Published on October 10, 2007
ITA - 53rd Annual MeetingOctober 25, 2004Anderson Power Products in China: ITA - 53rd Annual Meeting October 25, 2004 Anderson Power Products in China APP in China : APP in China A little history Why set up in China? Types of China Companies Choosing a location Overcoming challenges Counterfeit Connectors: Counterfeit Connectors Follow Your Customer : Follow Your Customer Primary driver is a follow-your customer strategy Local support, local trading Counter competitive threat OEM design centers shift Overall economic growth APP China Requirements: APP China Requirements Local presence for OEMs and subcontractors Sales/Distribution/Customer Service Manufacturing & Sourcing Product Development Logistics Manufacture and sell locally Manufacture and export Import and sell locally Import and export to A/P region Establish a direct sales force 3 Types of Chinese Companies: 3 Types of Chinese Companies Representative Office Liaison, marketing, promotion only WFOTC -Wholly Foreign Owned Trading Company Selling and “Processing” only Can sell imported goods No manufacturing WFOE – Wholly Foreign Owned Enterprise Manufacture and sell Can sell locally and export Cannot sell imported goods Types of Investment Zones: Types of Investment Zones Special Economic Zone (SEZ) Bonded Warehouse or Free Trade Zone (FTZ) Export Processing Zone (EPZ) Industrial Park of Urban Towns. Slide9: Yellow River Delta Yangtze River Delta Pearl River Delta Location Selection Criteria: Location Selection Criteria Customer base concentration Supplier base concentration Implementation cost & future developments Recurring costs structure Material flow logistics Cash flow considerations Travel considerations for visitors Three APP Facilities: Three APP Facilities Regional Headquarters – Hong Kong New Territories Location Sha Tin – North of Kowloon Manufacturing Plant & Dormitories Shenzhen Special Economic Zone Songgang, BaoAn District, Industrial Park Excellent location for convenience Distribution Center Taichung, Taiwan Challenges: Challenges Creates fear among existing employees Bureaucracy Banking Logistics Cash Flow Hiring effective leaders Global operations integration Company Car Incentives!: Company Car Incentives!