February 04, 2012
 

 


The InterChina Insight serves as our platform to share our views on investment, market and functional topics related to doing business in China. Current and archived articles are listed below. We welcome you to download and print them ready to read in a quiet moment.

Current Edition

  
Chinese Machine Tool Producers
  The machinery and machine tool sectors would seem to have all the elements present for the rapid emergence of a strong and leading domestic Chinese industry. However, in our view, it is more likely that Chinese companies will remain stuck in the lower and medium segment of the market for quite some time to come, while the incumbent global players will be battling for global leadership, and will do so increasingly in China, the world’s largest market.

With this article, we present a comprehensive White Paper that explains why it will still take 30 years for most Chinese machine tool players until they reach the level of leading international competitors.
  Long Nanyao (InterChina) PDF  | EN  |  2011-11-10

  
Diagnosis for growth: MNC pharma companies in China will face layoffs
  Although China’s pharmaceuticals market will grow at over 20 percent p.a. over the next few years, many US and European MNCs are contemplating a change of strategy which is expected to result in substantial staff reductions in 2012 and 2013. This is the result of a business unit structure which feature larger sales teams specialized on products.

Despite seeing their sales still increasing, many MNCs are now preparing to abandon their current structural strategy. Many specialized sales direct teams failed to outperform other international companies that partnered up with local dealers and distributors, and are rather inefficient. In our article, we provide a diagnosis of the current headaches of the MNC business unit structure, and what potential solutions could be applied.
  Yu Jingyi (InterChina) PDF  | EN  |  2011-10-27

  
Cornering China's Market
  The hypermarket and supermarket business in first-tier cities is fast reaching saturation, with fierce competition between stores and little room left for newcomers. So the international chains are now turning to China’s hundreds of smaller cities, tapping the consumption growth that’s emerging across the country.

Yet this expansion is exposing new challenges. China has hundreds of local hypermarket and supermarket chains, each with their own territorial stronghold, and many with aggressive growth ambitions.

As this battle between the international and local chains plays out, the hypermarket and supermarket sector will be significantly transformed. Many FMCG companies are wondering whether today’s frontrunners will be the ones left standing when the dust eventually settles.
  James Sinclair (InterChina) PDF  | EN  |  2011-08-25

  
The Battery Bubble
  Foreign investors, beware: The overly-optimistic outlook on China’s EV battery production industry may be more alluring than the hard reality proves to be. InterChina believes that China’s hype around this industry cannot further be sustained by the country’s own technological capacities and investment. In addition, it is very likely that foreign investment needs to be a joint force to drive the industry forward.

Some existing challenges are still alarming to foreign investors, and a careful evaluation of commitment level should be taken. The article explores the major reasons behind the business case and presents a fair argument for foreign investors to use in their own decision-making process.
  Long Nanyao (InterChina) PDF  | EN  |  2011-07-13

  
When the wind blows: China’s wind power sector is trading up
  China became No.1 in terms of installed wind power capacity by the end of 2010, surpassing the U.S. China’s wind power market is expected to grow in the next 5 to 10 years as pushes to further increase its total wind power capacity. Foreign wind turbine components makers can enjoy great opportunities in the China market thanks to increasing demand for more high tech and high quality parts, but they have to manage their strategy well.

  Simon Zhang & Jack Yu (InterChina) PDF  | EN  |  2011-06-23

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