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WORKSHOP CHINA FOR
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.
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 CHINA'S WILL BE
THE LARGEST ECONOMY IN THE WORLD.

ESPECIALLY

WHEN CHINA IS LESS EXPORT DEPENDENT

AS DOMESTIC CONSUMPTION GROWS
China Population developments
The outlook
CHANGING CHINA
Changing China




CHITRACON   CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Changing China




CHITRACON   CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Changing China




CHITRACON   CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Changing China




CHITRACON   CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Changing China
Changing China   Alternative energy sources
Changing China                        Alternative energy sources




http://ap.suntech-power.com/zh/products/utility-scale.html
Changing China                       Alternative energy sources




Wind power plants in Xinjiang, China   Three Gorges Dam site, Sandouping, Hubei province, China
URBANIZATION CHINA


F&B Entrepreneurs With Export Plans To China
Urbanisation CHINA
Tier cities CHINA
Population Developments CHINA
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 ..
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
Wine




http://www.nieuwsblad.be/article/detail.aspx?articleid=GOP35QJ6N&subsection=206
Bank
Cars
          Geely owns Volvo since Aug. 2010
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.
WHY CHINA?


F&B Entrepreneurs With Export Plans To China
Why China?
China Facts
Why China?
China Facts
Why China?
   China Facts




CHITRACON   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 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
Trade facts Globaly
Trade facts
Economic Grew CHINA
Income Developments CHINA
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
Dutch export CHINA
CONSUMERS
Chinese Consumers
Consumer Trends China
Young Chinese consumers
Comparison of young consumers in Asia
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
RETAIL IN CHINA
China Retail
Shopping Shanghai
Sheng da Plaza – Pudong
Shopping Beijing
Shopping Shanghai
European Retail China
Cooperation's
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.
INTERNET & IMPORTANCE
SOCIAL MEDIA
Internet
Internet use
Importance sources
Importance as trustful source
Internet sources Important for DM
Sources for trustful preparations
Importancy communication with blogs
Chinese social media
Online shopping
Frequency Online shopping
Reasons Online Shopping
MARKETING &
DISTRIBUTION
FOOD & BEVERAGES
Who’s are the distribution channels build up?
Developments food & beverages retail China




   http://www.researchinchina.com/FreeReport/PdfFile/634000115899375000.pdf
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
City Shop
City Shop
IMPORTERS & AGENTS
Importers & Agents
Sims
Arla & Sims
Platform for Product Know-how and Market Insights
REGULATIONS &
CUSTOMS
Regulations and good to know
   Agentschapnl.nl
   Fenedex
   NCH
   Export associations
   Ministerie van Buitenlandse Zaken
   Ministerie van Economie, Innovatie en Landbouw
Export to China

                    • Characteristics and habits
                            • First Step
                       • Corporate culture
                •Guanxi (Relationship Development)
                           Preparations


AND a lot of information is available!!!!
CHINA   Workshop for entrepreneurs
        with export plans to China
Features & habits
Introduction   INTRODUCTION
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.
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.
Chinese Relationship Development
Relationship development
            "Business" and "Private" are of equal significance.
It comes in both cases on respect and trust that the relationship is balanced.
                                     .
PREPARATIONS
Preparations
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?
China market scan
Recommendations   Conclusions
Further reading
同义词
FROM HANS ROSLING
          WHO WAS KEY
          SPEAKER
          ON TEDEX

China and India ?
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

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Workshop china Retail Compass mei 2011

  • 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
  • 8. Changing China CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
  • 9. Changing China CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
  • 10. Changing China CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
  • 11. Changing China CHITRACON CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
  • 13. Changing China Alternative energy sources
  • 14. Changing China Alternative energy sources http://ap.suntech-power.com/zh/products/utility-scale.html
  • 15. Changing China Alternative energy sources Wind power plants in Xinjiang, China Three Gorges Dam site, Sandouping, Hubei province, China
  • 16. URBANIZATION CHINA F&B Entrepreneurs With Export Plans To China
  • 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
  • 23. Bank
  • 24. Cars  Geely owns Volvo since Aug. 2010
  • 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.
  • 26. WHY CHINA? F&B Entrepreneurs With Export Plans To China
  • 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
  • 41. Comparison of young consumers in Asia
  • 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
  • 46. Sheng da Plaza – Pudong
  • 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.
  • 58. Sources for trustful preparations
  • 65. Who’s are the distribution channels build up?
  • 66.
  • 67.
  • 68. Developments food & beverages retail China http://www.researchinchina.com/FreeReport/PdfFile/634000115899375000.pdf
  • 70.
  • 75. Sims
  • 76. Arla & Sims Platform for Product Know-how and Market Insights
  • 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
  • 82. Introduction INTRODUCTION
  • 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.
  • 86.
  • 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?
  • 92. Recommendations Conclusions
  • 95. FROM HANS ROSLING WHO WAS KEY SPEAKER ON TEDEX China and India ?
  • 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