According to Alberto Forchielli, managing director at Mandarin Capital Partners, the best way to enter the Chinese market is to take on Chinese capital. Going to China with Chinese money ensures total alignment of interests when expanding into that market. Hence finding the right investment partner is key for success. And you got to love being in China. Alberto makes a point of highlighting this by highlighting that if you start craving pizza and spaghetti shortly after arriving there, then you shouldn’t be there. We argue this is the case for all markets, but maybe more so in the Chinese case.
You got to be an early entrant, and execution needs to be extremely quick, and close to perfect. Where sometimes a market segment can grow at 20% a year, supply can outgrow demand at 40% given how much investment capital is available. The market is currently craving for health and pharmaceutical products, oil and gas equipment, and specialty chemicals. But look again in six months and the demand will have changed beyond recognition.
Watch the video on Bloomberg TV: http://bloom.bg/114KOlr