Henk Terol is a Dutch marketing consultant with over 40 years of experience in marketing and development. He has visited China numerous times for projects, including introducing Greek gourmet products to the rapidly developing Chinese retail market. While traveling through China working with distributors, retailers, and other stakeholders, he was asked to become the master of ceremonies for one of his business partners. In this role, he provides a workshop for entrepreneurs with export plans to China, covering topics such as the Chinese consumer, retail landscape, food and beverages industry, and doing business in China. He aims to give entrepreneurs the information and contacts needed to take their first steps towards the Chinese market.

1. FOOD & BUSINESS IN
CHINA
Rotterdam – May 10 2012

2. Today‟s choice shapes the future

3. 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.

4. Content:
 Urbanization
 Why China?
 Consumers
 Retail in China
 Food & Beverages in China
 Business in China
 Questions

5. 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

6. The outlook

7. URBANIZATION
CHINA
Retail & Retail Suppliers With Export Plans To
China

8. China Population developments

9. Urbanisation CHINA

10. Tier cities CHINA

11. Population Developments
CHINA

12. China urbanization in facts
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

13. WHY CHINA?
Retail & Retail Suppliers With Export Plans To
China

14. Why China?
China Facts

15. Why China?
China Facts

16. Why China?
China Facts
CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT

17. Economic Grew CHINA

18. 22 China provinces report
GDP over US$158 billion.

20. Income Developments CHINA
2011

22. 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

23. (1) Calculated using purchase power parity exchange rates.
Source: Citi Investment Research & Analysis report “Global Growth Generators,” February 2011 and Pricewaterhouse Coopers, “UK Economic Outlook,”

24. Dutch export CHINA till 2011

25. Trade facts 2011

26. CONSUMERS
Retail & Retail Suppliers With Export Plans To
China

27. Chinese Consumers

28. Consumer Trends China

29. Young Chinese consumers

30. Important to know
• Trend Sensitive
• Brand Sensitive
• Brand Loyalty
• Western/European – oriented by far (fresh, safety, quality and
luxury)
• FEATURES:
• 15% population is between 15 and 24 years old;
• 260 million critical potential consumers (middle class)
• Major impact by increasing purchasing power
• Important for business strategy

31. RETAIL IN CHINA
Retail & Retail Suppliers With Export Plans To
China

32. China Retail

33. Shopping Shanghai

34. Shopping Shanghai

35. Sheng da Plaza – Pudong

36. Sheng da Plaza – Pudong
GLOBAL RETAILERS
 Retail & Retail Suppliers With Export Plans To China

37. China Retail companies owns mostly
the hole supply chain
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.

38. Global Retail China

39. Global Brands with
Experience Retail China

40. Cooperation's

41. Sheng da Plaza – Pudong
NEDERLANDSE RETAILE
 Retail & Retail Suppliers With Export Plans To China

42. Shopping Beijing

43. Shopping Shanghai

44. Important organizations to know for
food
 CCFA
 Dutch embassy and NSGO‟s
 Dutch consulates (Shanghai,

45. Sheng da Plaza – Pudong
FOOD RETAILERS CHIN
 Retail & Retail Suppliers With Export Plans To China

46. Developments food & beverages retail
China

47. Carrefour
http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR246.htm
http://www.express.be/business/nl/economy/carrefour-succesvol-china-dankzij-lokale-orientatie/83898.htm

49. City Shop

50. City Shop

51. Jenny Lou

52. Sheng da Plaza – Pudong
FOOD &
BEVERAGES

53. ETEN EN DRINKEN IN
Food & Beverages China
CHINA
• Chinese regio's sterk wisselend
qua smaakbeleving
• Ingrediënten en lokale producten
zijn sterk verschillend
• Chinese keuken is verschillend,
pittig, zoutig en zoetig
• Veel gerechten hebben een lokale
• traditie
• Proberen en communiceren
• Veel TV-kook en
bereidingsprogramma‟s

54. Facts & Figures Food
consumption
 17% + per jaar 2004-2011
 Verdubbeld 2006-2011
 525 Euro per jaar per persoon
 Shanghai =Euro 825,-
 Beijing & Guangdong = Euro 700,-
 Waarde van de Yuan steeg 9.5% -
 Verkopen in F&B steeg 2011 18.3%

55. Consumer, Producer and Food
Price inflation

56. What‟s going on?
• Ontwikkeling consumptie China
• Groei en toename van moderne
retailformules
• Groei van 2e en 3e tier steden
• Veranderende leefstijlen
• Kwaliteit belangrijker
• • Betrouwbaarheid van merken is
belangrijk
• Eigen merken ontwikkeling

57. Usefull to know
• Groeiend inkomen heeft invloed op
leefstijl en eetgedrag
• Jonge consumenten op zoek naar
gezonde producten die inspelen op
gemaksbehoefte
• Op zoek naar nieuwe recepten en
toepassingen in hun (nieuwe en
bestaande) kookstijl
• Kritisch, onderzoekend, zoekt naar
klantervaringen, deelt zijn mening
met anderen
• Groeiende beschikbaarheid van vers
en verpakt voedsel via hyper - en
supermarkten van lokale en
internationale retailers

58. Business in
China?
• Characteristics and habits
• First Step
• Corporate culture
•Guanxi (Relationship Development)
Preparations
Information is available!!!!

59. Zakendoen met China, de „‟nieuwe‟‟
wereldspeler

60. Zaken doen in China 
“denk Chinees’’ of werk via Chinezen

61. ‘’guanxi‟‟

62. Zaken doen in China  tegenprestaties of
‘’you scratch my back, I’ll scratch yours’

63. Zaken doen in China  geen
agenda
CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT

64. Zaken doen in China  geduld

65. Zaken doen in China  wie is de
baas?

66. Zaken doen in China  eten

67. Zaken doen in China  drinken

68. CHINA

69. Features & habits

70. Introduction INTRODUCTION
• Usually through a exhibition or a match
meeting.
• Business Cards ritual (Chinese bc to)
• Greetings, titles, topics of conversation.
• Always interested though it may often not
so
• Hierarchy is often seen and felt
• They are complimentary and quite
properly, the first step toward developing
relationship.
• If a follow up to make it clear that.

71. 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.

72. 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.

73. Chinese Relationship Development

74. Relationship development
"Business" and "Private" are of equal significance.
It comes in both cases on respect and trust that the relationship is
balanced.
.

75. Preparations
• Homework China
• Export plan
• Marketing the products
• Registration of the brand (and) category(ies)
• Regulations, Customs, Tax, licenses,
• Free Trade Zones and exemptions
• Communication
• Language
• Packaging
• Website
• Social Media strategy, blogs,
• Free publicity, magazines, news papers, local TV & Radio

76. DEVELOP AN INTERNATIONAL
STRATEGY
Understand consumers
Understand value brand Provide integrated
equity marketing skills
OK GOOD OUTSTANDING
Return on investment Innovation &
creativity
COOPERATION/Collaboratio
n
WHERE ARE WE NOW? vs WHERE WE WILL BE IN 6 MONTH?

77. China market scan

78. Recommendations Conclusions

79. Links and industry contacts

80. Further reading

82. 同义词

83. 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