Henk Terol is a Dutch marketing consultant with over 40 years of experience in marketing and development. He has traveled to China numerous times, including for a project introducing Greek gourmet products to the rapidly developing Chinese retail market. During his travels through China, he worked extensively with distributors, retailers, and other stakeholders. Today, Henk led a workshop in China for entrepreneurs with export plans to China, covering topics like the changing Chinese market, urbanization, consumers, retail, regulations, and preparations for entering the Chinese market.
2. 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 WITH
DISTRIBUTORS, RETAILERS AND OTHER STAKEHOLDERS. AND SOON HE
WAS ASKED TO BECOME MASTER OF CEREMONIES OF ONE OF HIS
BUSINESS PARTNERS. TODAY HENK IS YOUR MASTER OF CEREMONIES.
3. 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
4. 20 YEARS FROM NOW CHINA'S WILL BE
THE LARGEST ECONOMY IN THE WORLD.
ESPECIALLY
WHEN CHINA IS LESS EXPORT DEPENDENT
AS DOMESTIC CONSUMPTION GROWS
20. 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 China's 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 ..
21. 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
25. Retail
http://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 world's largest operator of container terminals and the world's largest health and
beauty retailer.
29. Why China?
China Facts
CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
30. 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 Foshan
Jingjin 16.6 M 31.1 M (2035)
Beijing & Tianjin Current Beijing 16.8 M
Current Tianjin 10.8 M
Yangtze River Delta “City” 14.8 M 21.6 M (2031)
Chongqing 6.2 M 11.2 M (2027) Current 32 M
Chengdu 3.9 M 11.1 M (2035) Current 10.4 M
Zhengzhou 6.7 M 10.1 M (2039) Current 7.2 M
Xi „an 4.6 M 10.0 M (2035
Changzhutan 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
35. 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
42. 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
51. 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.
78. Regulations and good to know
Agentschapnl.nl
Fenedex
NCH
Export associations
Ministerie van Buitenlandse Zaken
Ministerie van Economie, Innovatie en Landbouw
79. Export to China
• Characteristics and habits
• First Step
• Corporate culture
•Guanxi (Relationship Development)
Preparations
AND a lot of information is available!!!!
80. CHINA Workshop for entrepreneurs
with export plans to China
83. 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 and
concentrates 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 of
each 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 friendship
and mutual understanding.
84. CORPORATE CULTURE:
DISCOVERY AND RELATIONSHIP
Avoid confrontations.
It is better to lie than someone suffering loss of face, especially when it comes to someone
you later might need.
All Chinese relations are based on a network, but these networks are business far
outweigh 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 suffered
loss of sight is disturbed, but also with those who were present.
Face you can get and give, but should not lose and lose.
87. Relationship development
"Business" and "Private" are of equal significance.
It comes in both cases on respect and trust that the relationship is balanced.
.
90. DEVELOP AN INTERNATIONAL STRATEGY
Understand consumers
Understand value brand equity Provide integrated
marketing skills
OK GOOD OUTSTANDING
Return on investment Innovation & creativity
COOPERATION/Collaboration
WHERE ARE WE NOW? vs WHERE WE WILL BE IN 6 MONTH?
96. CHINA
Workshop for entrepreneurs with
export plans to China
Thanks for your attention and I
wish that you can now make a
step forwards to reach your aims
HENK TEROL
Mobile: +31(0) 654 977 703
CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT