Transcript:
SAVIO: N stand for you to navigate. Navigate to local China market strong Chinese local partner.
STEVE: Okay
SAVIO: Okay
STEVE: Actually that's it. That's a good point.
So, you know a lot of times people come to me and one of the biggest questions they asked me is "should we do partnership? Should we do a joint venture? Should we do a partnership because depending on their industry they get a lot of Chinese partner approaching them especially in the educational industry, very popular and they want, the Chinese wants a foreign brand to leverage in a way to happen the partnership so there's always that questions like should we establish yourself? and run the marketing ourselves. Why should we go with the joint partner? And if we are going with a joint partner? A lot of time is a concern of just trust there's actually quite a bit of distrust between they don't know how to deal with Chinese businesses as a foreign brand.
SAVIO: Yes, you know what a lot of people are against the joint venture and each other. Here right so it could be that your partner is a licence partner, distribution, marketing partner or all of the above. Right.
STEVE: Right
SAVIO: But the key is, It's the nature of the Chinese partner is changing so fast. If you don't live there and if you don't immerse on that market. I don't care how big and how strong is the brand that we don't rely on some strong local support and help of a strong local partner chances are and many times you need more than one partner
STEVE: Yeah, yeah true. And this is what I can while we sort of started simplify and at least make that change into another remodel is what we realized is as much as we love to help every single branding every single industry is just not enough. We don't have to ask refusing every single possible way, but there are so many good people in China. That don't know how that they're not being found that you know, we can help to connect these brand was to get them together so that they can actually do something and I agree with you and I truly believe it's for certain things. You do need to have a local experience there because they live there.
SAVIO: You know, any foreign brand want to get to China we really recommend them that you know what you must have an open mind to work with one or more local partners.
STEVE: That is true even Starbucks had a partner
SAVIO: Starbucks. They have three local partners, one in the south, one in the middle and one local partner in the north. Right,
STEVE: Right.
SAVIO: So why so big there's no one company that have all the logistics and distribution and supply chain but your help. So they actually have three Chinese local partners and put them all back. The first 15 years it really reliable. Many is not most have a successful local partner and I always get a sample of Call General Motors because they have a really strong local partner for SAIC. China all over industry group. Yeah, but a GM make a lot of money and a lot of market share because of the local partners help.
STEVE: Right, Actually, you know, like if I bring it back to the point of Starbucks. they still have a partner and that you know
SAVIO: So, yeah, you're right. You're right, and then they need their three supply chain Logistics partner , you know, and then the last few years. They have Alibaba, Right.
STEVE: Yeah
SAVIO: So what I am saying is. at the different stage. May have a different partner but it's also a common theme that a good partner is instrumental for a continued success.
