Korkia’s Asia Gateway opens China’s growth market for Nordic companies seeking to establish permanent presence in Asia, and through their local operations, generate profitable and sustainable business. Asia Gateway builds on top of China’s and Finland’s growing economic ties and leverages the extensive local knowledge and contacts of Korkia’s new partners, a Chinese investment fund Jiuyou and a consulting company Asia Perspective.
China is the fastest growing market for many European companies. For example, for Kone China, which is by far the biggest elevator and escalator market, represented over 25% of the company’s total sales in 2019. Finnair, on the other hand, has benefitted from the favourable geographical location that Finland has towards China which can be seen in the figures – over 45% of the ticket sales stem from the transport between Europe and Asia. Many companies have understood the great potential China’s growing up to 350-400 million sized middle class can bring. In addition, China has huge amounts of capital seeking investment opportunities all around the world. “There is still tremendous amount of untapped potential in the Chinese market for many Finnish companies,” says Aino Jääskeläinen, Korkia Consulting Oy’s Senior Consultant.
In China the economic growth and increase of the consumer-centric middle class have also put increasing pressure on finding solutions to the environmental issues. Although China still is at the same time both the world’s biggest producer and consumer of coal, it is also the biggest producer and consumer of renewable energy. One good example of China’s capabilities to reduce emissions is its rapid electrification of transportation. Already now over half of the world’s electric vehicles and up to 98% of the electric buses are in China. While China of course has a a lot of capabilities in developing clean technology themselves, they also need help. This help is something many Finnish companies can provide. In Finland there are many innovative solutions and technologies focused on reducing emissions that are in high demand in China.
The local knowledge and contacts brought into the Asia Gateway by its partners create a unique competitive advantage and lowers the barriers to enter the Chinese market
There are already over 400 Finnish companies operating in China and they employ over 60.000 people. However, for many companies, especially SMEs, the distance, lack of knowledge, local competition and language barrier still create a far too high barrier to enter the market. This prevents them to tap into the many growth opportunities the Chinese market could offer them.
Succeeding in China’s growth markets can be much easier than generally expected, but it requires strong local knowledge and especially local contacts and network, so called guanxi. Guanxi, which means personal relationship and social networks, refers to the mutual trust two parties have with each other. In China this personal trust is not limited only to family members or friends but it is applied also to business and politics. Without a good guanxi it is much more complicated to open the doors that lead to decision-making that are essential for success.
Korkia’s Asia Gateway service helps companies to build new sustainable business in China by leveraging its partners’, a Chinese investment fund and business accelerator Jiuyou and a consulting company Asia Perspective, deep knowledge and contacts in the market. “Asia Gateway lowers the entry barrier by providing a unique partner network that opens up the Asian growth market in a new way,” says Martti Malmivirta, Korkia Consulting Oy’s Executive Chairman.
The Memorandum of Understanding signed between Korkia and Jiuyou in Shanghai in January creates significant added value for Asia Gateway. By cooperating with the local government, Chinese financial institutions and high-profile contacts, Jiuyou opens important doors that are other consulting companies or individual customers cannot access.
“Jiuyou provides access to an investment fund, promotes technological innovations in many provinces and cities and acts as an active participant in China’s industrial upgrading. We strive to provide continuous investments and services to the high-tech industry. We are very excited and look forward to work with Nordic companies that are interested in the Chinese market,” comments Dave Wu, the Chief Executive of Jiuyou International, which is responsible for Jiuyou’s international business activities.
Korkia’s other partner is Asia Perspective, a Nordic management consulting company located in Asia. The signed partner contract between Korkia and Asia Perspective will further deepen the required local market knowledge as well as provide the partnership with extensive operative resources. Asia Perspective has established itself as a reliable partner and service provider in the East Asian and Southeast Asian markets, especially in China. It has already now numerous Finnish and other Nordic companies as its customers in China.
“We have over a decade of experience in doing business in Asia and have supported numerous companies from many industries to achieve their goals and visions. Our partnership with Korkia and Jiuyou further strengthens our customers’ ability to succeed in Asia. We are very excited about these new partnerships and the opportunities they can bring to our customers,” comments Daniel Karlsson, Managing Director of Asia Perspective.
Asia Gateway offers companies hands on support that help them to succeed in their market entry to China
Asia Gateway opens new growth markets for Nordic companies seeking to generate profitable and sustainable business through their local operations in China. First, Korkia together with Asia Perspective will conduct a rapid market analysis and a growth strategy study for a company interested in the Chinese markets. Based on the results, the company can make a decision to enter the Chinese market. In case the client company sees that the potential is big enough, Asia Gateway supports them also in the implementation of its growth strategy. The support in the implementation phase covers a variety of services ranging from legal services, IPR protection, office space, back-office support to execution of mergers and acquisitions and financing.
“We support our customers to build sustainable business and growth in China in the long-term in a so-called turn-key type of way – we want our clients to succeed and are prepared to put also our own skin in the game by sharing risks,” summarizes Martti Malmivirta from Korkia.
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