Porsche Consulting GmbH, a subsidiary of Porsche AG, opened a branch in Shanghai on Thursday, in a bid to tap into China's consultancy market.

New challenges, including rising costs, growing difficulties to attract and retain qualified talent, and the ever-changing consumer market, are making it harder for companies to stay profitable, the company said.

Porsche Consulting Ltd in Shanghai with its initial eight-member group will focus on helping companies adapt their business processes to the high growth rates. At the same time, productivity, as well as the quality of products and deliveries must be continuously improved, it added.

"Our consultancy services are geared towards the needs of both Chinese, as well as foreign companies that have established a presence in Asia," said Eberhard Weiblen, president and CEO of Porsche Consulting GmbH.

"In China, it is comparatively more difficult for manufacturers to find efficient suppliers than it is in the West. They must often go through a development process before they are able to reliably meet the required quality levels, timeliness of delivery and technological standards", said Heiko Rauscher, CEO of the Chinese subsidiary of Porsche Consulting Ltd.

Another three consultants will join Porsche Consulting's China group later this year. They will advise global groups and SMEs from industries ranging from the automotive and supplier industry to mechanical engineering and aerospace, among others.

The Porsche consulting subsidiary emerged in 1994, and after nearly two decades of development, the company grew its workforce from 4 to about 350. It has subsidiaries in Milan, Sao Paulo, Atlanta and Shanghai.

wang_ying@chinadaily.com.cn