World Wind B.V. , incorporated in the Netherlands, is a start-up company established to create connections between Europe and the emerging markets in Asia and China taking the form of venture capital projects to develop new markets. Background World Wind’s business idea is premised on the basis that many small- and medium-sized commercial organizations do not have the capability or resources to exploit opportunities that may be present beyond their country or region of origin. The main reason is the time it would take to become familiar with the cultural differences, understanding business practices, the risks of miscommunication and perceived lack of control. From West to East World Wind B.V. focuses on industries and business activities that bring commercial and societal benefits to the provinces of China where they work. The area of focus is in Shenzhen within the province of Guangdong and Kunming within the province of Yunnan. World Wind works alongside their clients to identify potential markets in the East that will benefit from experience and expertise from Western organizations. They then direct their teams to expedite the process of securing a route into the market for their clients. Municipal waste processing As China’s economic growth continues, the amount of waste generated and the requirement for energy will be among the most important challenges that the Chinese government will need to manage, especially in areas of high industrialization such as the province of Guangdong. The government requires most waste to be recycled and reused, thus the recycling industry is rather mature in China. In 2004, China surpassed the United States as the world’s largest generator of waste, and by 2030, China’s annual solid waste quantities will increase by another 150%, growing from about 190m tons in 2004 to over 480m tons in 2030. Shenzhen was the first city to receive the status of Special Economic Zone (SEZ), allowing it to have special policies and government measures that ensure a conducive environment to commerce and trade. This is aided by its proximity to Hong Kong, to which it is well connected by road and rail. Construction waste processing Construction waste recycling is the process of separating and recycling of waste materials generated during construction and remodeling. 80% of construction waste consists of waste soil, and scraps of steel, wire and metal pipes, wood scraps, wood chips, particleboard, crates, bags, chips of mortar, and broken concrete blocks. Most construction waste can be recycled as follows: * steel scrap, wire and other scrap metal can be processed into a variety of metallic materials; * waste wood, bamboo and wood chips can be used in the manufacture of artificial wood boards; * scraps of brick, stone and concrete can be processed into sand for use in masonry mortar, plastering mortar, concrete blocks, bricks, tiles, concrete hollow blocks, concrete hollow partition boards, ash bricks. Reports from 2005 stated that the construction waste in Shenzhen amounted to 4.1mil m3 (6mil tons) per year; or a daily average of 11,300 m3 (17,000 tons). In the 5-year economic plan of 2006-2010, the total construction space is expected to increase by 25mil m2 yearly, contributing another 6mil tons of construction waste over and above the base level of 10mil tons being generated annually in Shenzhen. This will add to the stock of 60mil tons of waste that has accumulated over the past 2 decades, sitting in landfills around the area. Ship-building and Marine Technology The Pearl River Delta, adjacent to Shenzhen is one of China’s 3 ship-building bases in the country. China’s completed ships, newly-gained orders and orders-in-hand have already overtaken Europe since 2003. In order to meet rising demand for ship-repairs and to provide comprehensive services, the China Merchants Group has invested heavily into expanding the ship-yards of Yiulian Dockyards (Shekou) Ltd on Mazhou Island in the Pearl River Delta. The new facilities will cover an area of 700,000 sq metres, providing the capacity to house 2 new VLCC dry docks and 2 floating docks. The market for marine components and fittings eg vent check valves, bell valves, marine hatches, motors, pumps, hoses, filters, control systems and anchoring systems is growing rapidly as China continues to drive its ship-building capacity. From East to West For the past decade, manufacturing in China has focused on low-cost products of mediocre quality that were exported worldwide mainly as raw material, components or packaging for other products. As China developed, manufacturing and quality control have improved. Over the past 5 years, many international brands in consumer electronics, electrical appliances and fashion have moved their production to the Far East. The next step of development has already started with Chinese brands penetrating Western markets eg Lenovo, Haier and Mindray; however few have the resources for globalisation and fewer still have been successful at it due to lack of understanding of the western business environment and the western consumer, lack of staff with the right competence, and the high capital requirement. Small- and medium-sized Chinese manufacturers that have not the capital or competence for acquiring an existing brand or forging alliances with western businesses have pushed their products through traditional exporting channels which enabled increased volume of production but reduced the available margin for the manufacturers and did not allow them access to the end consumer. Gateway-to-Europe World Wind B.V. has developed the Gateway-to-Europe concept to replace traditional export channels as a direct route to the end customer, bypassing import/export agents and distributors. For the products, the “gateway” is an online webshop that markets to the European customer. This is backed by a marketing strategy designed to build a brand in Europe and an infrastructure for product handling. For the Chinese manufacturer, the “gateway” is a cross-border team that operates both in China and in Europe integrating strategy with operations.
|
|
|