Industrial Design

Business Opportunities in Asia

17.5.2013

Kati Uusi-Rauva Senior Consultant Creative Industries

Service Industry Know How at Your Service

• Services team offers expertise on a wide basis

• Focus idustries:

– Travel

– Creative Industries

– Education

– Knowledge-intensive industries

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Saku Koskinen Heli Mende Irma Patala Kati Uusi-Rauva Michael Warner

Finpro’s References in Creative Industries

5/21/2013 10 © Finpro

Background for the Market Opportunity

Regardless of fierce competition there is currently a window of opportunity for Finnish design services providers in China, Taiwan, Korea and Japan.

• OEM/ODM manufacturers and their subcontractors in China, Taiwan and Korea are striving to produce branded products for global markets in the B2B and B2C sectors.

• Finnish design professionals have competences that are still scarce in Asian markets: conceptual and service design, usability and functionality, as well as areas where a holistic design approach is required.

• Scandinavian design is highly valued in Asia

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Examples of Scandinavian Design companies at

the Market

CBD Group Industrial Design

Scandinavian Design

Consultant Co. Ltd

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Matchmaking Know How and Customer Need

Finpro is ready to help Finnish design companies to do business in Asia.

Verified needs:

• product design and mechanical engineering

• process consulting

• design strategy and process audits

• branding and graphic design

• user experience or user interface design

• service design

• high-tech prototype production

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Outcome of the Market Opportunity Session

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Offering and

action plan to be

defined&dicussed

further

in order to help

Finnish industrial

designers to enter

the Chinese market

Let us Help Your Business to Grow

Finpro experts understand how a Finnish company can do successful business in Asia.

We will:

• analyze your business process

• identify a profitable market entry

• define criteria and tools for achieving optimal sales channels

• find local partners to represent your company to your networks and contacts in markets

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Cultural Gateway Finland offers turnkey

services for international live

entertainment productions to ensure

successful entry from Europe to China

and from China to Europe. With the help

of Finpro, Cultural Gateway Finland

signed the historical first theatre

management joint venture between China

and foreign company and manages now

Shanghai Daning theatre together with

the Chinese Partner.

Finpro has been a significant part

of the cooperation during which

we have managed to sign the

historical first theatre

management joint venture

between China and foreign

company.

The greatest benefit for us has

been the top expertise of the local

Finpro consultant who has given

us concrete help in the

negotiations by clarifying the

cultural aspects and the

successful way to establish

contract.

Johan Storgård, CEO, Cultural

Gateway Finland

Founded in 2012, Cultural Gateway Finland (CGF) is a joint company managed

by four Finnish companies: ACE-Production, PES Architects, Pluto Finland and

Bif Advisors. Cultural Gateway Finland owns service brand Center Stage China

though which it offers turnkey services for international live entertainment

productions to ensure successful entry from Europe to China and from China to

Europe. The business areas include venue and network management, local and

state governmental permits, production logistics, technical support, copyright

management, production management, public relations, marketing and

production sponsorship, conference and corporate event management.

Rapidly growing mid-class’ demand for international standard performing arts

and entertainment is rocketing in China. Official China is opening borders for

international productions as culture businesses are in focus of the new five-year

plan. Hundreds of state-of-the art venues built during the construction boom

need high-quality content to drive the capacity utilization rate higher. However,

there are lots of rocks on the road which need to be removed such as the lack of

international production quality skills in China, language problems in all levels

from content adaptation to contacts to authorities, difficulties in navigating

through the hierarchical bureaucracy, permit procedures and heavy

bureaucracy, which causes unpredictability and makes long-term planning

challenging. Access to venues negotiated individually is time consuming,

Marketing and sales efforts by local operators and venues is often insufficient.

The cooperation between Finpro and ACE-Production started in Luovimo 1 program and continued later in Luovimo 2 with Cultural Gateway Finland. Together with Finpro PES-Architects (theatre design) and ACE-Production (theatre management) composed a joint offering with common marketing material. Finpro helped Cultural Gateway Finland in partner search in China and supported company in the negotiations with potential partners and in joint venture business license process. With the help of Finpro, Cultural Gateway Finland launched its services in London in November 2012, created a large customer database consisting theatre producers in Europe and carried out a roadshow in German speaking Europe during which company met potential customers.

Cultural Gateway Finland signed a historical first theatre management joint venture between China and foreign company and manages now Shanghai Daning theatre together with the Chinese partner. The theatre has own stage with 1 115 seats and western standard venue management and production support. Joint venture partner CPAA Entertainment Shanghai Ltd. is part of the China Arts and Entertainment Group (CAEG). As a result Cultural Gateway Finland has access to CAEG network with 34 theatres in China. The launch event for Center Stage China was held in London and Cultural Gateway Finland got also high quality media coverage in the Stage Magazine and in the Independent. Now Cultural Gateway Finland has a customer database with more than 200 contacts who are interested in the offered opportunity in China. Negotiations with more than 20 producers in Europe to bring productions to China are ongoing.

Jalo Helsinki is a born global

company, which specializes in

producing, developing and

designing fire safety devices.

Finpro carried out test drives for

Jalo Helsinki in France and

Germany.

We were very satisfied especially

on the test drive assignment

carried out in France. It opened

our eyes about the size and the

potentiality of the market. We

found a French distributor from the

test drive assignment and have

now recruited a French speaking

employee.

From the test drive assignment in

Germany we found out that the

markets required an additional

certification, which we are at the

moment acquiring. This was the

most important finding related to

German test drive.

Miika Perä, Co-Founder, Jalo Helsinki

Jalo Helsinki is a born global company established in 2009 and

located in Espoo. Jalo specializes in producing, developing and

designing of fire safety devices. The company has developed

the world's most stylish and functional smoke alarms Kupu and

Lento, designed by Harri Koskinen and Paola Suhonen.

Jalo Helsinki decided to start their internationalization in 2010

with the support of Finpro. Company’s target was to research

markets and to find suitable distributors from the German and

French markets.

Finpro carried out test drives for Jalo in Germany and in

France. During the test drives the right customer segments and

distribution channels were identified and the company’s product

was tested with few different distributors. As part of the test

drives, Finpro also researched the required fire safety

certifications in both countries. It was very important for Jalo to

find out that in the German markets fire safety devices should

have an additional certification.

From the test drives carried out by Finpro, Jalo has gained

information about the markets, their development trends and

found valuable business leads. The market information has

made it easier for Jalo to allocate its resources to the most

potential areas within the markets. At the moment Jalo has

distributors in both France and Germany, the former one found

during test drive assignment. Jalo has also recruited a French

speaking employee.

Finpro carried out partner searches

and sales channel development for

VM-Carpet. Partners are now found in

Denmark, Sweden and South-Korea.

In Japan the existent contacts have

been deepened and the company has

got more information about how to

operate in the market.

We have got lots of more

information and understanding of

market operations and market

structures within our industry. We

have also got new contacts and

cooperation partners. As a result,

we really have accurate and

concrete information, not just

feeling that we might know

something.

When we were visiting South-

Korea and Japan we had a Finpro

expert with us, which made our

visits easier. She gave comments

after client meetings and made it

easier for us to understand the

culture.

Maria Hanhisalo, Managing Director,

VM-Carpet

VM-Carpet is an innovative carpet manufacturer, which offers

high quality carpets for different furnishings. The company was

founded in Lappajärvi in 1973. VM-Carpet´s carpets and rugs

are sold in specialized carpet stores, department stores and

furniture and decoration shops. Today VM-Carpet’s products

are exported and distributed in more than 20 countries.

The boom for shaggy carpets had a downturn at the end of

2000s. To ensure the continuous growth after downturn on

domestic markets, VM-Carpet wanted to find new markets

abroad and develop their international business model. The

company decided to contact Finpro.

First Finpro studied market potential and sales channels for VM-Carpet in Sweden, Norway, Denmark and Japan. Next step was to search partners in Sweden, Norway and Denmark. In Japan the challenge was to strengthen existent sales channels. VM-Carpet participated in Foresight project. There the target was to discover new product and service ideas and to find new operation models. VM-Carpet took also part in Leaping Tiger Export Program (Asia). During the program Finpro carried out business opportunity check in South Korea and organized meetings in Japan, China and South-Korea .

VM-Carpet has found partners in Denmark, Sweden and South-

Korea. In Japan the existent partnership has been deepened

and VM-Carpet has got knowledge about how to operate in the

market. From Finpro Foresight project VM-Carpet got new

practical ideas, which are now used in company’s research and

development.

Rahoitusvaihtoehtoja

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26 © Finpro

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Yrityksen

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Tekes De minimis avustus

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(ELY/Finpro) arvo n.17.5 k€,

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