SUCCESSFUL BUSINESS SET-UP FOR EUROPE IN NRW
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1 SUCCESSFUL BUSINESS SET-UP FOR EUROPE IN NRW SOME STRATEGIC ADVISE FOR TAIWANESE COMPANIES DR. RALPH FOEHR ASIA TECHNOLOGY CONSULTING TAIWAN OFFICE
2 ASIA TECHNOLOGY CONSULTING Supporting European companies to find the right technology suppliers Supporting Taiwanese companies to develop the right products for European market Bringing together different technologies to form new products Working since 11 years in Greater China Area Main areas: IT and network related products Based in Taipei, Taiwan
3 CHARACTERISTICS OF THE EUROPE MARKETS Language Europa has 50+ languages German is the most spoken language (about 20%) Culture Different business approaches Different company structures Distance Different time zones Different banking and accounting systems Certificates Especially medical technology market is strongly regulated Importer takes all the risks Capital High investment if management shall be Taiwanese
4 HOW TO ENGAGE IN EUROPE Cooperate with Agent / Wholesaler Strength: no fixed cost Opportunity: market tests for Taiwan products Run a representative office Strength: low cost, already local access Opportunity: build up own sales channels Found a trading company Strength: import under own control Opportunity: control distrition chain / warehousing Weakness: no commitment Threat: only targeted to easy selling Weakness: no funding, no import Threat: limited autonomous actions Weakness: administrative overhead and cost of a company Threat: investment risk Start a technology company Strength: use local knowledge and liase locally Weakness: high investment Opportunity: get access to local R&D, funding, M&A Threat: cultural differences
5 SALES & MARKETING Fairs Go regularly to many fairs Have your own Booth Good preparation: website, printed materials, demo Invite the prospective customers Prepare articles in related journals Prepare press releases Congresses Especially in the medical field a major communication path Liase with research community Data base marketing Collect target customer list Use professional social networks Use associations Website German and English language Interaktive contents Collect website visitors Regular update and new content Reference site Win first customer to act as reference Warehouse Already imported goods Fast reaction on customer requests Compete with local products Services Be ready to execute services in Europe Train local staff
6 PRODUCT RESPONSIBLITY Production company only gets a small margin Only controlling the complete sales chain to the end customer can guarantee sufficient profits Taking over the product responsibility means: - Address the customers yourself - Have your own marketing plan - Know your competitors and be able to compare - Have your own R&D plan
7 MADE IN GERMANY Label Made in Germany is internationally highly recognized It stands for quality, efficiency and precision And is used for good, reliable and innovative products Legal conditions: the last substantial and economically important manufacturing steps have to be done in Germany (German Customs Codex, Madrid Treaty) The label is attached under the responsibility of the manufacturer, there is no institution to check But there are serious consequences, if the legal conditions are not met Most of the components can still come from Taiwan But final assembly, testing, packing in Germany Advantages even for imports back into Taiwan or China
8 R&D IN GERMANY Use the local knowledge Blend with Taiwanese knowledge Use contact to German universities and research institutions Cooperate with German research institutions Apply for German / European R&D funding
9 PERSONNEL Hire mainly local employees Send internationally minded Taiwanese to Germany to work Let Germans work and being trained in Taiwan for a while Mix teams for important company challanges
10 CAPITAL Germany, especially North Rhine Westphalia, have a lot of companies that are interested in international expansion One way can be Merger with or Acquisition of such company. M&A: Search for similar companies Offer market access to Asia, get market access to Europe Choose products that complement with your own products at the same customers
11 WHY NORTH RHINE WESTPHALIA? Geographically and traffic-wise: The Heart of Europe Biggest German state with most companies and people Many universities with technical and medical faculties Many related companies to cooperate Well trained personnel
12 ASIA TECHNOLOGY CONSULTING Thank you for your attention! Dr. Ralph Foehr Asia Technology Consulting Xing Yi Road Taipei 11284, Taiwan
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