The Wrong Way and the Right Way
Finding the right partner in China is a critical matter- whether this is a joint venture partner, a channel or technology partner. Getting set up with the right (or wrong) partner(s) is a key structural issue that could make or break one on this market. Too often, however, partnerships are made haphazardly, and/or without sufficient investigation of the candidate. In the first instance, "matchmakers" often recommend who they know, have heard of, or are connected with in some way. This way is lazy, or even disingenuous.

GCiS is not a "matchmaker." We use systematic research to fills both of these needs. We have a Partner Search Program to find the most appropriate partner, and to perform due diligence on final candidates. In a market as diverse and complex as China, this is the right way to do it.

Three Phase Approach
Screening and selection of partners is a practical exercise, with an explicit goal. Based on our previous experience doing this in China, we have designed a program consisting of three basic phases. Each phase is designed to optimize time, focus and coverage, and to provide opportunity for intelligent, cooperative segmentation and analysis. The objective is establish one or a set of partners that will cover best match the client’s requirements. This is what might be referred to as a “matrix matching process”. One axis of this matrix are product, business area (industry) and geography (such as in distributor searches).

The process will vary based on the type of search and the client. In some cases, for example, the total universe is 100 companies, and in some closer to 1000. In Phase 3, there can be as many as 50 interviews for a single target, and rarely fewer than 15. GCiS has a Database of over 70,000 companies in China, so we typically do not have to go out of house for Phase 1 Research. The phases are illustrated in this graphic:

To summarize, the phases are:

Phase 1: Initial Screening (based on Client's criteria)- Filtering of companies for Ph. 2
Phase 2: In-depth investigation, often in-person- final selection for Phase 3.
Phase 3: Due diligence of final candidates- intensive research of each company (with
the company itself, competitors, vendors, creditors, etc.)

Examples of categories covered in Phase 2 are show here. This is an example only, as different projects and needs will have different requirements.

-Company history
-Company management
-Primary businesses
-Secondary businesses
-Current market view
-Market development view
-View of development of services
-Verification/correction of round 1 information
-Explanation & verification of IP
-Financials (as possible)
-Details of key projects
-Details of key partnerships
-Summary of general market reputation
-Interest in joint venturing
-Summary of how partnership should work
-Other (varies by project, company)

At the end, all results and analysis are collected in a study, and recommendations made. There is normally significant client interaction throughout the process, and consultation afterward. In addition, some companies choose to work with us in one part of this program (eg, Phases 1-2), and do the rest themselves.

Partner Search and Selection in China should be Systematic: Covering as Large a Universe as Possible, with the right mix of Inclusion & Exclusion, and thorough Due Diligence of Final Candidates. The China Market is challenging enough, and it makes no sense to get set up with the wrong partners.

To receive further information on the GCiS China Partner Search, please e-mail us and request the China Partner Search PDF File.

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