DUTCHMAN HENK TEROL IS THE OWNER OF MARKETING AND COMMUNICATION CONSULTANCY ADMARCOM. WITH OVER FORTY YEARS OF EXPERIENCE IN MARKETING AND DEVELOPMENT, HENK VISITED CHINA NUMEROUS TIMES. ONE OF HIS PROJECTS WAS THE INTRODUCTION OF GREEK GOURMET PRODUCTS IN THE RAPIDLY MATURING CHINESE RETAIL MARKET.WHILE TRAVELING THROUGH CHINA, HE WORKED EXTENSIVELY WITHDISTRIBUTORS, RETAILERS AND OTHER STAKEHOLDERS. AND SOON HEWAS ASKED TO BECOME MASTER OF CEREMONIES OF ONE OF HISBUSINESS PARTNERS. TODAY HENK IS YOUR MASTER OF CEREMONIES.
Content: Changing China Marketing & Urbanization Distribution Investment in Europe Importers & Agents Why China? Regulations & Customs Consumers Habits & Characteristics Retail in China Preparations Internet & Social Media Questions
20 YEARS FROM NOW CHINAS WILL BETHE LARGEST ECONOMY IN THE WORLD.ESPECIALLYWHEN CHINA IS LESS EXPORT DEPENDENTAS DOMESTIC CONSUMPTION GROWS
Postcard Tianjin • City still somewhat traditional setting, although the picture suggests otherwise. CHINA•Many cars, but still lot bikes and traditional transport. INVESTMENTS IN •Developing rapidly. •Is seen as Chinas new business center. EUROPE •Recovery Beijing as a cultural center has a direct impact on infrastructure Tianjin. •In 35 minutes by HS train from Beijing to Tianjin ..
Harbour Piraeus Since 2009 owns Cosco, stated owned company, 75% of this harbour Interest in East part Mediterranean area Contract 35 years Focus on harbours for export activities in Europe (Rotterdam) Chinese companies owns preferable the whole business chain
Retailhttp://www.hutchison-whampoa.com/eng/index.htm Sir Ka-shing Li, is a wealthy businessman from Hong Kong. He is the richest person of East Asian descent in the world and the sixteenth richest man in the world with an estimated wealth of US$16.2 billion on 13 February 2009. Presently, he is the Chairman of Hutchison Whampoa Limited (HWL) and Cheung Kong Holdings; through them, he is the worlds largest operator of container terminals and the worlds largest health and beauty retailer.
WHY CHINA?F&B Entrepreneurs With Export Plans To China
Why China? China FactsCHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Why China? City developments : source Champs, fastest growing cities Population in 2000 Peak population (year)Pearl River Delta “City” 16.6 m 31.2 M (2034)Guangzhou, Shenzhen, Dongguan and FoshanJingjin 16.6 M 31.1 M (2035)Beijing & Tianjin Current Beijing 16.8 M Current Tianjin 10.8 MYangtze River Delta “City” 14.8 M 21.6 M (2031)Chongqing 6.2 M 11.2 M (2027) Current 32 MChengdu 3.9 M 11.1 M (2035) Current 10.4 MZhengzhou 6.7 M 10.1 M (2039) Current 7.2 MXi „an 4.6 M 10.0 M (2035Changzhutan cluster 3.7 M 9.7 M (2034)Nanjing 3.5 M 7.2 M (2035) Current 7.7 M http://www.eiu.com/subscriber_promos.aspx
Changes and challenges ahead Politics: party bureaucracy and the challenges ahead of a fast-changing society Economy: Government control and entrepreneurial spirit China and the world: Nationalism and Foreign business Infrastructure: hard and soft (still bad areas) Demography: education and workforce Management: The international manager Production: The law, supply china and quality Growing middle classes and life style products China & EU
Important to know• Trend Sensitive• Brand Sensitive• Brand Loyalty• Western-oriented FEATURES:• 15% population is between 15 and 24 years old;• 260 million critical potential consumers c• Major impact by increasing purchasing power• Important for business strategy
Luxury brands in China The Digital IQ of Prestige Brands in China The massive potential for retail businesses in China is no surprise to anyone—least of all prestige brands. After years of annual double-digit growth, China‟s booming economy has left tens of millions of consumers seeking new ways to spend their disposable income. In 2009, China became the world‟s second largest luxury market behind Japan, surpassing the United States. Even though these trends were recognizable at least 20 years ago, many prestige brands are still playing catch-up in this diverse and rapidly changing marketplace. With 384 million internet users—more than the U.S. and Japan combined—much of the competition for customers and brand loyalty will play out online. The investment prestige brands make in their own digital competence could be a deciding factor in their ability to survive and thrive in China, and is likely to become increasingly important as the market matures.
CORPORATE CULTURE: DISCOVERY AND RELATIONSHIP• The mentality and the language, in different regions in China show large differences.• It is important that you, if you want to do business, select before a (your )region andconcentrates on it.• Negotiate and liaise with Chinese require patience and tact.• Chinese are reliable, but hard and tough negotiators skilled in the opposite playing off ofeach other competitors.• Treat them as equals and try a build up good personal relationship with you personally.• Presents your business card (written in English and Chinese) with both hands.• The first meeting the aim of your Chinese partner is mainly focused on the close friendshipand mutual understanding.
CORPORATE CULTURE: DISCOVERY AND RELATIONSHIP Avoid confrontations. It is better to lie than someone suffering loss of face, especially when it comes to someoneyou later might need. All Chinese relations are based on a network, but these networks are business faroutweigh the networks that we know in the West.Respect and respect are very important to your Chinese partner, but also for yourself. By someone in public to lose leave that person lose face. Nothing is worse than that! Not only the relationship with the person who has sufferedloss of sight is disturbed, but also with those who were present. Face you can get and give, but should not lose and lose.
DEVELOP AN INTERNATIONAL STRATEGY Understand consumersUnderstand value brand equity Provide integrated marketing skills OK GOOD OUTSTANDING Return on investment Innovation & creativity COOPERATION/CollaborationWHERE ARE WE NOW? vs WHERE WE WILL BE IN 6 MONTH?
FROM HANS ROSLING WHO WAS KEY SPEAKER ON TEDEXChina and India ?
CHINA Workshop for entrepreneurs with export plans to China Thanks for your attention and I wish that you can now make astep forwards to reach your aims HENK TEROL Mobile: +31(0) 654 977 703 CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT