Go China! - Zvi Shalgo

Competitive business models in the Chinese Market Zvi Shalgo – CEO, PTL Group

March 20th 2013

More than Management ™

China Economy forecast

China employee monthly salary

Higher Labor Cost

The number of Chinese Internet users is increasing at a dramatic pace — over 2100% in the

last 12 years.

Source: Social Times

Internet Users in China

Studies are showing a dramatic increase in the amount of e-commerce that occurs in China, and expectations are that Chinese online trade will grow to be the world’s largest by 2015.

Source: Social Times

Online Sales in China

FIE’s focus has shifted from top tier clients to the fast growing and extremely competitive mid-market.

Selling “advanced technology” and “European quality” alone are not enough to sustain a marketing advantage.

The Chinese Government is supporting chosen local industries financially, technologically and commercially.

Rising operational cost reduces China’s attractiveness as a low cost manufacturing center. Over 70% (AmCham 2011 survey) of manufacturing FIE’s are “made for China” oriented.

Chinese Domestic Market Forces

www.PTL-Group.com

Chinese Domestic Market Forces

www.PTL-Group.com

Effective Operations and

Strategic Investments in support

infrastructure has become THE MAIN CHALLENGE in the race towards a

competitive advantage

What normally goes wrong during penetration to China?

New Operational Concepts:

• Outsourcing key management & operations resources

• VC, PE - Getting investment from Chinese-Foreign funds

• Working with Chinese local governments to develop new support structures fitting small technology oriented companies

• Following up Israel / China governmental support initiatives (“100 Million”, Joint R&D Funds)

www.PTL-Group.com

Industrial Incubation

Local R&D operation as your foot hold in China

localization of products and knowhow pre-sale and after-sale focus investment/cost saving local supply chain support

Signing Ceremony between Matrix Global and CZ Government

CZ Mayor Yao Xiaodong (right), Chinese Ambassador to Israel Gao Yanping (center) Industry, Trade and Minster Shalom Simhon participated in a ceremony to mark the signing of Matrix Global’ s agreement.

Chinese & Israeli Governments start to develop updated approaches to support technology oriented companies

Local operations are a key to commercial success in China Local operations are a key for local investment

www.PTL-Group.com

Zvi Shalgo

Email: [email protected]

Mepi Frankel

Email: [email protected]

Shanghai Head Office

Room 301, 798 ZhaoJiaBang Rd.

Shanghai, 200030, P. R. China

Phone: +86 21 64453190, Fax: +86 21 64453191

Contact Us:

www. PTL-Group.com China • Israel • The Netherlands • Italy

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Industrial Turnkey

Project Management

Industrial Incubation

Industrial

Projects

Operational Audits

Turnaround of

underachieving

subsidiaries in China

Business

Recovery Investment

Equity Investments

Partnering with PE/VC

What PTL Group Does?

Distribution

Logistics

Warehousing

Human Resources

Financial management

Marketing projects

Management

Solutions

Operations Management

Some of Our Leading Clients