We are very bullish about China and are driven by two primary objectives: To replicate what we do in the UK for business owners in China and to provide BCMS Corporate clients in the UK and elsewhere with a distinct advantage if the most suitable buyer happens to be a Chinese company.
BCMS Corporate has now signed cooperation agreements with, amongst others, the China Guanghua Foundation (GHF) and the Dragon Design Fund of China Guanghua Foundation (DDF) which work with environmental and design-based industries in China.
What has become very apparent on our trips to China is that there has been a marked shift in focus from an agricultural, manufacturing and export economy towards a more innovative, hi-tech economy. At present rate of growth, benchmarked by patent registrations, China will become the World’s most innovative nation by 2012.*
We met with five prospective client companies on our last trip, four of which are in the environmental and creative sectors and all had significant IPR and patented technologies, are enjoying very rapid revenue and profit growth in the home market and all have global potential. We also met with a number of Chinese companies actively seeking investment opportunities outside China and we will be bringing these companies into the bidding process where appropriate.
Below are extracts from an article published in ‘Beijing Business Today’ based on an interview with Steve Rebbettes, BCMS operations director, about our co-operation with DDF.
Chinese creative industry is a "rich seam" for British entrepreneurs
"Foreign media reporting about China can often be negative, a common theme is that China's creative industries are 'pirated' or routinely copy from other countries. In my first visit to China last year, I found that China's creative industry is very advanced, it is a 'rich seam' in my eyes,” says Steve Rebbettes.
The Chinese creative industry may be one of the best kept secrets in the World. To date, China’s reputation has predominantly been as a source of cheap labour. "Made in China" is a stamp often seen on goods produced for Western markets, not least of which, is the very high percentage of goods for the US and UK consumer. The very significant shift to a more innovative and hi-tech economy that has been taking place over the last decade in China though, has gone largely unreported in the West.
"From this fact-finding visit and the information gathered we now have a much better understanding of the Chinese creative industry. We will publicise this understanding in the West. Through the co-operation with DDF, we have gained a deeper appreciation of China's creative industries and seen for ourselves that original design, research and development activity is very strong here" said Steve.
Co-operation with DDF - first time into Chinese creative industry
As a UK M&A specialist, BCMS Corporate’s core business has traditionally operated in Europe; China is its first venture into Asia and its co-operation with DDF is an important part of its work in the Chinese creative industry. "BCMS aims to provide M&A services to the Chinese creative industry – the main reason we have chosen to work with DDF is that through its own work, it has attracted the best creative talents in China. BCMS Corporate hope to provide a platform for these great creative talents to open up better prospects for growth – at the same time, deploy its professional M&A services, to meet the precise needs of SMEs in attracting investors and provide a further boost to growth at home and in overseas markets."
To this end, BCMS Corporate and DDF have signed a co-operation agreement to provide a service to Chinese companies enabling them to assess, and then, where appropriate, access international financial & investment opportunities.
"At present we are looking for good opportunities, the DDF ‘Dalian Design Festival’ is a good opportunity for us to reach more businesses with a view to providing support and advice in key areas including financing, opening up overseas markets, equity transfer, as well as inbound and outbound M&A." BCMS Corporate’s Director said.
BCMS Corporate will offer support in the Dalian Design Festival, including free seminars and lectures to entrepreneurs – a large number of entrepreneurs do not have experience in M&A, such help from BCMS Corporate is invaluable.
The Focus on creative industry
“BCMS Corporate provides services to enterprises in all industries in the United Kingdom and other countries, including the creative industry. For example, we recently sold an advertising company specialising in advertising in Railway Stations across the UK; by using us, they achieved maximum value, a price significantly above the owners expectations,” explained Steve.
In addition to the creative industry, BCMS Corporate is planning to work in sectors such as energy, brands, hi-tech, environmental and other hot sectors in China, "We will make use of our professional experience and knowledge to provide the best service. In the initial stage, we will proceed carefully with our China business development plan, adapting to Chinese culture, so that our service accurately reflects needs and expectations, making for a more conducive, smooth development and follow-up.
"We hope that by adjusting our services we can deliver a perfect service to Chinese creative and other industries. We will be undertaking a limited number of projects, and gradually adjust our model of operation in order to eventually adapt to the Chinese market," he continued.
Talent finding is the core strategy
“In the creative industry, there are many exceptional companies in China across all sectors, the need to understand Chinese culture in the context of design will become increasingly important for many Western companies. Chinese design talent will be, we believe, much sought after,” says Steve Rebbettes.
Based on an interview and original article which appeared in Beijing Business Today by Reporter Nili Liu, 18th May 2009
For more information on BCMS Corporate and China contact Andy Hunt, Strategy Development Manager or, Steve Anstey, International Business Development Manager on 01635 296191.
*Source: Thomson Reuters report, Patented in China, by Eve Y. Zhou, PH.D., and Bob Stembridge.