1. Do you have a model for doing business in China?
We approach each case in the context of over twenty years of doing
business in China. While there are common thought processes in
evaluating each client’s situation, there is no “one
model” to meet all client needs. Your circumstances, resources,
capabilities and requirements are unique. IL leverages a large
pool of experienced professionals and executives to understand
your specific requirements and to derive the appropriate strategies
which will maximize your short and longer term position. Many times
there is an evolution of strategies and tactics recommended for
you to achieve your objectives. Many of our team have had P&L
and operational responsibility for Wholly Owned Foreign Enterprises
(WOFE’s) as well as Joint Ventures in China. We have lived
through the wrong strategies, and we have learned the lessons that
are brought only through decades of in-country experience. We will
develop and implement the most appropriate strategies for you and
your company.
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2. What types of firms
does International Leverage, LLC help?
IL targets companies with revenue ranging from $10 million to more
then $200 million in annual revenue. Our targeted clients are large
enough for us to deliver significant value as they source and/or sell
internationally, large enough for us to be able to deliver “six-figure
savings” or more. Typically IL clients are not large enough to
afford the caliber of experienced professionals we provide…professionals
who get the job done. Our clients typically are not large enough to
afford their own offices in China, but in cases where they are, we
can help establish a China presence quickly and effectively.
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3. What are the risks of sourcing in Asia?
Our view is that there are more risks in not sourcing in Asia, yet
understanding the landscape and related risks associated with such
a decision is important. Among the most significant risks in doing
business in, for example China, or in any international market, is
not being aware of how business is conducted. Typically in Asia business
is
done
at a different pace and is based on different principles then business
conducted at home. You don’t need to always “do it their
way”, but knowing “their way” can be a tremendous
advantage. Not knowing how business is conducted from the other perspective
is a great risk. Language and cultural hurdles are eased through
the resources available from IL. The fact that your competition is
or will already be sourcing from China can present a much greater
risk than partnering with IL to secure quality sourcing from China
or the establishment of Joint Ventures of wholly owned facilities.
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4. Are there qualified
suppliers in China?
As in any market, there are very capable suppliers and others less
capable. It takes time and networks to find the suppliers which best
match your
firm’s requirements. Some suppliers have great websites, yet
when you inspect their facilities, you find the website was based on
photography sourced somewhere other then the plant you see. One of
the unique aspects of suppliers in China is that they can possess the
same German, Japanese or US-sourced computer-controlled equipment as
you find at home, but the labor cost and associated overhead is a fraction
of our domestic levels.
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5. What do we need in order to start the sourcing
process?
The same detailed requirements you need to manufacture a product at
home are needed in China. Prints, Autocad or other 3D modeling data,
samples, estimated annual volumes and target prices are common inputs
to the
sourcing
process. Additionally, test procedures, test fixture requirements and
other quality-related documentation are important to understand up-front.
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6. Is intellectual property at risk when we source
in Asia?
Protecting your intellectual property is
important, and it is possible to protect. There are strategies we deploy
to minimize your
risk, and
IL has pre-selected many supplier partners who operate with the ¬¬level
of integrity you desire and deserve.
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7. Can I visit the manufacturers?
Absolutely. IL regularly arranges factory tours for our clients.
Depending upon your requirements and company philosophy, you can
be as much as little involved in the sourcing process as you like.
Some clients never visit the supplying factories, while other clients
work hand-in-hand with IL professional in determining the best partner
suppliers. Typically, if a client is going to establish a joint venture
or wholly-owned facility in the future, they spend more time on the
ground with our team. Many of the straight-sourcing clients supply
only the requirements, and IL does the rest.
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8. What are the shipping costs and delivery times from Asia?
Not only does International Leverage source products in
Asia, we have also demonstrated the ability to sell into many of
the
Asian
Markets.
From helping
US technology firms establish sales in the Japanese
automotive markets, to helping Japanese technology firms establish
distribution in China, to helping establish marketing and sales channels
for US commercial and consumer products in China. We like sourcing
from Asia; we love selling products in Asia.
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