Center China (Beijing, Shanghai, Guangzhou, Hong Kong)
Finpro lyhyesti Finpro on maailmanlaajuisesti toimiva asiantuntijaorganisaatio joka auttaa suomalaisia yrityksiä kansainväliseen menestykseen. Finprossa työskentelee noin 400 ammattilaista 68 toimistossa lähes 50 eri maassa. Finpron konsultit hoitivat 1658 toimeksiantoa vuonna 2011. Finpro tarjoaa ainutlaatuisen yhdistelmän toimiala- ja kohdemarkkinatuntemusta, ennakointia ja kansainvälistymisosaamista Finpro on suomalaisten yritysten vuonna 1919 perustama rekisteröity yhdistys, jonka jäseninä on 550 suomalaista yritystä, Elinkeinoelämän Keskusliitto, Suomen Yrittäjät sekä Teknologiateollisuus. Finpro on public-private -toimijana osa Työ- ja elinkeinoministeriön konsernia ja toimii tiiviissä yhteistyössä suomalaisen innovaatioekosystemin toimijoiden kuten ELY-keskusten, Tekesin ja ulkoministeriön kanssa. 19.3.2013 Finpro ry 2
Finpron verkosto Aasia ja Venäjä 3/19/2013 Finpro ry 3
Century of Asia China 22 % Europe 9% Rest of World 4 % Europe 0 % Rest of World 7 % Japan 5 % China 47 % Korea 30 % Japan 35 % Korea 41 % Vessel orders 2005 Vessel orders 2010 Source: Wärtsilä 4
GDP and GDP per capita based on PPP, population in 2010 Source: IMF, World Economic Outlook, Sept 2011 Note: Amounts in current international dollar
GDP and GDP per capita based on PPP, population in 2016 Source: IMF, World Economic Outlook, Sept 2011 Note: Amounts in current international dollar
Sense of urgency 7
Client testimonial The Finnish paradigm: we have the best technology in the world, somebody will come and fetch it from us. They will not. ( Suomessa on lähdetty siitä, että meillä on täällä maailman paras teknologia, kyllä sen joku tulee hakemaan. Ei tule. ) Kalevi Kurkijärvi Chairman of Board HyTest Oy Kauppalehti business newspaper: Succesful companies 2012 Revenue 13 MEUR, net profit 29% 8
Front yard Backyard -challenge Purpose of business life. is to create a customer P. Drucker Front yard - Marketing - Sales - Innovation Back yard - Production - Logistics - R&D Bring income Create cost 9
Customer benefit, topics for sales pitch Turnover how do we make more money together Operating cost how do we make more money together by decreasing operating costs Risks how do we manage risks and make more money ROCE how do we make more money with less capital employed Source: Vectia 10
China challenge of segmentation CAPEX OPEX TCO low-low low-mid mid high Tender parameters Tender parameters Tender parameters Tender parameters Transaction Sourcing Partnering Level of partnership
China s Mid-Market Innovators a new category of competition Low-price, medium-quality B2B companies; from acceptable quality level providers ( good enough ) to high level innovators Mindray Medical International Ltd. Shanghai Electric Group Favourable business environment in China so far: no emergency in other markets (India, Brazil) Major potential threat to well-established global manufacturers Still, many tend to be unaware of their existence Sooner or later forced to rethink their strategies In China high-end market might never get realized! 12
Finnode factory automation / distribution Current way of distribution channel management and end customer intimacy poor Finnish tailor/made solutions should be sold to end customers, OEM and system integrators Conclusions: Finpro, VTT SHG 13
Controlling the whole China? Sole distributor, Shanghai 14
China is a continent! Source: McKinsey 2013 15
McKinsey Quarterly Jan 2013 How to compete in emerging markets To gain economies of scale, many multinationals develop countrylevel strategies for each emerging market where they compete. Yet in China, to give just one example, even nearby tier-one cities can differ radically. Guangzhou and Shenzhen, two urban areas of comparable size, are just 62 miles apart. However, in Guangzhou a majority of consumers are locally born Cantonese speakers, while in Shenzhen more than 80 percent are Mandarin-speaking migrants with diverse tastes reflecting their diverse origins. In an emerging market, global companies should group cities into clusters with common demographics, income distributions, cultural traits, media outlets, and transport links. Then they can gain scale efficiencies by running operations through a unified hub and expanding gradually, cluster by cluster. To learn why this deep approach beats the wide one, read Winning the $30 trillion decathlon: Going for gold in emerging markets (August 2012). 16
Finpro Navigator describing services Planning International Growth Planning Market Entry Establishing a Presence Improving Market Position International Growth Plan Entry Options Partner Search Sales Accelerator Test Drive Sales Channel Development Direct Sales Market Monitor Right Markets Establishing Company Acquisition Candidate Search Finpro Asia: 389 client projects 2012 318 clients 2012 China over 60% of volume Right markets (end customer visits) Partner search, Direct sales, Subcontractor search, Test Drive, Acquisition candidate search main consulting services supplied Finpro Supplier Evaluation Export Partner Groups Trend Pulse 17
Contacts Companies: Finnish Business Council http://www.fbcbj.org/ (Beijing) http://www.fbcs.fi/ (Shanghai) www.fbc.com.hk (Hong Kong) Universities: Tekes China Peking: Kari Hiltunen Shanghai: Jarmo E. Heinonen 19/03/2013 Finpro 18
Welcome to Asia! 19