2016: the Five Major Chinese Forecast Development Trends of the Legal Services Market--Part One
Compass predict, In 2016, the legal services market is much likely to be shaped by the following five characteristics:
Ⅰ. The expansion of the global legal services market will be continued
The big law firms will continue to build their global platform, therefore the global legal market will become very competitive, even be overcrowding in some segments. The most successful global law firms will be those which serve a global expansion needs of customers and expand business diversity as the target of the law firm.
On the other hand, consider that the huge cost of investing the new office in the global scope. Compass predict that some office will be closed as in the past two years, the firm will quit from the specific market.
As for Chinese law firms, they are also trying to push the globalization of the platform, in order to serve the export investment business of Chinese companies.
Taking into account that many Chinese law firms and Western law firms merge a lot recently, Compass expect more Chinese law firms think over the question about the internationalization and make a choice.
Ⅱ. Changing supply and demand balanc
We are in a buyer's market: the number of legal service provider that customers can find has a significant growth.
Trying to seek growth by regional expansion, law firms enter to new markets, and compete with the original law firms in the market. Alternative legal services are emerging, with the use of technology and low cost personnel allocation model, which can provide lower prices for customers to deal with the daily affairs of low technical content. At the same time, increasingly accounting firms are competing with traditional firms.
The legal department will be looking for the highest cost-effective service provider. Although this is not a new concept, now the relationship between supply and demand is indeed to make them more advantage. It helps them better achieve a specific cost to get a greater value target.
More transactions will be delivered by a low cost service provider. Although these services are only focused on the daily work, Compass believe that low-cost service providers will soon find ways to expand the their business. In addition, in order to control costs, there will be more work directly completed by the company's internal staff.
Of course, the development of technology will also permit some service providers to complete the work at a lower cost. Although the overall progress of the technology will be a threat to law firms business, it also provides a chance to improve their work efficiency.
All of them brought pressure to the law firms profit. Customer demand for more efficient legal services. It will prompt an increasing number of law firms to begin reflecting on the provision of legal services.
For the control of the budget, the law firms will begin to pay more attention to operating costs, and apply project management methods to control costs and maintain marginal profits. The law firm will also attach importance to the value increment of hiring lawyers. And also be more in-depth understanding of legal affairs, the profitability of actual customers and clients.
However, although clients want to find a more cost-effective service, they will still be willing to pay higher price for the services that they believe to have a high value. For a law firm, the higher services value they provide, the more demand they will have and their income growth opportunity is greater.
-----by Chinese lawyers network
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