Comprehensive support for business creation in China, including strategy formulation, negotiations with potential local partners, and PoC design

Background

A major manufacturer, in creating a business in China, focused on a social issue caused by the rapid spread of e-commerce in the country. With an eye toward resolving this issue, the manufacturer decided to collaborate with DI in exploring new business opportunities.

Support overview

DI divided the project largely into two phases: Strategy and business model formulation based on local market research, and partnership negotiation with local companies and PoC design. The project lasted for about 2.5 months.

Phase 1: Strategy and business model formulation based on local market research (duration: approx. one month)

DI conducted interviews (with about 30 individuals) utilizing its local network in China and visited local sites to better understand the target industry trends in the country. DI sought to align its views with the client’s through daily communication and weekly meetings with the client’s project team, while at the same time striving to gain an accurate, multifaceted understanding of the local industry structure and issues and needs various stakeholders were facing due to changes in the structure. In parallel with these efforts, DI drafted a business proposal to address the issues and needs; it formulated short-term solutions as well as a business development scenario for the longer term.

Phase 2: Partnership negotiation with local companies and PoC design (duration: approx. 1.5 months)

After completing Phase 1 of the project, DI went to China and compiled a list of over 10 partner candidates, and with three of these, DI held discussions and proceeded the talk to initial negotiation stages on behalf of the client. Based on impressions from discussions with the partner candidates, DI refined the solutions, business model, and business development scenario. Further, with one of the three partner candidates, DI formulated a plan for conducting a PoC in China. DI clarified tasks to be performed in a PoC with the partner candidate, whose language and business customs differ from the client’s, and divided roles (i.e., who is in charge of verifying what and how), and only then, introduced the partner candidate to the client, leading to a smooth start toward the launch of a new business.

After completion of the project

• The client established a joint venture with a local Chinese company and began providing solutions aimed at resolving social issues.
• Efforts are underway to resolves social issues in China and grow the new business into one that can support and lead the client’s future.