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Consultancy in China

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After China`s accession to WTO, further internationalization of Chinese enterprises gives rise to the emergence of consultancy and stimulate its expansion in China. Consultancy industry is playing an increasing role in promoting China`s economic growth. With the entry of international consulting companies into China`s consultancy market, local consultancy industry began to learn from advanced competitors and has been gradually rising up. Consulting service has penetrated into every corner of economic development of China and is resulting in profound changes.

Consultancy in China cover the whole business landscape

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Nowadays in China, consulting services are divided into several categories which cover a wide range of industries from sciences to engineering, from education to business, such as comprehensive consulting, financial advisory in China, investment banking, management consulting, market planning, market research, advertising, public relations, human resource, head hunting, information services, engineering and technological consulting, accounting and law. The support of consulting companies is from various channels: government, academic institutions, state-owned enterprises, listed companies or self-operated. Overseas and local management consultancies offer a variety of services throughout the country, from customer relationship management to supply chain management, from human resource to marketing strategy, etc. Management consultancy industry has covered all aspects that a company might need to enter China market.

Consultancy in China still shows great potential

By the end of 2012, the number of registered consulting companies was about 130 thousand in China, among of which management consultancies accounted for around 10%. The real amount of consultancies in China was no more than 100. However, only a limited number of management consulting institutions employ more than 300 people and has annual sales over 10 million RMB.

While at the same time, there are more than 8 million business entities in China, including state-owned enterprises (6.62%%), private-owned enterprises and joint ventures (79.06%), enterprises located in Hong Kong, Macao and Taiwan (1.23%), foreign-owned enterprises (11.75%). Still, the growth of consultancy and the value of investment in this industry in China are revealed in main trends below.

First, consultancy and information technology has been linked inextricably with each other. Competitive knowledge of IT is a booster for the prosperity of consultancy. In the future, e-commerce among a small group of consulting companies will become a reality.

Second, more regulations and policies will be established by the government. There is also an increasing demand from the government and public institutions. Intensified social and economic reform calls for professional consultancy team to provide service to guarantee the implementation, ration and effectiveness of policies. This demand breaks the traditional belief limiting consultancy in commercial and technological area.

Third, with the development of international cooperation, it is expected to see international or local consulting companies in China stand out to lead the fads in consultancy sector, create applicable theories for the world and attract foreign investment to China.

See also : Daxue Consulting in Reuters / China news


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