Case Study
Assessing feasibly enables company to avoid losses, invest in high-return strategy
Client Profile
Mobile Co. is a retailer of mobile consumer electronics. Products and packaging are manufactured in Mainland China for retail in Greater China and other high-income consumer markets. Their products include a range of mobile devices and accessories.
Client Challenge
The company was preparing to make a major investment in mass production of several product types in China. However, they had two concerns: 1) was their contract manufacturer capable and reliable and 2) was their plan feasible given in the Mainland China market given recent regulatory changes?
Our Approach
Mersol & Luo addressed both challenges by carrying out due diligence on the local contract manufacturer and assessing recent regulations and their probable impact.
Utilizing the findings from due diligence and feasibility assessment we were able to advise Mobile Co. on opportunities for investment that would deliver returns in line with their target and ultimately lead to growth. We consulted with Mobile Co. through the process of finding a more capable and reliable contract manufacturer.
Result
Working with Mersol & Luo, Mobile Co. shifted investment to the manufacture and sale of products involving lower risk and returns in line with the company’s target.
They also switched to a contract manufacturer with the proven capabilities and timely reliability required. This saved the company large sums in avoided losses and kept them on track to meet their annual revenue and profit margin targets.
In the 16 months after Mersol & Luo consulted Mobile Co.
34%
4
new products
27%
importers and distributors
*We protect the confidentiality of our clients. Although the name has been changed, the results are real.
About Mersol & Luo
Mersol & Luo’s expertise on the Chinese economy assist global companies in ensuring their expansion to China is appropriately prepared for to maximize profits and market impact. By having local understanding, relationships and real-time trade experts Mersol & Luo guides you through the process.
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