Retail in China is a tough business but their are opportunities and challenges. In our perspective their are challenges for city brand in food and drinks for young and curious new consumers with interest in functional nutrition and added values as loyalty programs.
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
Opportunities
Questions
Internet & Social Media
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. 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
21. 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
28. 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
34. Sheng da Plaza – Pudong
GLOBAL RETAILERS
Retail & Retail Suppliers With Export Plans To China
35. 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.
39. 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.
40. Sheng da Plaza – Pudong
NEDERLANDSE RETAILERS
Retail & Retail Suppliers With Export Plans To China
58. Business in China
• Characteristics and habits
• First Step
• Corporate culture
•Guanxi (Relationship Development)
Preparations
Information is available!!!!
60. Relationship development
"Business" and "Private" are of equal significance.
It comes in both cases on respect and trust that the relationship is balanced.
.
64. 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