China’s Consulting Industry in Your Interest

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  Consulting services currently available in China fall into the following four categories:
  Information consulting services: These cover market investigations and collection and analysis of market information to facilitate decision-making by investors. Fees are charged on a project by project basis, not on the basis of the human labor and the number of workdays used to implement a specific project.
  Investment consulting services: These cover feasibility study and demonstration of investment projects, and services relating to investment, financing and acquisition. Some investment consulting companies provide services of information consulting as well.
  Managerial consulting services: These cover consulting on investment strategies, consulting on human resources management, consulting on marketing operations, and financial and accounting consulting. Some managerial consulting companies are capable of providing customized or personalized services, and engage in information and/or investment consulting as well.
  Engineering and technological consulting services: Such services are highly specialized, provided to a specific industry or to a specific part of an investment project. But on the whole, they cover a wide range of fields.
  Current conditions of China‘s consulting industry and its composition
  China‘s consulting industry has become fairly complete thanks to development over the last two decades. It consists of:
  International consulting corporations, such as McKinsey, Roland Berger, Boston, Kearney, BCG, PWC and FLS. These enjoy a high international prestige, have full access to powerful data pools, are backed by a large collection of case studies and operate in strict accordance with international practices. Their service charges, however, are relatively high.
  Chinese consulting companies with international background and Sino-foreign joint venture consulting companies: These include IIH Radar Management Co. and Shanghai LuHua. These have a contingent of experts who have worked in foreign consulting companies or have studied in business schools in foreign countries. Chinese consulting companies of this category are limited in number, and their service charges are low relative to international consulting companies. Their advantage stems from intimacy to both international practices and the Chinese culture.
  "Indigenous consulting companies" started by professor and/or students of Chinese universities: These are flexible in business operations and their staff members, taken as whole, are familiar with China‘s specific conditions. But they vary in professional competence and most of them are small in size.
  Specialized consulting services
  Consulting companies that are well-versed in international practices have begun specialized consulting services to foreign-funded enterprises and investors. These include provision of information relating to China‘s investment policies and environment, basic market indices, investigation of target markets, information about the objects of acquisition, information relating to market access and relevant procedures, market access strategies, investment planning and strategies, etc. Consulting companies also help clients handle various legal procedures, contact the government and undertake headhunting. IIR Radar and LuHua of Shanghai are among companies of this caliber.
  Advise to investors:
  The following must be taken into account when you start choosing a consulting company to meet your needs:
  1. Whether a potential candidate is experienced in the trade, as well as its professional background, credibility, professionalism and size;
  2. Whether the candidate has a data pool to count on, how it is rated in terms of problem analysis and solving, and the accuracy of the information it has provided;
  3. The composition of the potential candidate‘s staff, their professional quality - the professional competence of their project managers, in particular;
  4. Whether plans provided by the candidate are rational and realistic, and whether the candidate is capable of implementing them;
  5. Performance of the candidate in its business operations in the past.
  
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