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WORKSHOP
RETAILEN IN CHINA


29 september 2011
Today’s choice shapes the future
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:
              Urbanization
              Why China?
              Consumers
              Retail in China
              Opportunities
              Questions
              Internet & Social Media
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
The outlook
URBANIZATION CHINA


Retail & Retail Suppliers With Export Plans To China
China Population developments
Urbanisation CHINA
Tier cities CHINA
Population Developments CHINA
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
WHY CHINA?


Retail & Retail Suppliers With Export Plans To China
Why China?
China Facts
Why China?
China Facts
Why China?
   China Facts




CHITRACON   CHINESE TRANSLATIONS, INVESTMENT CONSULTING & RECRUITMENT
Trade facts Globally
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


Retail & Retail Suppliers With Export Plans To China
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 (middle class)
•   Major impact by increasing purchasing power
•   Important for business strategy
RETAIL IN CHINA


Retail & Retail Suppliers With Export Plans To China
China Retail
Shopping Shanghai
Shopping Shanghai
Sheng da Plaza – Pudong
Sheng da Plaza – Pudong



               GLOBAL RETAILERS

          Retail & Retail Suppliers With Export Plans To China
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.
Global Retail China
Global Brands with
Experience 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.
Sheng da Plaza – Pudong



               NEDERLANDSE RETAILERS

          Retail & Retail Suppliers With Export Plans To China
Shopping Beijing
Shopping Shanghai
Sheng da Plaza – Pudong



               FOOD RETAILERS CHINA

          Retail & Retail Suppliers With Export Plans To China
Developments food & beverages retail China
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
Sheng da Plaza – Pudong



                        OPPORTUNITIES

          Retail & Retail Suppliers With Export Plans To China
Concept & Furnish
Concept & Furnish
Experience shopping
Signing
Inspiring
Empty malls and shops
Empty malls and shops
Retail in China after work
Business in China

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


Information is available!!!!
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.
                                     .
Further reading
同义词
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
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

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Workshop Retailen in China Oct. 2011