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.
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
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
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,”
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
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.
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%
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!!!!
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.
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?
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
Notas do Editor
Visitekaartje, tweetalig, inclusief Chinees, vooral je positie in de onderneming is belangrijk, positioneren als de belangrijkste persoon in het gezelschap. Visitekaartje, in het Chinees, met je naam naar zijn ogen gericht, met twee handen overhandigen. Niet wegstoppen, bekijk de informatie met gemeende interesse en mogelijk haal je er informatie uit die van pas kan komen in het gesprek. Leg het kaartje naast je neer. Vergeet het niet. Bij de eerste ontmoeting is het belangrijk dat duidelijk wordt dat er respect is. Dat kan je doen door een bescheiden buiging naar je gastheer te maken.