3 things to know before making a major investment into the China market

By David Sullivan | 11/6/17 10:12 PM

The China market for technology companies is huge and Chinese technology companies are getting stronger and going global at an accelerated pace.  While China shouldn’t be ignored, most Western technology executives have heard the many stories of failed or loss making China efforts or have experienced it themselves. Even in China today, it is still easy to be fooled by the lure of huge numbers and opportunities.  Attractive deals and partnerships do exist but they often come at a cost. 

We typically don’t recommend entering China unless you are committed and have the resources or need to be in the market.  However, for those that have made the decision to address China or cooperate with Chinese companies going global, there are ways to de-risk the program and significantly increases your chances of success.

Consider many of the strategies often used to engage with China. Many companies start with a China “fly-in-fly-out” strategy trying to develop China from afar by leveraging their investors or relationship network for introductions to start having conversations in the market.  Many others start by setting up a China legal entity and hiring staff and beginning the process to see how and with who they can monetize China. 

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ADG China Insights November 2017

By David Sullivan | 11/6/17 10:07 PM

November 2017 - ADG China Insights

 

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ADG Hires Jared Luo to Continue Expansion Beyond Mainland China to Provide Services in Korea

By Chris DeAngelis | 8/8/17 7:51 PM

We are excited to have Jared Luo joining the ADG team as a Business Development Manager.  Prior to ADG, Jared was with Huawei and Samsung and is experienced in cross-border business development in both B2B and B2C areas — among smartphone/device OEMs, app developers, internet companies, and service/content providers.  Jared joined ADG due to his passion for working in a multi-cultural environment and thrives on driving success.  Welcome Jared! 

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Developing Major Markets with One Resource Is a Bad Idea—and China Is No Exception.

By David Sullivan | 10/20/16 6:00 AM


What do the most successful Western companies know about doing business in China? They know that when attempting to forge meaningful ties, a sales force of one just won’t cut it.

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Why Your China Deal Isn't Closing

By David Sullivan | 9/6/16 1:55 PM

As China overtook the United States in 2011 to become the world's No. 1 producer of manufactured goods and the second largest global economy, it has become a must-do market for many, if not most, Western technology companies.

Take the smartphone industry as an example. In Q1 of 2016, IC Insights reported that 8 of the top 12 smartphone manufacturers (or OEMs) are based in China. Put into real terms, in 2016, these eight Chinese manufacturers are expected to globally sell more than double the volume of Apple or over 520 million smartphones.

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