China has stirred up lots of foreign investment for their economy. Having a population of 1.3 billion and a land area slightly smaller than the USA, China is indeed a good opportunity to develop into an investment port. Over the years, China has been booming into the world’s factory with industries ranging from manufacturing, telecommunications, automobiles and etc.
Now, China has received the most coverage compared to any other developing nations around the world. The advancement of China market has been increasing in such a rapid rate that nobody wants to give a miss at a chance to jump the bandwagon of China’s prospering economy.
China’s Foreign Trade Department of the Ministry of Commerce (MOFCOM) said that China’s government had approved 44,001 new foreign-invested ventures in 2005 and China had a trade surplus of $177.5 billion in 2006.
“China’s sound and steady economic growth continues to attract international funds into the capital markets in the region.” said Frank Lyn, China market leader at PricewaterhouseCoopers.
However, even though there is an increasing number of a foreign investment in China, the government is also supporting the growth of their domestic industry. As China develops into a global market, the government is also encouraging the growth of domestic industries to take the chance to go global especially with the upcoming Beijing 2008 Olympic Games.
However, this may not be a piece of good news to other foreign companies who are planning to enter into China market. Not only would the foreign companies have to establish their brand presence in China, they will have stiffer competition from the local companies. In the other hand, with the increasing financial economy of China, the Chinese consumers are becoming more affluent compared to the past and thus the purchasing power of the locals have increased over the years. The Chinese no longer seek for just basic products but they are purchasing more luxurious products such as automobiles and higher-end fashion.
Domestic competition would not be the end of foreign companies’ problems when they try to enter into China’s market. With the main issue of language barrier, many foreign investors do not have the ability to communicate with the locals which causes frustration for both parties. Hence, foreign companies would need to be familiar with the Chinese language and culture before entering China market.
China may be a fountain of opportunities but foreign companies need to put in a lot of effort to ensure that their entry to the China market would not end up a huge loss to their company. Many successful foreign investors have worked with business consultants and research firms to ensure that their marketing strategies would be apt for the China market.
Many articles online have featured on the topic of “guan xi” According to Le Figaro September 1997,”Guanxi: literally “locked system” or “relations”. Personal and friendly relations, without it nothing is possible in China. “Guanxi” takes time to build and calls for constant attention.
The Chinese regard “Guanxi” as the foundation of a successful business deal. Thus, foreign companies often have problems with business negotiations as they do not have the network with the locals. Thus engaging locals who are well-versed with both the foreign and domestic culture will be a bridge for those foreign companies. These locals would have the ability to communicate better as they are more familiar with the Chinese culture. Any problems with the higher authorities would be resolved when a local party is able to help with the paperwork.
By: Alina Hoon
Archive for November, 2009
Issues That Foreign Investors May Face When Entering China Market
November 28th, 2009The Specialized Public Relations New York Firms Provide Must Utilize Social Media During Times of Crisis
November 25th, 2009Just about everybody is buzzing about social media and its implications for the practice of public relations. Not just the specialized public relations New York area firms offer, but in the world at large. While a number of New York-based public relations firms have created practice areas devoted to social media, others have added social media initiatives to existing practices to offer clients a complete arsenal of marketing communications tools. However, the rise of social media has greatly impacted the area of crisis communications and we at Makovsky + Company, a New York public relations and investor relations firm, offer insights into how you can safeguard your company’s reputation in this brave new world.
First, a look at what’s changed from a crisis standpoint since the rise of social media. In years past, when traditional media were the primary delivery vehicle for the dissemination of news and information, a company typically had a little time to implement their crisis communications program. With the advent of social media and the increasingly powerful position it occupies in the in the media world, all of that is changing. Social media is immediate and viral — rumors and news can spread rapidly throughout the Internet via blogs, Twitter, Facebook, and YouTube, informing the traditional media (often, journalists housed at traditional media outlets will maintain blogs that are updated with a degree of frequency).
In addition, the media landscape is also changing. With the well-publicized cutbacks at newspapers and other traditional media, there is a void which is being filled by bloggers, who outnumber traditional journalists by a wide margin. Also growing into the millions are the numbers of Facebook, YouTube and Twitter users.
In essence, this means you — as a practitioner of public relations New York based companies turn to — must be ready to respond instantaneously to protect the reputation of your client’s company and/or products. We offer a checklist on how to utilize social media in your crisis communications planning:
* Monitor — Know the high-authority bloggers who cover your industry and diligently monitor what they are saying about you and your industry. This could serve as an early warning detection system as to emerging issues.
* Identify Allies — While it is always a good idea to keep your enemies close, you should have a good idea of who your company’s potential supporters are within the digital world. These are relationships worth cultivating as they could become “ambassadors” for your company in times of crisis.
* Utilize Social Media — Having an active presence in the realm of social media can assist greatly in building your company’s reputation and marketing its products and can also be utilized to deliver key messages to a variety of constituents during troubled times. Think of this effort as building a reservoir of good will.
* Be Mindful of Disclosure — Corporate disclosure within the SEC’s guidelines is important. All communications via social media should be vetted by legal counsel and, of course, should involve your company’s investor relations department to avoid inadvertent disclosure.
* Update Your Crisis Program — Basically, your crisis communications plan should be updated frequently and, perhaps with greater frequency given the rapidly changing world of social media.
The emergence of social media has forever altered the landscape of the battle. While a crisis once take hours to unfold, companies can now find themselves engulfed in a troubling situation in the time it takes to click a mouse. Makovsky + Company is among the public relations firms to pioneer to use of social media in business-to-business applications. The firm understands the critical importance of integrating online and traditional campaigns to ensure your company’s reputation is protected in the online marketplace. As a result, it has forever changed the practice of public relations New York financial services and healthcare companies expect and rely upon.
By: Kevin Waddel
Real Estate Investors: The 7 Things You Should NEVER Do as Part of Your Private Lending Program
November 24th, 2009t of our private lending coaching program we spend a lot of time showing students what to do. But we also show them many things NOT to do to stay out of trouble. Please find below the top 7 things you should never do as part of your private lending program.
1. NEVER Assume You Know Your State Regulations – I would say the number one thing any real estate investor should do before getting involved with private lending is to READ your state securities regulations. I know this is not easy reading, or fun, but simply reading the regulations and understanding your requirements can prevent a major and costly mistake. If you are not going to read the regulations you should, at least, consult an attorney about what is allowed and not allowed in your state.
If you are not sure how to get your regulations simple go to Google and put in “securities regulation” and your state and they should be at the top of the list.
2. NEVER Fail to Submit any Required Paper Work – Once you have read your state regulations you may be required to do nothing (great), you may be required to file a notice with the state or register with the state securities department. Either way, be sure to understand your requirements and make sure you follow them and file the correct paper work.
3. NEVER Advertise on the Internet – You should never advertise on any internet site directly for investors or make an offer to invest in a specific property. There is nothing wrong with offering free information or educational material as a “door opener”. But do not advertise directly for investors on site like Craig list or other bulletin boards.
4. NEVER Have a Web Site for Private Lenders – Again this relates to 3 above in that you should never advertise directly for money or investors on your own web site. You can offer advice or education but nothing more.
5. NEVER Use Out of State Investors – Never use out of state investors unless you have filed the proper registrations with the federal SEC.
6. NEVER Advertise in Newspapers – Never advertise in newspapers because you cannot be certain who is reading the paper. The person could be from another state and federal regulators could deemed that as a cross state solicitation and require you to register with the federal SEC. You can also never be certain if the person reading the ad is qualified for the investment.
7. NEVER Use These 5 Words in Your Advertising – Never use these 5 words in your advertising including Guarantee(d), Low Risk, Secured, Safe and Risk-free. All of these terms will attract the attention of the federal or state SEC organizations as potentially false or misleading advertising of securities for sale.
By: Michel Lautensack
