Please click the highlighted link to see pictures taken during each visit.
GAP: Store tour of integrated Gap and Gap Kids location, plus brief presentation of Gap strategy, branding.
Mark Fairwhale: Founded in 2000 – China-based. Now 850 stores across China. Presentation focused on branding strategies and creation of a clear brand image for a “new” and “Chinese” brand of work and leisure apparel. 30% of sales are wholesale, helping Fairwhlae jeans acquire a 50% market share. Food at rapid product design/deployment (60 days from design to product in stores). Have 60 designers in-house, but use outside manufacturers. Looking to expand outside of China.
American Chamber of Commerce: Presentations by Scott Jenkins, Managing Director of Asia Sourcing for Lowe’s, (also Chair of AmCham board), andPaul Brown, President, Asia for International Paper. Presentations focused on top ten challenges for doing business in China, including HR and staffing constraints, unclear regulations, bureaucracy, tax administration, domestic protectionism, difficulty enforcing contracts, and corruption. Concerns over China economy being overbuilt and overheated, but anticipate “soft landing”.
Pam Gliss, Attorney with Armstrong Teasdale, LLC: Attorney who works with small-to-medium size companies entering China market. Presentation focused on how to decide whether to even enter the market, and various ways this might be accomplished (e.g., joint venture, franchise, local distributor), depending on company objectives. Discussed labor issues and forecasts, including 13-20% annual increase in minimum wage for next five years. Also discussed challenges of repatriation of profits, how to comply with Foreign Corrupt Practices Act, cultural challenges (e.g. delaying paying bills – or even not paying at all can be seen as a way to demonstrate that you are a shrewd businessperson). Also discussed location strategy for smaller businesses and challenges of increasing price pressure.
Old Shanghai Town / Chenghuangmiao shopping area
Group Dinner and Cultural Experience