MES outsourcing holds the key to future growth

As an old Chinese saying goes, "good wine needs no bush." For centuries, Chinese businessmen firmly believed that as long as they could provide a good product, their business would sell itself. Times have changed though since this phrase was coined and this philosophy is becoming increasingly out of step with modern concepts of management and marketing.

Today, as the country's economic growth engine stalls, more and more Chinese entrepreneurs are now waking up to the fact that there is more to success than offering a quality product. Knowing how and where to sell one's products has become an increasingly pressing problem for businesses feeling the slowdown chill.

Recognizing their market incompetence, many entrepreneurs are turning to think tanks, consulting firms and strategy companies to help them create effective marketing strategies. In this process, many business owners are now gradually becoming exposed to a new kind of strategic service - that is, market expansion service (MES) outsourcing. In my opinion it is time for more homegrown companies to start utilizing such services in order to stand out in competitive domestic and international markets.

Establishing core competencies and farming out everything else to outside experts is at the core of modern management concepts. In the West, this desire to concentrate on one part of the value chain gave rise to the outsourcing industry as large firms handed off back-end services - such as accounting and customer support - to other, more efficient firms. While the Chinese business community realizes the value of outsourcing, the global markets are witnessing the emergence of MES outsourcing, which helps companies grow in new and existing markets by offering marketing, sales, distribution and customer care support.

Unlike traditional outsourcing services which cut clients' costs, MES providers can actually help companies increase their revenue by giving them the tools they need to enter new markets and expand in markets where they have a presence.

Such services have already become commonplace among multinational companies in the West, especially when they plan to enter a new market, and the industry is expanding fast worldwide as well.

According to a report released by DKSH, an MES provider in Asia, the market value of the global MES industry is expected to hit $3 trillion in 2015, up from $2.2 trillion in 2010.

As China's economy decelerates thanks to changes in the global and domestic markets, local businesses must respond by shaking up their traditional strategies. In order to stay competitive, firms need to realize they can't do everything by themselves and be willing to seek out expert help when the need arises.