ChinaMarketResearchFinalReportOctober27,1999PICANOLPICANOLBackgroundandapproachResearchpurposeMarketresearchapproachExplanationaboutthesampleSample&informationsourcesGeneralassumptionsTheverificationprocessPage3BackgroundandapproachBackgroundBackgroundPicanol,aleadingtextileweavingmachinemanufactureranditswhollyownedPicanol(Suzhou)TextileMachineryCo.wanttohaveabetterunderstandingoftheChinesemarketforweavingmachines,andinparticularthemarketsizeandtypesofweavingmachines.Picanol’sobjectiveistousethemarketstudyfindingstore-examandupdateitsoverallChinabusinessstrategies.ThefollowingreportisbasedonthemarketinformationandanalysisfromtheextensivesecondaryandprimarymarketresearchactivitiescarriedoutbyPricewaterhouseCoopersShanghaioveraperiodofalmostfourmonths.Page4IntroductionOurmarketresearchmethodscomprisedsecondaryresearchofcollectingmarketandindustryinformationfromindustryassociations,publiclibraries,internetandover140primaryresearchinterviewswithweavingcompanies,weavingmachinemanufacturers,governmentdepartmentsandindustryassociations.85%oftheinterviewswere“facetoface”interviews.Amongthe100weavingcompaniesweinterviewed,65ofthemwererecommendedbyPicanolofficesandPSTinChina.Wetargetedthetopexecutivesattheweavingcompanieswheneverheorshecouldorwerewillingtoprovidetherequiredinformation.Undercertaincircumstances,weinterviewedthemostknowledgeablepersonsmadeavailabletousbythetopexecutives.Basedontheinformationcollectedandourownin-depthmarketanalysis,wereachedthesomeconclusionsandderivedthemarketestimates.BackgroundandapproachPage5Withtimeandbudgetconstraints,wecouldonlyconductalimitednumberoffieldinterviewsintheselectedtargetcities/provincesinthecountry.Priortothefieldinterviews,wehelddiscussionswithpeoplefromPicanolandPSTinordertodeterminethekeyprovincesweshouldtargetandhowweneedtodividethesamplebylocationandcompanytype,etc.PicanolandPSTofficesalsorecommendedandprovideduswithcompanylistsfortheinterviews.AfterthepreliminarypresentationofthefindingsandthroughconsultationwithPicanolandPST,wedecidedtoincreasethesamplesizeby20morecompaniesselectedbyPSTandPicanolofficesaccordingtotheoffices’viewonthecompany’simportance.Theobjectiveistoimprovetherepresentationofthesample.Takingintoconsiderationofthesmallsamplesize,wemadesomenecessaryadjustmentintheprocessofproducingmarketestimates.Thefollowingpageshowsthedistributionofthesamplebylocationandtype.BackgroundandapproachPage6CompanyCompanyLoomsLoomsSampleSampleTotal***Total***10018,00018,00066,2971,200,0001,200,0000.56%0.56%5.52%5.52%*Including6PSTand31Picanolcustomers**Morethan140interviewsifincludingtheverificationinterviews.SOE53%Collective23%Foreign13%Private11%LiaoningShandongJiangsuHenanShanxiHubeiZhejiangGuangdongWeavingCompanies622237562010Percentageof100interviewees6%22%23%7%5%6%20%10%Subtotal*100100%Association9Competitor4Government7Total**120Fujian11%Backgroundandapproach***FromUnitrustPage7•China’seconomywillcontinueitscurrentpaceofdevelopmentwithoutmajorsocialandpoliticalinstabilitiesoverthenext3years.•Thesampleofcompanies/peoplewechoseforthisresearchcanreasonablyrepresentthemarket.•Theinformationprovidedfromthesemiofficial3rdpartyisreliable.•Thetargetedintervieweesarewellinformed,experiencedandknowledgeableaboutthemarketandindustry.•Thetargetedintervieweesunderstoodwhatwewereaskingandprovidedinformation,dat...