China Expert

By Gregory Sy and Currie Lee

3. Filing Requirements
Within fifteen days from executing the first franchise agreement, the franchisor must file with MOFCOM, specifically if the franchising activities take place within a single province, autonomous region or municipality under the central government (Beijing, Shanghai, and other major cities), then with the MOFCOM of that province, autonomous region or municipality under the central government; or if franchising activities take place in more than one province, autonomous region or municipality, then at the national level MOFCOM.

Thereafter, the relevant MOFCOM will have ten days to properly file all completed filing, and publish them on its website.

However, it is necessary to note that the franchisor must, within 30 days of any change potentially impacting the filing, apply for an alteration of its filings. Read the rest of “Guide to franchising in China part 2″ or post a comment

By Andrew Hupert

International companies in Shanghai and the rest of China are growing so fast that sometimes you can’t wait for management to notice you and make plans for your future. In fact, you are best off taking charge of your own career.

One way for young people on China sales and marketing teams to take charge of their jobs is to develop a specialty or valuable expertise.

Specialization #1: Client Orientation. Boost your career by building a client specialty. You will make yourself an expert in handling a specific type of deal, transaction or market – anything that brings you in contact with a Read the rest of “China Sales & Marketing Leaders: Make Your Promotion Happen” or post a comment

By Shaun Rein
This commentary is based on an article published in Business Week

While U.S. private equity investment is expected to remain flat in 2008, China should register 30%-plus growth for the next three years. With the current credit crunch roiling financial markets, private equity firms in the U.S. and Europe are finding it hard to tap the credit they need to fund their acquisitions. According to Dealogic, the value of buyouts dropped almost 90% in the U.S., from $216 billion in the second quarter of 2007 to only $22.1 billion in the final quarter. In contrast, private equity in China continues to boom. China received $12.8 billion in private equity investment in 2007. In 2005, investors allocated only $5 billion to the country. Capital under management hit $20.5 billion last year, an increase of 40% over 2006, according to Beijing research firm Zero2IPO.

My firm, the China Market Research Group, conducted interviews with managers at several dozen leading private equity firms in the U.S. and China to see if China is likely to remain a hot market for private equity, or if the credit squeeze will hit the region, too. Our findings showed optimism for investment in China. The vast majority of respondents felt that U.S. private equity investing will remain flat or drop in 2008 while China will post 30%-plus annual growth for the next three years. Read the rest of “China’s Private Equity Boom” or post a comment

By Ron Cune

Coming from a country such as Holland, people are not used to others bragging about money or possessions. A good dose of self-confidence is considered healthy and it’s totally acceptable to talk about personal achievements as long as we avoid talking about materialistic success. Being proud of your expensive car in front of the door, talking about prices of a newly bought boat or mentioning the price of wine to your guest will more than likely bring you the opposite of respect.

In China it’s exactly the opposite; many Chinese hosts “show off” with their 2 or even 3 newly bought sports cars, the price of their golf membership or how much money his wife spends on shopping. Possessions reveal your position on the Chinese social ladder. The idea is that in order to own exclusive products one needs access to an exclusive network of people. Read the rest of “Big in the little things” or post a comment

By Gregory Sy and Currie Lee

With China’s opening of its market and recent succession into the WTO, it has undergone rapid development in the past two decades. Due in part to such growth and in combination with its massive 1.3 billion population (330 million in its middle-class alone as compared to America’s total population of 300 million), it represents the world’s largest yet ‘untapped’ consumer market. For many franchisors seeking to market reliability associated with brand recognition and systematic organizational structures to the oftentimes chaotic and fragmented consumer sector (particularly the food and personal service industries), China will be both the largest yet most challenging opportunity in the 21st century. 

Fortunately for both consumers and those in the franchising industry, 2007 arguably brought about the largest liberalization of this sector since the “Opening Up” reforms of 1979.  Read the rest of “Guide to franchising in China Part 1″ or post a comment