Our Challenge: Recommend if and how our client could expand its China business by conducting a market entry analysis in a short timeframe

• Client: "EuroSteel", a world leader in the steel industry, with committments in China of over US$1 billion when it hired China Concept.

• Our Mission: Conduct a fast market analysis of a steel product in the construction sector, identify if a market opportunity existed, and, if so, create a market entry plan.

Research: Identify market opportunities

• Analyzed Policy Environment
  • Interviewed industry policy makers and regulators
  • Identified import duty issues
  • Analyzed differing construction policies and requirements in major provincial markets

• Examined Current Market Situation
  • Domestic production quality and capacity
  • Import and export situation
  • Market size
  • Major competitors
    • Product type
    • Substitute materials
    • Production quality
    • Geographical markets
    • Development plans
  • Major product users

• Assessed Market Trends
  • Interviews
    • Industry policy makers and regulators at the central and provincial levels
    • Procurement officers, developers and competitors
    • Major product users

Strategic Recommendations: China Concept concluded that a market opportunity existed and entry should be conducted through local manufacturing

• Overall Assessment: Market has considerable potential for correctly positioned products

• Local Manufacturing: The cost sensitivity of the market, combined with the importance of building direct contats with long-term buyers, suggested that the most effective long-term strategy is local manufacturing.

• Location would be a key issue in the market entry decision

• Marketing: As part of any long-term marketing effort, it would be important to promote the product as more sophisticated and efficient than versions of the product that were currently available in China

Results: Go-ahead with market engry

• Based on China Concept's recommendations, EuroSteel was able to identify a long-term opportunity and proceeded with full market entry planning for the product

• EuroSteel clinched a JV contract with a Chinese company to build a US$1.4 billion steel products plant in eastern China, using China Concept's analysis as part of its overall strategic planning