Shanghai
Rising from a riverside setting adjoining Kevin Chan thinks exposure on the world-
Pudong’s contemporary skyline, its theme ‘Better wide stage can do nothing but help Shanghai’s
Doing BuSineSS in
City, Better Life’ is a vision of a sustainable growth: ‘Expo will create marketing opportunities
Shanghai
urban future – appropriate also for Shanghai’s for Shanghai, its reputation and credibility
In setting up in Shanghai – or indeed
long-term dream. While the major sponsors enhanced. Such exposure is likely to bring in
anywhere in China – there are factors to
and infrastructure development are mostly more investment with companies wanting to
obviously carefully consider:
in place, companies can still get involved in tap into the Chinese market, so promoting more
1. Is the product suffi ciently different from
promotional activities with opportunities construction and maintaining a momentum that
existing? What can we offer?
planned around events in hotels and centres is already there.’
across the city. Expectations for Expo are very
2. For most locals pricing is a more
high, with Shanghai currently in the middle of BacK acroSS the BunD
important factor than the complexity
frantic infrastructure upgrading. Alongside the Shanghai manages to combine its historic legacy
of the service or product. Is the product
metro network increasing to around 400km, with its new image. In 2004, Chinese American
suffi ciently different to encourage a level of
20,000 quality rooms will be added to its already entrepreneur Handel Lee saw the Bund’s potential
sales that will ultimately yield profi t, even
prestigious hotel sector. as he developed ‘Three on the Bund’ out of the
faced with local competition?
stately, but redundant, Union Building. With Michael
3. Is it better to establish a wholly-owned
for western companies
Graves’ designed ‘spaces’ fi lled with a galaxy of
foreign enterprise (WOFE) or a joint
coming new into the China
top-brand tenants including Giorgio Armani and
venture? If a joint venture, who should be
a host of fi ve-star restaurants, it represents ‘a
the partner and is there suffi cient in it for
market, locating in Shanghai
celebration of contemporary fi ne living where art,
them?
can be very attractive,
culture, food, fashion and music converge to inspire
a richer life.’ The development refl ects an increasing
4. What local government policies/support
depending on their type of
sophistication amongst Shanghai’s top-end
systems are there to assist new businesses?
business consumers, aspirational people wanting something
5. To work through local regulatory
different to international shopping malls.
requirements it is vital to hire qualifi ed
While the recession has hit the hotel sector, Paul Liu, another pioneer behind ‘Three on
experts with extensive local knowledge.
with certain luxury projects put on hold, others the Bund’, similarly felt that ‘a city should not
are forging ahead. Langham Hotels recently only be about money, but to be truly global, it
6. Viewing current market situations, and
opened its Yangzi Boutique. Bob Van Den Oord, needs a whole range of other ideals including
allowing for regulatory lead-time, when
vice-president of sales and marketing, comments: a strong cultural and artistic life.’ CEO of Axon
is the best time to move into the market?
‘We would love to open it in a better time but we Concepts, he is the driving force behind ‘1933’,
Now – or ‘wait-and-see’? Could we leave it
will come out of this fi nancial crisis soon and the the rejuvenation of a former art deco abattoir
too late and fi nd that the space is taken?
hotel will be positioned well in the market.’ Ritz- into a centre concentrating on lifestyle design
7. Planning for human resources. Is there
Carlton Pudong will open in April 2010, just in attracting ‘hip fashion’ retailers including
suffi cient qualifi ed local talent – how to
time for Expo. According to Hong Hao, director of American Apparel’s fi rst Chinese venture and
attract and retain them – how many expats
the Shanghai World Expo Coordination Bureau: design fi rm, Omnicon Corporation.
would initially be needed for training?
‘At certain peak times we could have 800,000 Shanghai’s fi rst lifestyle centre, Xintiandi,
Expo tourists in a single day.’ emerged from an area of restored traditional
8. A city like Shanghai is a big place – where
shikumen (‘stone gate’) houses on narrow alleys.
would the best location be to set up shop?
Today it is shared between expats and upwardly-
Again, detailed local knowledge is vital.
h Matts
mobile locals. Shanghai has a dazzling range of
9. It can be challenging to set up an
.com/Ric
restaurants and bars but, for businesses venturing
operation that not only complies with group
kphoto
iStoc
into this sphere, it is a very competitive. Dan
policy but also fi ts with the aspirations of
Margo, who lived in Shanghai until recently,
local employees and local practices.
explains: ‘In our time there we saw a lot of
restaurant bars come and go, with only a few
10. To ensure that things are done correctly,
breaking through and surviving; some high-
companies need to ensure they have in
profi le venues only lasted six months. Shanghai
place clear and consistent goals.
is a very tough and uncompromising city to
open a restaurant or bar in unless you have a
strong concept. Some that broke through were Reading this article is
part shop/part restaurant venues, such as a wine
worth fi ve points towards
shop and tapas bar called Inoteca. Location and
the Institute of Export’s
The trendy Nanjing Road offers
concept is crucial. You cannot just rely on the
Continuing Professional
Shanghai’s shoppers the best of
expat crowd and need something tailored to the
Development (CPD)
West and East.
programme.
wealthy Shanghainese.”
pathfinder buSineSS l JUNE/JULY 2009 23
PBS12 pp20-25 Shanghai.indd 27 5/6/09 15:27:12
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