Category Archives: Accurate Group

Accurate China Insight: How much does a China sourcing consultancy typically charge in fees or commission for supplier identification, negotiating, inspecting, and product shipment?

It’s unlikely you will receive a public declaration of charges by a ‘consultancy‘, which is akin to asking how many drops of water are in a bucket. Charges (whether hourly, fixed fee, or on a commission basis) can vary that much.

If you think it’s expensive to hire a professional consultant to advise you on doing business in China wait until you hire an amateur to do the job

“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job”

Here in China many dubious consulting companies claim to offer the services you require, so the first box you need to tick is making sure the sourcing consultancy you eventually work with can reduce your overall costs, reduce your time to market, and improve the quality of your product, thus making the charges worth it. Actually, the sourcing consulting company should be able to save you and your company money overall, even with their charges.

In general, experienced and reliable sourcing consultants, who are not ‘fly by night,’ should make the overall supplier identification, negotiation, inspection and shipping (product import) processes faster, cheaper, and result in better quality control.

Simply put, when it comes to separating fact from fiction says Niall O’Reilly, a China business consultant with over 24 years ‘on the ground’ China business experience:

“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job!”

Accurate Group an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign businesses in China

“要知道怎样前面的路怎么走,最好问从前面返回的人” “To know the road ahead, ask those coming back” (Chinese Proverb)

So you may now be asking yourself “how do I distinguish average sourcing consultants from the professional?”

The average sourcing consultancy will only contact factories and manage communication between you and the factory…and little else.

The best professional sourcing consultancy will employ its considerable experience to evaluate the strategy of your company and engage in a strategic sourcing process that ensures your particular company needs are met. They will not only manage communication with factories in China, but they will anticipate potential risks, and either resolve the problems or develop contingency plans for such issues before they occur. If unforeseen problems do occur, and here in China they will occur, the sourcing consultancy is there to solve the problem and improve procedures so it is controlled in the future.

The Chinese Proverb “一分钱一分货” (pronounced “yi fen qian, yi fen huo”), which translates literally as “one cent gives you one cent’s worth of goods”, succinctly sums up the answer: “you get what you pay for”!

Source: Accurate China Blog – http://www.accuratelimited.com/blog.view.php?id=aFcU1cUL1jw=

Accurate China Business Advisory and Sourcing Consultancy: 24 years "on the ground in China"

Accurate Group is an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign companies in China

So here is a public declaration of Accurate Group’s consulting fees: We have a basic charge for the opening consultation and initial advice. Thereafter, for a formal engagement our fees are structured according to our clients  specific requirements.  The fee arrangements can be hourly, contingency, flat-fee, or commission-based.

Niall O’Reilly

Managing Director, Accurate GroupIreland China Product & Business Development (Export Sourcing Import) Consultancy

Tel: +353 1271 1830 / +86 152 5719 4468

http://www.accuratelimited.com

This Accurate China Insight originally appeared in the Hangzhou Business Network (HBN) forum: 

http://www.linkedin.com/groups/Hangzhou-Business-Network-HBN-803177/about?trk=anet_ug_grppro

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September 26th 2012 – Irish Exporters Association / Asia Trade Forum China Business Briefing: “Capitalising on China’s growth – An Accurate Guide to business and investment in China”

In his capacity as Director for China, Irish Exporters Association and Asia Trade Forum, Accurate Group Managing Director Niall O’Reilly will host a roundtable discussion at the IEA’s Dublin HQ titled “Capitalising on China’s growth: An Accurate Guide to business and investment in China”.

You’ve read and heard all about China’s abundant market opportunities, yet the perceived enormity of the task involved is holding you back. What is the impact of rising labour costs in China? Can’t speak the language, don’t understand the culture? How best to take advantage of the burgeoning consumer market there? What are the advantages of setting up an office in China? Want a quick solution? Are you up to speed with the latest regulations and certifications? Do you have the right contacts in local government?

This special Irish Exporters Association / Asia Trade Forum briefing / discussion for senior managers representing information and communication technology (ICT) companies in Ireland either engaged in China business are close to taking that giant  leap of faith into China is a “must-attend” event you certainly do not want to miss!

Given Niall’s 24 years China business experience (see bio below), at this Irish Exporters Association / Asia Trade Forum roundtable briefing you will hear of insightful answers and approaches to China business you probably haven’t heard before.  The IEA / ATF and Niall  are also delighted to highlight the attendance of long-time friend Mr. Chaoqun “Clive” Zhu (see bio below), Investment Promotion Manager at the Suzhou Industrial Park Science & Technology Development Company (SIPSTD), who is visiting Dublin and will be speaking at what promises to be an interactive and insightful meeting.

For further information click on http://www.accuratelimited.com/blog.view.php?id=QFU0QrsoXZ8=

 Would you like to attend?

If you wish to attend please RSVP to Niall O’Reilly (Mobile 0877984071) niall@accuratelimited.com / or Ashley Beston  AshleyBeston@irishexporters.ie by 2:00pm tomorrow Tuesday 25th. Tea and coffee served.

Please note that since the IEA boardroom can only accommodate about 15 attendees, attendance is RSVP Only with requests to attend being accepted on a first-come, first-served basis.

Location / Time

September 26th 9.00 am – 11.30 am

Meeting Room

Irish Exporters Association

28 Merrion Square, Dublin 2

Google Map:

http://maps.google.ie/maps?q=Irish+Exporters+Association,+Dublin&hl=en&ll=53.341841,-6.247101&spn=0.028851,0.084543&sll=53.3834,-8.21775&sspn=7.381528,21.643066&oq=irish+export&hq=Irish+Exporters+Association,&hnear=Dublin,+County+Dublin&t=m&z=14&iwloc=A

About Niall O’Reilly

Niall O’Reilly, Director for China, Irish Exporters Association / Asia Trade Forum, has 24 years China business experience with executive management involvement in six Asia-region start-ups for global organisations including Dell, Gateway, Marrakech and AEP Networks. Niall is a recognised commentator on Chinese business and governmental affairs and is known for initiating and organizing high-profile international events including the visits by Fortune 500™ CEOs to Asia plus the visits by mayors of leading Chinese cities to Ireland.

Niall is also Managing Director of Accurate Group Limited www.accuratelimited.com, a strategic Ireland-China business services advisory and consulting practice (with offices in Hangzhou, China and Dun Laoghaire, Ireland) dedicated to building new opportunities for Irish businesses in China. In 2009 he founded the Ireland China Business Network (ICBN), which now has over 1,200 active members. Niall has a B.A. degree in economics and politics from University College Dublin.

About Clive Zhu, SIPSTD

A recognised expert in China FDI, Mr. Chaoqun “Clive” Zhu, Investment Promotion Manager, will be accompanied by his colleagues Mr. Di Ma, Assistant General Manager, and Ms. Yun Xu, Senior Investment Promotion Executive at the Suzhou Industrial Park Science & Technology Development Company (SIPSTD).

Founded in April 2000, SIPSTD is the state-owned enterprise fully responsible for the development, construction and management of Suzhou’s International Science Park (SISPARK) http://www.sispark.com.cn/english/index.aspx, which is widely considered China’s most successful and innovative industrial park model.

About the Irish Exporters Association (IEA)

One of Ireland’s leading private sector organisations, the Irish Exporters Association is the “Voice of Export Industry” in Ireland, representing the whole spectrum of companies with the export industry.

http://www.irishexporters.ie

About the Asia Trade Forum (ATF)

The Asia Trade Forum was established in Dublin, Ireland to promote new strategies for Irish exporters to build trade with Asian markets. The Asia Trade Forum is part of the Irish Exporters Association.

http://www.asiatradeforum.org

Niall O’Reilly

Director for China, Irish Exporters Association

Managing Director, Accurate Group – China Product & Business Development (Export Source Import) Consultancy

Tel: +353 1271 1830 / +86 152 5719 4468

http://www.accuratelimited.com

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Accurate China Insight: ‘China’s business gateway to Europe’ – Is Ireland’s idea of ‘China Engagement’ self-deluding?

The future success of Ireland's China engagement policy lies in embracing bold initiatives that stand out from the crowd.

The future success of Ireland’s China engagement policy lies in embracing bold initiatives that stand out from the crowd.

In light of the growing realisation, as highlighted in Eddie O’Connor’s (Founder of Mainstream Renewable Energy) opinion piece in the Irish Times, dated 7th October, http://www.irishtimes.com/newspaper/opinion/2011/1007/1224305386447.html that over the next decade China is likely to present more business, educational, and tourism opportunities for Ireland than any other country, is it not the case that we are seriously deluding ourselves into thinking China will provide such economic deliverance unless our policy makers embrace a new radical approach to engaging China?

Bearing in mind every other country in the western world is courting China’s Yuan currency, how about each government department being directed to devise a five-year plan regarding how best to position Ireland as China’s gateway to Europe? A junior minister with a special portfolio covering China would be responsible for monitoring the plan’s implementation.

In the meantime, while waiting for Chinese companies to make the investment decisions we see as so vital to our future, the Government should also consider practical initiatives aimed at making China market entry easier for our small and medium-sized businesses.

For instance, a feasible and cost effective approach for small and medium-sized businesses, involving a sharing of incubation office, administrative, legal, financial and logistical resources, would be the construction of a Government supported IDA-style ‘Irish business park’ on land leased from one of many enthusiastic municipal or provincial governments in China. Such a valuable enterprise could be carried out under the auspices of a public/private partnership, with special tax breaks offered to encourage Irish businesses to establish their offices. There is a prescient: In the mid-1990s Singapore leased land from the Suzhou Government to build what is now a key gateway to China for Singapore businesses: The Suzhou Industrial Park.

The future success of our China engagement policy lies in embracing bold initiatives that stand out from the crowd.

Niall O’Reilly

Accurate Ireland – China Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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Accurate China Insight: Should the Ireland propose a free trade agreement with China?

Given Ireland’s financial predicament the need for hard cash in order to create jobs makes for an enticing prospect of going it alone and negotiating a Free Trade Agreement between Ireland and China.

However, cutting a separate deal with China for more business deals over the short-term would be viewed as playing into a China strategy aimed at splitting EU unity by buying off so called ‘peripheral members’ and pitting them against larger members, which in the long run is likely to run against the interests we share with fellow EU members.

China denies it has such a strategy arguing, with considerable merit, that no matter what it does with its money vis-à-vis EU-related investments there will always be detractors. Moreover, as you can see in the insightful “Scramble For Europe” article http://www.ecfr.eu/page/-/ECFR37_Scramble_For_Europe_AW_v4.pdf (from the European Council of Foreign Relations), the EU already appears fractured over the approach individual members have taken with respect to their dealings with China, for whom addressing their current financial woes is the matter at hand: tomorrow and the long term cohesion of the EU can wait.

Accurate China Insight: Should Ireland propose a free trade agreement with China?

Should Ireland propose a free trade agreement with China?

Niall O’Reilly

Accurate Ireland – China Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com/blog.php

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Accurate China Insight: If your business is product sourcing: How competitive is the ‘Made in China’ brand?

Despite the Chinese Government’s past success at restraining inflation, accelerating food, fuel, raw material and labour costs have resulted in a widely held belief that average inflation rates of 4 to 5 percent are here to stay in China, at least over the over the next decade.

Which raises the question: With rises in wage and manufacturing costs set to be the norm is China still competitive as a product source for Ireland’s importers? Accurate China Insight: If your business is product sourcing: How competitive is the 'Made in China' brand?

Ireland’s importers are right to exercise caution when sourcing from China.  However, China still has much working in its favour:

  1. China is politically stable, and such stability is good for business
  2. Low cost countries surrounding China are also weathering an inflation contagion, with inflation rates in Vietnam, India and Pakistan increasing at a much faster rate.

June 2011 Inflation Rates:

Vietnam 20.8%

Pakistan 13.3%

India 8.7%

China 6.4%

Indonesia 5.5%

Malaysia 4.6%

Philippines 4.6%

Thailand 4.1%

(Sources: Respective country central banks) 

3.  Production costs in China are still low, despite rising costs.

4. Skills levels are generally high. While China’s factories could be said to be still at an early stage in their execution of innovative manufacturing techniques, their production processes are still well ahead of similar production operations in surrounding low cost countries.

5.  The striking effects of the ‘Clustering’ in China’s three economic powerhouses [Pearl River Delta (from Hong Kong to Guangzhou), Yangtze River Delta (Hangzhou, Suzhou, Nanjing and Shanghai) and the area around Beijing and Tianjin] which have resulted in the construction of excellent infrastructure, a concentrated material supply chain, and an experienced and skilled labour force.  There is no evidence of such a clustering blend being prevalent in other surrounding low-cost countries.

6.  Productivity and industry familiarity.  While the costs of labour and logistics, as well as labour availability, are driving up factory output costs along China’s coastal rim, cities in central and China, such as Wuhan, Chengdu, Chongqing, Zhengzhou and Hefei, and their surrounding provinces, are much more cost competitive with respect to the manufacture of products in which the value-added and process complexity is low.  Meanwhile, the coastal manufacturing hubs, with their knowledge of particular manufacturing industry sectors, are becoming more focused on complex, skill intensive factory production.  In surrounding low cost countries such instances of high productivity levels and industry knowledge are limited.

The biggest issue for Ireland’s importers relates to fluctuating oil prices and their impact on the cost of shipping products sourced from China to Ireland, which is a worldwide occurrence.

Source:

Niall O’Reilly

Director for China, Irish Exporters Association

Accurate Ireland – China Business Advisers – Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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Two days in January: Guinness, drugs, bar brawls in China, the Gardai (Irish Police), and a roller-coaster

Saturday 10th / Sunday 11th January

Irish and Chinese pub scenes

Last Sunday appears a bit hazy, but now come to think of it, that’s probably due to the four pints of Plain (Guinness) I swallowed the previous Saturday evening with close friend and business partner P at the swank (for Dun Laoghaire at least) setting of Bordega’s Bar −well it used to be when it first opened as the 40 Foot Bar.

We didn’t mention the ‘A’ (Accurate) word once, except to remind ourselves not to mention the ‘A’ word (we’d our thinking caps on all week long planning our line of attack for 2009 and it was now time for a break, let the hair down). More to the point, there were far too many distractions in the Pub, and I’m not referring to the overly cosmeticized peroxide blondes, or the Chinese bar-tenders speaking in a Dublin dialect…. “How’r yah…what’ill yah ave” and the like. Dalian seemed another planet away.  No, the highlight was the barney (argument) between what appeared to be a Concerned Parents Against Drugs parent who over in the far corner of the bar had confronted a peddler of death and destruction, otherwise known as a drug dealer (like their European neighbours, Ireland’s towns and cities are blighted by the scourge of cocaine, heroin, and just about everything else that has caused indescribable misery for so many families). “They were having words”, as we’d say in Dublin, and things were getting a bit heated. Perhaps it was the drink, I initially thought. Nothing too unusual so far until the unremarkable looking parent, a man in his 50s, suddenly pounced on the à la mode dressed dealer, a man in his 20s. All hell broke loose, and fists were flying.

The pub’s brawny, bald and tattooed security people (we call them “bouncers”) excitedly swung into action, burying themselves in the mêlée to the point where it was difficult to make out who was who.  In due course, however, the well-practised bouncers emerged from the fray with three louts and the parent, all of whom were strong-armed from the bar.

[As an aside, I just had a rare ‘Niall deliberation’. At least three additional bar brawls and one street fight have been observed by myself over the years, and all in China…  :

  1. In 1989 I was drinking in a bar, one of those cosy diminutive bars typical of Beijing at the time, which was owned by a local Chinese friend and his English wife. Three sinister looking, thug-like, plain clothes policemen dressed in black leather jackets were seated in a dark corner apparently playing cards. They had been following my friend around for weeks. The Government didn’t like the fact he was becoming quite well-known outside China for expressing opinions they considered to be ‘counter revolutionary’, and they were taking every opportunity to harass him. Imbibing with me were  BW an Irish diplomat, and Didi, a Nigerian diplomat and Didi. Suddenly a full bottle of beer came hurtling through the air smashing against the wall within an inch of Didi’s head. One of the thugs pretending to be swaggered his way to our table: “Hei ren zou ba!” (black man get out!). We left abruptly.
  2. In 2000 I was drinking in a bar in Hangzhou with an Italian friend and two local female friends. A thug at the bar clearly very drunk was taking exception to two local ladies drinking with foreign men. He wobbled over to our table and asked the girls to leave, before cursing them in Chinese. The noisy bar Kana Bar turned eerily quiet. We ignored him, which made him even madder. Eventually, still full of bluster he turned around and headed back to his Russian and American friends gutlessly seated at the bar. We thought the intense stand-off was over, were congratulating ourselves when suddenly a wooden bar stool swished by us before crashing on to someone else’s table, whereupon all hell broke loose. Tables and chairs were flung everywhere… The four of us hide under the table before crawling out the door, untouched. Incidentally, the Russian guy at the bar is one of the most feared people mafia types in Hangzhou, while his American friend runs a bar and language school in Hangzhou.
  3. In 2002 was enjoying the Salsa at Hangzhou’s popular Night and Day when suddenly a large street-level window disintegrated from the force of a street sign post lobbed through it. A fight ensued, and there was a lot of blood… Within five minutes all was over. Apparently, the owner of the bar had fallen out with some local thugs.
  4. Oh and the fight on a street in Suzhou between two women, squealing like injured pigs, pulling hard at each other’s hair and scratching each other with their long nails, and a crowd of onlookers egging them on, nobody brave enough to intervene, least of all myself.

Curiously in all four incidents, not a uniformed policeman in sight. But I digress…]

Meanwhile back in Bordega’s a sense of normality had been restored, not that the tussle had really distracted us:  The pints and the crisps were going down well. We were having too much of craic (as in Irish for “fun” not to be confused with the Crack derivative of heroin) nattering on about our existence when about six members of An Garda Siochana  (the Irish Police) appeared from nowhere.

The Gardai have been a source of public dissatisfaction for years (some would say deservedly so, while others would say the Force shouldn’t be judged on the indiscretions of a few black sheep) on account of past recklessness including bribery, beatings (they were particularly partial to a good old-fashioned riot, especially the anti-Establishment anti-Globalisation protests run by a motley mix of Guevaraesque leftist students, anarchists,  greenies, students,  and other ‘new-age’ thinkers where they could swing their batons at will), doctoring evidence, being a little too close to certain politicians, and bumbling ineptitude.

How times have changed. After this particular Saturday night, no more will I paint all Gardai with the same villain brush, but rather they have earned my wholehearted admiration and respect. Watching them vigorously go about their work with a strong sense of purpose and duty it was clear to me this ‘new look’ Irish police force, dressed in their standard issue anti-stab vests (they don’t carry guns), has learned not only to be politely civil (they now speak clearly enunciated English, as opposed to heavily accented country-speak!!. In the 1980s a UK publication referred to them as akin to thick lumps of red meat from the mountains of Kerry, ape-like), but projects an appearance that is able-bodied, robust and confident, a clear force for the  thugs, who of late seem to gaining the advantage, to reckon with.

They courteously asked several men who they suspected of being involved in the fight to join them outside, while at the scene of the initial argument a Garda was down on all fours minutely searching the floor…. Hopefully, in his haste to defend himself from the irate parent, the ‘merchant of death’ had dropped enough traces of the misery he peddles for the Gardai to take him off the streets for a few years at least.

But really, for what they have to deal with in a daily basis I say “hats off to the Gardai”…which reminds me of the time in my youth when a friend of mind, the worse for wear after a few post international rugby match drinks too many, grabbed the hat off the head of a Garda, and started sprinting down the road.. the Garda gave chase but after about thirty meters was huffing and puffing.  Not anymore.

Still what I actually did on Sunday is still a bit obscure (now blaming the void in my brain on the jet lag)… I remember the delicious dinner of stuffed pork cooked by Mum and the bottle of Romanian red wine.

Investing in an Investor and ‘Cast-iron guarantees”

Ah, another rare ‘Niall deliberation’ has occurred. The call from Tim S, the prospective investor in ‘A’, which brought me to my senses with a thud:

“I talked to three potential investors, and they won’t be putting their money into A unless you can provide them with a cast iron guarantee of a return of investment….  but I consider what you are doing in China to be the future for Ireland”… So says Tim S. who had recently lost his shirt to the tune of €300,000 from investments in AIB, a leading Irish bank tethering on the brink of collapse (I was quick to tell him I’d lost an additional part of my clothing in the hugely over-hyped Marrakech, a memory which still touches a raw-nerve, so we’ll leave that one there).

So the NSP team that is A have put together a solid investment proposal for a business which based on some of the exciting programs coming together at last will see investors being repaid with a nice big interest within 24 months.  I am told by the movers and shakers in Ireland’s investor community that 12 months ago, given the scope for two of the key projects we are working on, and the specific plan to build a strong, stable and well-branded business, we’d have had investors queuing up.

Now the buzz term used by the private investors, venture capitalists, and banks  when turning down an investment proposal or a loan request is there need for a “cast iron guarantee” of return on investment.  Of course this is pure nonsense. Nobody can give a 100% guarantee about anything these days.

The reality is the fear of much worse financial turmoil to come, and no person, company, or bank wants to part with money they already have.  With banks not lending and investors not investing, or, worse, tightening the screws on ordinary people and businesses, they have already loaned to or invested in, there is a burning need for Government to restore confidence by decisively taking the lead in stimulating demand. Alas the half-hearted Irish Government appears like a deer standing in the middle of a dark road dazed by the headlights of an oncoming juggernaut.

Like many people running a small business, Sunday’s sleep was troubling at best: the ‘A’ dream roller-coaster analogy trundles forward at full-speed: front seat passenger (the buck stops with me), white knuckles (hanging on for my dear life, trying to keep my eyes open), massive loop-the-loops (stomach churning highs and lows), followed by huge senses of elation and delight as the roller coaster flattens out and the expected calm returns. Yes, I am looking forward to looking back and telling myself “yes  the journey was hell, but the sense of achievement, having endured and succeeded are much more important than the pain and hardship, which we’ll eventually chalk down to experience”.

18412-desktop-wallpapers-change-your-world

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My new ‘green hat’: The Director For China, Irish Exporters Association

  Niall O Reilly - Director For China - Irish Exporters Association

    

Mr. Niall O’Reilly                                                             C.C.     H.E. Liu Biwei
Accurate Group Limited                                                             Ambassador of the People’s 
Suite 315                                                                                          Republic of China
Jujingyuan Yongjin Plaza                                                          40 Ailesbury Road
266-268 West Lake Avenue                                                       Dublin 4
Hangzhou
China 310002                                                                                  Mrs. Mary Whelan
                                                                                                     Assistant Sec. General
           Dept. of  Foreign Affairs
Mr. Alan Buckley
Director of China
Enterprise Ireland
5th April 2008
Dear Niall,
 
The Irish Exporters Association (IEA) wish to confirm your appointment as the IEA
Director for China, effective from the 1st of March 2008.
 
We are confident your wide experience in assisting businesses in China will be of
substantial benefit to Irish companies who wish to enter the market for direct sales
or for joint ventures, working through agents or distributors and sourcing goods and
services.
 
We look forward to your contributions in enabling the IEA’s Asia Pacific Trade Forum
deliver on its 3 year strategy 2008-2010 for China.
 
Yours Sincerely,
 
___________________
John Whelan
Chief Executive Officer, Irish Exporters Association
 

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