Investment Partners

An Avela Consulting Marketing Component Resource Paper

This paper will discuss the title topic as it applies in the China Market and will explain how Avela Consulting responds with strategies custom-structured for individual client needs. These Resource Papers provide a preview of the issues addressed in the Avela Consulting Feasibility Study that will be prepared for your individual needs.

Backstory

China is opening its consumer market to outside large and medium-sized businesses, but any concern contemplating entering the Chinese market should consider whether taking on a local investment partner would provide substantial benefit to the enterprise. Any attempt to access Chinese consumers requires opening the right doors, and the right partner may be able to open them quicker and at less expense.

The optimal investment partner provides more than funding, although that is certainly important. A partner within the Chinese market can provide synergy, valuable connections, co-op advertising possibilities and open distribution channels, to name just a few advantages.

Of course, there is risk in any partnership arrangement, but this type of relationship is not unusual in China. Thorough background investigations and clear understandings of expectations often result in partnerships that enable foreign businesses to realize goals quicker and more profitably than they would obtain by “going it alone” in China.

Do you go it alone or do you need a Chinese partner in China? One that can not only bring financial support, but valuable experience as well. Partners can open distribution channels and relationships that could be invaluable. This is a question that will eventually need to be answered as part of your plan to address the Chinese market. Avela can help make this assessment, identifying the kind of partner you might need and assist in finding the right fit and negotiating a fair deal that will serve both parties well.

The Avela Consulting Response

After learning a client’s goals for the China market, Avela Consulting may propose that the client consider an investment partner as an expedient to attaining those goals. (Or perhaps the client has already reached that conclusion independently.)

Avela can assist in the decision and selection process by identifying the best type of partner for the situation searching for the right fit within the available pool of investors. We will provide discrete, in-country background investigations to make sure the client has eyes wide open when making the choice.

We also assist in contract negotiations which require a reckoning of cultural differences. For instance, Chinese parties tend approach such commitments differently than is typical in the West. Rather than create documents intended to cover every possible contingency in perpetuity, Chinese business people tend to seek a contract that establishes the initial expectations of both parties, with the understanding that it will be revisited and revised with the benefit of experience. Avela Consultants has experience in contract negotiations on both sides of the Pacific Ocean and provides the necessary cultural bridge.