Why Feasibility Study in China?
When considering and planning a potential project of market entry, decision-makers need to make the most informed decision to ensure a smooth market entry and risk-free investment. Daxue Consulting provides services of feasibility study in China to help you determine the viability of your project and collect the details you need to secure your future investment.
A feasibility study significantly reduces the risk of approving a business plan that is based on too many assumptions. If some adjustments to the plan have been made based on a study, then you can save funds that would have been spent with no return. In the case of utilizing external resources, a good feasibility study is a pre-condition for obtaining such funds.
Our teams combine our expertise and experience of the local market into creative solutions that will minimize risk and maximize the value of your portfolio. If you are considering and preparing a potential project for the growth of your business in China, you need to base your decisions on accurate data and relevant information.
Our teams in Shanghai and Beijing will use our market sophistication and proven research methodologies to give you independent, precise advice on the risks and opportunities that the current market presents.
Feasibility Study in China: How Do We Work?
The feasibility study provides you an overview of the possible issues related to your business idea. It will help you to prevent risk and provides an opportunity for your future business in the chosen marketplace.
Daxue’s consultants will focus on the identification of red flags and deal breakers as well as key drivers of growth to ensure you a full and pragmatic overview of your situation in China. This includes:
- Providing an initial and primary overview of the regulatory environment and business practices to spot deal breakers
- You will gain a better understanding of China’s environment, target profiles, and existing offers
- Identify and evaluate client acquisition requirements in China
- Estimate the cost to enter the Chinese market
Moreover, identifying the pros and cons can help you to understand more of the market, and provides you with the most relevant information that will be necessary to build a complete business plan. This is an important step that provides you the basics of your future market entry.
Finally, in the process of a feasibility study in China, our consultants will assist the decision makers whenever they need to assess alternative opportunities and will suggest the best options for risk-free investments and smooth market entries. Our final feasibility report includes the following:
- A brief description of the business to assess possible factors which could affect the study
- The part of the business being examined
- The human and economic factor
- The possible solutions to the problem
Feasibility Study Deliverables
Daxue will assist our clients with a written report that summarizes findings from the verification of all inputs, and an appendix with calculations. Calculations are usually a forecast of financial reports for a defined period (typically five to ten years) or calculations of the Return on Investment (ROI). The report is usually presented in the following sections:
- Key goals of the business plan
- Evaluation of the proposed technology
- Evaluation of proposed deadlines and short-term objectives;
- Analysis of kick-off investments, set up management costs and running operation expenses
- Client acquisition costs and marketing investments
- Environmental context and its impact on the business, with a specific focus on real estate situation and regulation
- Market research and industry reports, including competition framework
Case study: Customer in the Fashion industry
A clothing company specializing in Cashmere products, with several of years of operations in Europe, was looking for a rapid entry and growth in the Chinese market. Our client wanted to quantify their growth opportunity for its particular quality product lines in two main cities of China: Beijing and Shanghai. The feasibility study helped them to identify the actions necessary to develop a thorough market strategy.
Daxue’s team in Beijing and Shanghai has developed a general market entry feasibility and attractiveness study in different cities in China. The project involved in-depth discussions with consumers and retailers. This allowed Daxue Consulting to gain insights into the growing segments and the gaps between the two cities.
The project phases consisted of:
- Analyzing the profile of niche markets with in-depth interviews
- Understanding the trends within different cities
- Providing a broad understanding of competing for offers and pricing
- Defining a market entry approach, with the identification of physical distribution channels and route to market
Along with a feasibility study, we are also able to provide the following:
- Evaluation of Alternatives – A feasibility study is usually conducted after producers have discussed a series of business ideas or scenarios. The feasibility study helps to “frame” and “flesh-out” specific business situations so they can be explored in-depth. During this process, the number of business alternatives under consideration is usually quickly reduced.
- Pre-Feasibility Study – A pre-feasibility study may be conducted first to help sort out relevant scenarios. Before proceeding with a full-blown feasibility study, you may want to do some pre-feasibility analysis of your own. If you find out early-on that the proposed business idea is not feasible, it will save you time and money.
- Market Assessment – And a market assessment may be conducted that will help determine the viability of a proposed product in the marketplace. The market assessment will contribute to identifying opportunities in a market or market segment. A market assessment will provide much of the information for the marketing feasibility section of the feasibility study.
- Results and Conclusions
To know more about feasibility study in China, please contact us.