2013-03-20 MIT

1. Competitive business models in the Chinese MarketCompetitive business models in the Chinese Market
Zvi Shalgo – CEO, PTL Group
March 20th 2013
More than Management ™

2. China Economy forecast

3. China employee monthly salary
Higher Labor Cost

6. The number of Chinese Internet users is increasing at a dramatic pace — over 2100% in the
last 12 years.
Source: Social Times
Internet Users in ChinaInternet Users in China

7. Studies are showing a dramatic increase in the amount of e-commerce that occurs in China,
and expectations are that Chinese online trade will grow to be the world’s largest by 2015.
Source: Social Times
Online Sales in ChinaOnline Sales in China

8. FIE’s focus has shifted from top tier clients to the fast
growing and extremely competitive mid-market.
Selling “advanced technology” and “European quality”
alone are not enough to sustain a marketing advantage.
Chinese Domestic Market Forces
The Chinese Government is supporting chosen local
industries financially, technologically and commercially.
Rising operational cost reduces China’s attractiveness as a
low cost manufacturing center. Over 70% (AmCham 2011
survey) of manufacturing FIE’s are “made for China” oriented.
www.PTL-Group.com

9. Chinese Domestic Market Forces
Effective Operations and
Strategic Investments in support
THE MAIN
www.PTL-Group.com
infrastructure has become THE MAIN
CHALLENGE in the race towards a
competitive advantage

10. What normally goes wrong during penetration to China?What normally goes wrong during penetration to China?

11. New Operational Concepts:New Operational Concepts:
• Outsourcing key management & operations resources
• VC, PE - Getting investment from Chinese-Foreign funds
• Working with Chinese local governments to develop new
support structures fitting small technology orientedsupport structures fitting small technology oriented
companies
• Following up Israel / China governmental support
initiatives (“100 Million”, Joint R&D Funds)
www.PTL-Group.com

12. Industrial IncubationIndustrial Incubation

13. LocalLocal R&D operation as your foot hold in ChinaR&D operation as your foot hold in China
localization of products and knowhow
pre-sale and after-sale focus
investment/cost saving
local supply chain support
Signing Ceremony between Matrix Global and CZ Government

14. Chinese & Israeli Governments start to develop updatedChinese & Israeli Governments start to develop updated
approaches to supportapproaches to support technology oriented companiestechnology oriented companies
Local operations are a key to
commercial success in China
Local operations are a key for
local investment
CZ Mayor Yao Xiaodong (right),
Chinese Ambassador to Israel Gao Yanping (center)
Industry, Trade and Minster Shalom Simhon
participated in a ceremony to mark the signing of
Matrix Global’ s agreement.

15. Zvi Shalgo
Email: exec@ptl-group.com
Mepi Frankel
Email: mepi@ptl-group.com
Shanghai Head Office
Room 301, 798 ZhaoJiaBang Rd.
Shanghai, 200030, P. R. China
Phone: +86 21 64453190, Fax: +86 21 64453191
Contact UsContact Us::
www.PTL-Group.com
www. PTLwww. PTL--Group.comGroup.com
China • Israel • The Netherlands • Italy

16. Industrial Turnkey
Project Management
Industrial Incubation
IndustrialIndustrial
ProjectsProjects
Operational Audits
Turnaround of
underachieving
subsidiaries in China
BusinessBusiness
RecoveryRecovery
InvestmentInvestment
Equity Investments
Partnering with PE/VC
WhatWhat PTLPTL GroupGroup Does?Does?
Distribution
Logistics
Warehousing
Human Resources
Financial management
ManagementManagement
SolutionsSolutions
Operations Management
``
Financial management
Marketing projects

17. Some of Our Leading ClientsSome of Our Leading Clients