The recent business integration of YCP Group and Shenkuo, and the subsequent formation of YCP Shenkuo, signifies a critical step forward for both firms. This integration, characterized by strengthened cross-border collaboration across industries and international markets, brings a wave of enhanced capabilities and service offerings. This is particularly good news for our clients operating in Europe’s dynamic business landscape, as they can expect a more robust support system.
YCP Shenkuo Partner Laurent Fihey provides a nuanced perspective as one of Shenkuo’s co-founders, sharing further insight into the integration, how it is expected to bolster firm capabilities in Europe, and what to expect as YCP Shenkuo enters a new chapter with an expanded global presence across Asia, Europe, and beyond.
For more context, could you highlight some key foundational ideas or concepts relevant to Shenkuo’s journey thus far? How will these translate to our integration as YCP Shenkuo?
When we founded Shenkuo, we kept several DNA pillars in mind that continue to ground our business decisions to this day:
- Global perspective: Our co-founders all come from international backgrounds. Thomas Pernin grew up with an expatriate childhood and pursued his master's degree in Hong Kong, while I spent 5 years working in China. Instead of setting up a traditional consulting firm, we chose to leverage our global experience and set up Shenkuo. After a year of operations, we were able to deliver projects to over 10 markets across the globe.
- Cross-functionality: We believe that consulting is all about expertise. Since our inception, we’ve focused on strengthening our services in several key industries: Consumer & Retail, Automotive & Aerospace, Supply Chain & Logistics, … while maximizing our joint experience and knowledge of each market. Our cross-functional approach ensures that we can provide comprehensive solutions that address the multifaceted nature of our clients' challenges to deliver value that goes beyond conventional consulting.
- Flexibility: We take pride in the fact that our clients recognize us as very accessible people who are easy and enjoyable to work with. Our flexibility is not just about being available but also about adapting to our clients' unique needs and contexts.
When starting M&A discussions with YCP, we easily understood that these pillars would find some positive echo at the firm. YCP shares our commitment to a global perspective, cross-functional expertise, and client-focused flexibility. This alignment of core values ensures that our integration as YCP Shenkuo will be seamless and synergistic.
Can you share some insights into how this integration came about? What are the key considerations that made this partnership particularly compelling for both firms?
When we recognized that YCP would be a good fit that aligned with our DNA pillars, the synergies between YCP and Shenkuo were immediately clear and compelling. The areas in which our firms intersect are very organic, making the possibilities endless for how YCP Shenkuo can potentially unlock previously unrealized value through this partnership. These synergies include:
Service lines – Shenkuo brings strong logistical capabilities to the fore, bolstering YCP’s current service offerings within that industry, specifically YCP’s supply chain division (YCP Consus) and its digital transformation division (DXD). Both firms, now YCP Shenkuo, complement each other well in key business areas relevant to the global market, such as Strategy and Business Transformation.
Industry coverage – The combined strength of both firms as YCP Shenkuo, especially in terms of industry expertise and coverage is undoubtedly another factor of why this integration came about. Both Shenkuo and YCP possess their respective strengths in terms of their professionals and the industries they specialize in, which will ultimately translate to accelerating firm growth together across key verticals, such as Consumer Goods and Automotive & Aerospace.
Geographic position – Given that YCP’s network in Asia is particularly strong, especially in Japan, Greater China, and Southeast Asia, such presence would naturally bolster YCP Shenkuo’s presence. Likewise, Shenkuo’s experience in European markets and Greater China will prove invaluable to the Group’s overall mission of fully capitalizing on cross-border opportunities as YCP Shenkuo, activating both inbound and outbound flows and connecting further with global clients.
How do you see the integration enhancing the local capabilities of both firms?
First, from the perspective of YCP strengthening its network in Europe by building on what Shenkuo has already accomplished:
YCP strengthens its foothold in Europe through this integration, with an additional office in Paris. We plan to operate as a unified team across Europe, collaboratively driving business development efforts. Through these efforts, it is our goal to bolster YCP’s position as a global brand and encourage European clients to work with us for their business needs in Asia. With this strengthened foothold, we are committed to fostering long-term partnerships and driving sustainable growth for our clients.
Additionally, from the perspective of Shenkuo expanding further into Asia through YCP’s expansive presence within the region.
Being part of YCP is a unique opportunity for us to better serve our clients in their business needs in Asia and beyond. With the integration, we can now offer our clients a broader range of services and insights, supported by YCP’s local expertise and strong relationships within the region. This collaboration will enable us to tap into new opportunities, enhance our service offerings, and deliver more comprehensive and strategic solutions for our clients.
In the past few weeks, I’ve engaged in promising discussions with clients on the different market opportunities in Japan, Singapore, and India. These fruitful discussions would not have been possible without the integration into YCP.
How will YCP Shenkuo's expertise in EU markets be leveraged to help clients involved in emerging Asian sectors (renewable energy, logistics, retail, etc.)?
Although Asia is widely recognized as a leader and innovative pioneer in trending topics like data, smart technology, and e-commerce, Europe has unique 100+ years of experience across several industries. The Shenkuo team has had the unique opportunity to fully immerse ourselves as professionals and gain first-hand knowledge from Europe’s historically rich business landscape.
We are firm believers in connecting people, sharing knowledge, and putting into action the best practices–a dynamic that we have fully embraced and implemented at Shenkuo for many years. We believe that consulting is about helping clients fully realize their potential and open their chakras. This is something that we hope to do for Asian players wanting to enter Europe’s markets, where the integration of Shenkuo into YCP and our operation as YCP Shenkuo will be the catalyst.
How can YCP's established relationships and deep understanding of Asian markets be utilized to create synergies and drive growth for clients operating in both Greater China and EU industries?
Relationships between Greater China and Europe have cooled down, and as a result, many international businesses are facing a great deal of pressure in Mainland China.
Being a consulting firm deeply rooted in Asia, particularly in Greater China, is without any doubt, a key strength that YCP can leverage to transcend borders across Europe and Greater China. YCP’s strategic position and deep understanding of the market presents a unique value proposition to help businesses successfully navigate the situation and find the best windows to operate.
By leveraging our established relationships and comprehensive market insights, YCP can create significant synergies for clients operating in both regions. Our deep-rooted presence in Greater China allows us to provide nuanced and informed advice, helping European businesses mitigate risks and capitalize on opportunities. Similarly, our extensive network and expertise enable us to assist Chinese clients in expanding their footprint in Europe.