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China Law Firm Indepth Research and Investment Strategy Report, 2013-2017

China Law Firm Indepth Research and Investment Strategy Report, 2013-2017

Last Update:2014-06-09

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Preface

Table of Content

As the global economic development trend is complicated and confusing, China law firm is facing unprecedented opportunity as well as challenge which are caused by the change of external and internal environment. Law service market gradually opens up. With the entry of foreign capital, technology and service, law service industry faces a serious challenge of “internationalization for domestic market and localization for international competition”. In the meantime, nature and positioning of China lawyer industry is changing with the era’s need of politics, economy and culture. Under such condition, innovation plays a decisive role in the sustainable and scientific development of law firm.

According to statistics, since the recovery of lawyer industry in 1979, the industry scale keeps a rapid growth. Number of lawyers in China grows from 212 in 1979 to 156,700 in 2008 and nearly 200,000 in 2012 with 17,200 law firms. However, among the 17,200 law firms there is only 2 with a scale of over 1,000 employees, 28 with a scale of more than 100 employees, 149 with a scale of 50 to 100 employees and 471 with a scale of 30 to 50 employees. All together, there are 650 law firms mention above. Estimated by Ministry of Justice, proportion of law firms which only with less than 10 employees is over 50%. By 2011 there are about 19,000 law firms with more than 200,000 employees in China, and most of them are located in economically developed areas: there are 1,415 law firms with 22,418 employees in Beijing; 1,078 law firms with 12,562 employees in Shanghai while Guangzhou and Shenzhen rank the third and fourth.

View from the development condition in 2005, among the number of 6 major business in law firm--criminal, civil, administrative, and ADR (Alternative Dispute Resolution), consultant and consultation--the criminal suit business increases rapidly which is relevant with current years’ politic and social environment; civil and administrative suit business grows stably and the civil suit business is the major case source for most law firms in China; what is strange is that the growth rate of consultation and ADR business is extremely low till 2008 it reaches the peak for ADR business.

The consultant business should be regarded as bed-stone for its growth is the most stable one. For the radical law firms the ADR which with a fast growth rate could be the key exploiting business; and for the steady law firms the civil suit business which with a stable growth rate is better. And demand of the criminal suit business is greatly fluctuated. Moreover, the winner-take-all effect is obvious in this field. Therefore it is not suitable for medium and small size law firms. In this way, gap between China law firm and foreign law firm will increase because of the profit of ADR is far higher than that of lawsuit business and most businesses of international well-known law firms are ADR.

Despite the enlarging scale, the growth rate of China law firms’ and lawyers’ amount is not obvious. Such growth rate decreased to 2% in 2004 and less than 1% in 2006 which meet the bottom for ten years. Gap between law firm field and other knowledge-intensive commercial service industries is huge. According to analysis fluctuation and bottlenecks of China law firms are mainly caused by preferring lawsuit business, formalizing corporation organization, low leading capability and limited innovation content which only apply in business, etc. Consequently, for a better development the law firms should pay attention to scientific HR management, co-construction of software and hardware, reasonable allotment of law firm resource, and clear notice of structure difference between law firm and traditional corporations.

This report is based on the long-term tracking and collecting data for law firm market and mainly analyzes the following aspects: market environment of law firm; operation condition of law firm; establishment progress and feasibility of law firm; key business segmentation of law firm; competitiveness in key regions for law firm industry; leading corporations’ operation status of law firm. Meanwhile, together with the comprehensive and detailed market data which is accumulated for 5 years, Forward helps you to grasp the market and development trends of law firm market, so as to win advantages from competition!

Major characteristics of this report are forward-looking and timeliness. Base on the forward-looking analysis of massive research data, we further analyze the development scale and competitive landscape of law firm. Along with the industry development route and our practical experience, we analyze and predict the future development prospect of law firm. This report contains a high value for law firm and related investment corporations to accurately know the latest industry development trend, obtain market opportunities and determine an insightful operation strategy and development direction. In the meantime, it is the first heavy weight report to analyze the up/down-stream industry chain and industry leading corporations of law firm in an overall and systemic way.

Here, we’d like to express our sincere gratitude to National Bureau of Statistics of China, International Information Institute, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

 

Qianzhan Business Information Co., Ltd. Industry Research College
Research Team of Law Firm


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