WELCOME TO SHANGHAI. Be Part of The Future; Be Part of Shanghai

Transcription

1 WELCOME TO SHANGHAI Be Part of The Future; Be Part of Shanghai

2 Agenda 1. Introduction 2. What is China today? 3. Growth of Chinese Economy 4. Internet and E-commerce 5. Innovation House Shanghai

3 My Story B. Sc (econ) Dipl. Intl. Business/Sivilmarkedsfører (BI) Sales Manager, Nunc, Germany VP Sales, Axis Shield, Norway/Germany/USA VP Asia/Pacific Alpharma, Singapore/Malaysia/Asia-Pacific/USA SVP/EVP Tomra Systems, Europe/USA/Japan/Asia VP Titech Visionsort, Europe/Asia/USA VP Bus Dev, Photo Cure, Europe/USA Management for Hire/CEO Commercial Consul, IN, Shanghai BoD/CEO: Evolution Software, ZipGreen, Kaffepikene, KSD Software, Euro Export Invest, Scanbio, Algeta, BioWaz, Btech Group, Digimaker, Greentech, Pretech, Pinjata, Camo Software 3

4 2. What is China today?

5 WHAT COMES TO MIND WHEN YOU THINK ABOUT CHINA?

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8 Deng Xiaoping: To get rich is glorious «Functional Cat» Deng Xiaoping

9 What China is not

10 Agenda 3. Growth of Chinese Economy

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12 By the middle of this century, Asia could reach more than half of the world s total output GDP Middle East and North Africa 3% Latin America & Caribbean 10% North America 15% Asia 51% (today 27 %) Europe 18% It is possible to reach this scenario solely through the power of population Mauro Gozzo, Chief Economist Swedish Trade Council, 2011

13 China is growing with high speed from a high level compared to BRIC and CIVETS countries Real GDP growth Market map including real GDP growth, GDP and population (bubble size) 2010 India China Vietnam Brazil Egypt Indonesia Colombia South Africa Russia GDP

14 Urban China is Growing Fast Beyond Shanghai and Beijing Tier 1 Tier 2a Tier 2b Tier 2c Tier 3a Tier 3b Population: >8 million >5 million >2,9 million >1,5 million >1 million No. of cities: 4 cities 11 cities 10 cities 16 cities 136 cities 484 cities GDP/capita: > RMB > RMB > RMB > RMB Total GDP: >820 billion RMB >97 billion RMB >97 billion RMB >65 billion RMB Shanghai Chongqing Chengdu Dongguan Wuxi Fuzhou Harbin Linyi Quanzhou Beijing Guangzhou Shenzhen Tianjin Wuhan Hangzhou Nanjing Foshan Shantou Xi an Shenyang Ji nan Wenzhou Zhuhai Taizhou Ningbo Zhongshan Suzhou Qingdao Changsha Yantai Dalian Putian Tangsha Changchun Shijiazhuang Huai an Guiyang Nanchang Zaozhuang Xuzhou Xiangfan Baotou Jinhua Jiaxing Dongying Jinzhou Shaoxing Xiamen Zibo Urumchi Zhoushan Changzhou Zhengzhou Huizhou Yueyang Taiyuan Lanzhou Quzhou Kunming Jilin Nantong Daqing Shaoxing Huzhou Zhoushan Yueyang Quzhou

15 Shanghai 1987

16 Shanghai 26 years later

17 Hypermodern transportation infrastructure Rapid growth High Speed rail Investments in Infrastructure

18 Highly educated work force Skilled labor Western educated

19 What Chinese students study Medicine 7 % Agriculture 2 % China ~45% Science, Engineering Administration 17 % Philosophy 0 % Law 5 % Economics 5 % Education 9 % Literature 14 % Engineering 36 % History 0 % Today: 30m students in total (Future: 65m students in total) US ~15% Science, Engineering 16m students in total EU ~35% Science, Engineering, medicine 17m students in total Sciences 5 %

20 Patents filed in the world In 2012, for the first time, residents of China accounted for the largest number of patents filed throughout the world Residents of China filed 560,681 patent applications; this compared with those filed by residents of Japan (486,070) and residents of the United States of America (US, 460,276) Source: World Intellectual Property Organziation (WIPO) report of 2013

21 Highly advanced manufacturing, e.g. producing ~50% of all cars in Asia.

22 Rapidly growing middle class China is the biggest antipoverty program of the last century Martin Jacques (TED talks) Rapidly growing middle-class Growing number of affluent households

23 Source: The Economist, IMF Asia is almost entirely responsible for this growth. Its middle class is forecast to triple to 1.7 billion by By 2030, Asia will be the home of 3 billion middle class people. It would be 10 times more than North America and five times more than Europe

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25 Shanghai * Beijing * Tokyo * Mumbai * Shenzhen * Sao Paolo Delhi * Cairo Nanjing * Foshan * Tianjin * Dongguan * Chongqing * Guangzhou * Mexico City Chengdu * Hangzhou * London Moscow Karachi * Paris Xiamen * Hong Kong * Jakarta * Lima Taipei * Wuhan * Changzhou * Kolkata * Tehran Shantou * Osaka * Wenzhou * Johannesburg Seoul * Bangkok * Emergence of middle class households drives economic development World s cities ranked by increase of middle class households** until Increase, million households 27 of 36 world leading cities measured by increase of middle class households are in Asia ** Increase in number of households with annual income > USD at PPP Asia Other

26 China gives you the world s best consumption story China s private consumption as percentage of world s consumption Percentage (%) ,5 30,3 29,7 US China 27,3 26,4 24,4 16,5 23,1 22,9 26,4 28,8 21,2 20, ,7 5,2 5,8 8,5 11, F 2015F 2018F 2020F 2023F 2025F Source: IMF, CEIC, Credit Suisse

27 City projects and urbanization Large city-scale projects High profile projects

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29 Focus on clean-tech, bio-tech and high-tech Electrification of cars H-E power Solar power China: The Epicenter Of Clean Energy Investments - Forbes 2013

30 Agenda 4. Internet and E-commerce

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34 Didi App lansert i September emisjon $3M i Desember emisjon $15M i April emisjon $100M i Januar millioner daglige brukere i Mars byer i Mars k sjåfører & 100m registrerte brukere within ~2 years Kuaidi App lansert i August emisjon $10M i April byer i Juni millioner daglige brukere i Mars byer i Mars 2014 $766 millioner i transaksjoner 1. kvartal 2014

35 Paradoks: Flere av verdens største internettselskaper (Tencent, Alibaba, Baidu) er Kinesiske. Samtidig tenker vi på Kina som et lukket land på internett

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44 Agenda 5. Innovation House Shanghai

45 A local presence

46 Get local PEOPLE ON THE GROUND

47 Leadership Norway China

48 Hoftsede s 5 dimensions of culture

49 Leadership in Norway

50 Life

51 What does it mean to you? Mianzi / Face Associated with a sense of honor, dignity and pride, and how the sense is perceived by others Face is serious business in Chinese culture Guanxi / Network More than relationship Business relationship is followed by personal relationship They are not separated in Chinese context Take home message: The Chinese seek to solve problems within the framework of the relationship - not necessarily through legal processes

52 Communication patterns Suspicious of doing business with relatives and friends Suspicious of doing business with someone they don t know

53 Fastest growing city in the world Increasingly cosmoplitan Biggest seaport in the World $110 billion in FDI from 150 foreign countries Home to more than 400 multinational regional HQ s Wages still low, RMB p/a Favorable location for local presence (FTZ) A dynamic and vibrant City Why expand your business to Shanghai?

54 Innovation House Shanghai; Your Stepping Stone to the Chinese Market

55 Innovation Norway s other incubators Rio/Houston San Fransisco

56 What does Innovation House Shanghai offer? Easy access; door 2 door metro KIC in Yunpu District

57 KIC and Yangpgu district IT, Clean-Tech and Creative Design Shanghai s Silicon Valley

58 The facilities Office space, including facilities and office shared services 1820 NOK per person per company per month, all inclusive Services: Innovation Norway SMEs 425 NOK per hour Services: NorVisdom Fixed payment for 12 months service Modern Convenient Affordable

59 Hva vi ser etter: Naturlige konkurransefortrinn Norsk spisskompetanse og høyteknologi Stabil og langsiktig finansiering Global interesse og kundebase

60 Plug & Play; Flexible Office Spaces High Quality, Modern Office Building Ideal Working Conditions, Tech Heavy Area Meeting Rooms & Cleaning Service Reception & Administrative Support Underground Parking & Storage Innovation House Shanghai offers the following, in addition to Innovation Norway Shanghai s already excellent services

61 Thank you for your attention! Pål Bråthen Mobile