The Fudan MBA Program has collaborated successfully with the Lisbon MBA to launch the Portugal-China Lab that explored Chinese market strategy of Portuguese beer in 2011, and exploited Portuguese market’s potentialities of Chinese telecom enterprise in 2012. In the third year, the project is about formulating business model for a well-known Portuguese Luxury Men’s suit brand named “Dielmar” keen to develop Chinese green field. Comprised of 4 team members, Qiu Feng (previous Tekes-Fudan iLab member) and Si Yifei (previous MIT China lab member) from Fudan IMBA as well as José Maria Corte-Real and Cristina Ferreira from the Lisbon MBA, team is mentored by the faculty Prof. Qiu Lijin and Prof. Jorge Velosa from both schools.
Regarding two Skype video meetings among Fudan MBA, the Lisbon MBA and Pedro S. Pinto, the representative of client “Dielmar” in June of 2013, the tasks of the Lisbon MBA coming to Shanghai in July for two weeks were to not only interview relevant industry experts, but also store-checking of main competitors.
Figure 1: Expert interviews
In terms of total 11 expert interviews arranged, the team gained a clear idea of how a Portuguese company operated business in China, and fully understood the men’s apparel market in China as well. Experts of Burberry China, AC Nielsen, and ETAM group shared comprehensive insights of the whole value chain. The project team interviewed experts of the Orient International Holding Group, PWC tax services, and the Economic and Commercial Affairs Consuls of AICEP in Shanghai and Macau in order to find some operation solutions with relevant cost structures. Meanwhile, the key persons of HAVAS group, Shanghai Newspaper, and red bridge communications expanded the team’s minds about how to design an appropriate marketing plan by low budget.
Figure 2: Store-checking of competitions
In order to analyze the main competitors and position Dielmar in Chinese fragmented market map, it was considered as a proxy the store checking, conducted in Shanghai and Hangzhou, in July 2013. Totally the team checked more than 20 brands, including international and local brands. For luxury international brands, they were Brioni, Ermenegildo Zegna, Canali, Cerruti 1881, etc. For local brands, they were Youngor, Mayor, Dave´s Tailor, Mr. Joffrey, as well as the brands of Hongkong tailors and Chinese tailors. With taking Qiu Feng as a model, the team focused on price range, interval of delivery, product assortment and perceived quality to analyze competitors.
Although the team worked together over time and even in the weekend, they still went to the bund, Xin tian di and Tian zi fang, etc. and had a dinner of Chinese spicy lobsters and Shanghai dishes. For this kind of team building, it not only broke ice between two sides, but also made Portuguese side understand in-deep Chinese culture and customer behavior.
When the Lisbon MBA was back to Portugal, the project entered the second stage that both sides of team exchanged ideas and revised report by Dropbox collaboration platform and twice Skype video meetings each week. The actions were divided into two parts. The first part was to one on one interview total 10 potential customers who were business men between 30 and 40 years old about job categories, holding quantity of suits, acceptable price range and purchasing decision tree. That was a practical pilot about whether the value proposition of affordable, high quality, European style suit matched the customer needs and how to revise the value proposition. The second part was to formulate the report in terms of market trend, consumer insights, routes to market, competition and marketing mix, etc.
When Fudan IMBA left for Lisbon in Portugal on August 14th in 2013, not only Monastery of Jeronimos, Tower of Belem, but Dielmar store, the building of the Lisbon MBA and NOVA economic school as well attracted every one coming here by low profile cultural style and profound history.
In the face of financial forecast part, last but not least, the team determined to recommend the department store model of distribution channel rather than the shopping mall model that made loss financially. With fully preparation on final presentation, the team headed to the headquarters of Dielmar in Castelo Branco which was two hours’ driving away from Lisbon on the 26th of August in 2013.
Figure 3: Team working in Lisbon
After factory visiting of Dielmar, the final presentation was held, from 11:00 AM to 3:00 PM, and audience included Ana Paula Rafael (CEO), Carlos Rodrigues (CFO), Export Manager and Sales director, etc. It consisted of 4 parts, which were presented by every team member. Qiu Feng, from Fudan IMBA, introduced situation analysis at the very beginning. Then Si Yifei, also from Fudan IMBA specified market research. After that, Cristina Ferreira, from the Lisbon MBA, presented the marketing strategy. At last, José Maria Corte-Real, from the Lisbon MBA, explained financial forecast and what needed to be controlled in the real business world. Because the content of presentation illustrated was detailed and practical from macro market environment, Chinese media scene, insights of market research and consumer behavior to main findings and reasonable recommendations about route to market as well as financial forecast for Dielmar’s business in China, Q&A session was combined into the entire period of presentation. The breadth and depth of questions embodied the client really would like to enter Chinese market. Meanwhile, all the answers were figured out by walking in client’s shoes.
Figure 4: Final presentation for client “Dielmar” in Castelo Branco
Finally, Prof. Jorge Velosa and Prof. Qiu Lijin made brilliant comments. Meanwhile, Ana Paula Rafael, CEO of Dielmar, concluded that it was very difficult for her to imagine the 6-person team can develop so much detailed research and recommend such a practical business model within merely two months. For two students from Fudan IMBA, Portugal-China lab brings them not only expansion of global perspective and ability of problem solving by using all kinds of knowledge of MBA, but also strategic thinking habit in the face of real business. Qiu Feng and Si Yifei will head to Canada and Italy respectively, and continue their new challenges during international exchange program.
(Written by 2012 IMBA Qiu Feng)
Fudan MBA Program
