Tag Archives: Irish Exporters Association

Exports showcase offers ‘rare’ opportunity for Irish products in growing China market

Niall O’Reilly, who organised the Hangzhou leg of the Irish Exporters’ Association trip to China which we reported on last month, says an offer by Wahaha chief Zong Qinghou to attend the company’s annual internal distributor exhibition marks a “very rare China market opportunity not to be missed”.

China’s richest man, with almost €9 billion in personal assets, Zong is trying to diversify his company, the country’s biggest domestic beverage group, by opening 18 self-run shopping malls, 35 franchising malls and a further 300 franchising stores by the end of 2015.

Wahaha has a nationwide distribution network of about 10,000 distributors, over 100,000 wholesaler and three million sales terminals. It employs more than 60,000 people, has 150 subsidiary companies and 60 manufacturing bases scattered throughout China.

At the meeting with the Irish Exporters Association, Zong, invited Irish producers of milk powder, UHT milk, goat milk powder, tea, fruit drink concentrates, sweets, Irish whiskies and spirits, and, curiously, Irish tweed and knitwear products to attend the Wahaha European Premium Commodities Exhibition in Hangzhou from July 25th to July 28th.

While noting the short time to the exhibition, Zong thought the exhibition would be a great opportunity to showcase Irish products to Wahaha’s key distributors.

Exports showcase offers ‘rare’ opportunity for Irish products in growing China market - Zong Qing Hou Chairman Hangzhou Wahaha and Niall O'Reilly Managing Director Accurate Group China Business Advisers

China’s wealthiest man, Zong Qing Hou Chairman Hangzhou Wahaha – China’s most admired company – welcomes Niall O’Reilly Managing Director Accurate Group China Business Advisers to Wahaha’s HQ in Hangzhou

“This is a man whose primary interest in working with foreign companies is to bring into China products which Chinese companies are poor at making. If he likes a product, his nod is as good as a wink to Wahaha’s distribution network,” said O’Reilly, head of the Accurate Group.

China is set to become Ireland’s fourth largest export market in the next decade, and the retail sector offers huge market potential for Irish foodbeverage and clothing companies. Over 300 million people in China now have disposable income to purchase on non-essential goods that was not possible even back in the 1990s, while Chinese government policies aim to double household incomes by 2020.

Sources / Copyright: Clifford Coonan / Irish Times http://www.irishtimes.com/business/economy/exports-showcase-offers-rare-opportunity-in-growing-market-1.1456741

http://www.accuratelimited.com/blog.view.php?id=i84nUxS5ONA=

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Niall O’ReillyAccurate China 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yuhang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: Niall O’ReillyAccurate Ireland 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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Irish Exporters Association trade mission to ‘paradise’ meets China’s richest man

Irish Times, Asia Briefing, 2nd July, 2013

“And so to the prosperous east of China, to the cities of Suzhou and Hangzhou, where the Irish Exporters Association (IEA) organised a trade mission that included a meeting with mainland China’s richest man: Zong Qinghou.

There is a Chinese proverb: “In heaven there is paradise, on earth Suzhou and Hangzhou.”

As well as being pleasant cities, they are important business locations, and they fit right in with the current thinking on how to exploit the China market best. That involves focusing on second-tier cities that have large populations.

Hangzhou has 9.5 million inhabitants, while Suzhou has 12 million, which is why the IEA’s Asia Trade Forum chose them for its business visit.

“This is all about taking a phased approach to Asia, and getting to know Asia better,” said Hugh Kelly, the chairman of the IEA’s Asia Trade Forum.

“We wanted to get people out here and get them over the hump of making the trip. We wanted to try to get people to experience China and better inform them if it’s the market for them.”

The IEA’s director for China, Niall O’Reilly, is a long-time Hangzhou resident and he orchestrated the coup of arranging a meeting with Mr Zong.

He is estimated to have a personal wealth of 82 billion yuan (€10.23 billion) and is the chairman of the privately held Wahaha group, China’s top homegrown beverage firm, producing bottled water, tea and other drinks, which had pre-tax profits of €1.23 billion last year.

A chain-smoking member of China’s annual parliament, the National People’s Congress, Mr Zong is famously frugal, spending just $20 (€15) a day on himself. He is the third-richest man in Asia and 23rd richest in the world.

His knowledge of Ireland was extremely limited, something the delegates were keen to remedy, but he seemed receptive to the possibilities offered by Ireland – the visit was supposed to be 20 minutes’ long but went on for one and a half hours.

Wahaha has about 60 factories in 29 provinces, and it also makes baby formula and children’s clothes.

The Wahaha group has considerable geographical spread in China and Mr Zong said that he can get a new product into two million shops inside of a week.

“Mr Zong was very interested in what Ireland had to offer,” said Mr Kelly.

Zong Qinghou, Chairman of Hangzhou Wahaha

Zong Qinghou, Chairman of Hangzhou Wahaha

During the visit, Mr Zong invited the IEA to attend a Wahaha event in three weeks’ time, which will be an opportunity to pitch products to the 20 shopping malls owned by Wahaha.

Among the companies taking part on the delegation was Áine Handmade Chocolates. Owner and chocolatier Anne Rudden was impressed by the scale of operations at Wahaha.

“I was here on this trip to see if there were opportunities, so I got more than I thought out of it. Meeting with Mr Zong was the best. And choosing Hangzhou seems to have been a good idea,” said Ms Rudden.

Mr Zong also tried Darling Cocktails’ ready-to-serve cocktail.

Mr Kelly said that while companies were happy to go to the US six times a year, companies found the trip to Asia more daunting and had less of a presence as a result.“Everyone is going home with a great impression. There are a lot of layers here and we’ve achieved more than we expected on this trip. You have to come here to see the scale on which they plan,” said Mr Kelly, the chief executive of Associated Marketing.

Unlike other Government trade missions, the IEA trade delegation had the benefit of not having to meet political obligations.

Mr Kelly said the choice of Hangzhou and Suzhou as the main venues for the trip was part of a plan to match Irish companies with their counterparts in smaller cities.

“Many Irish companies are small and medium-sized companies and are very small in China. If you pair off with someone too big you will fade,” said Mr Kelly.

The delegation also visited the Hangzhou Economic Development Authority and was received by the local government.

Source / Copyright: Clifford Coonan / Irish Times http://www.irishtimes.com/business/economy/world/asia-briefing-irish-trade-mission-to-paradise-meets-richest-man-1.1449280 . Accurate Group China Business Blog  http://www.accuratelimited.com/blog.view.php?id=VDJvvLcn5vQ=

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

China Office : Niall O’ReillyAccurate China 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: Niall O’ReillyAccurate Ireland 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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Filed under Accurate China Business Services, China, Hangzhou, Ireland, Irish Exporters Association, Niall in the News, Niall O'Reilly, Suzhou, trade

Irish Exporters Flagship Business Visit to Suzhou and Hangzhou, China, June 23rd to June 28th

Overview

The Asia Trade Forum, an initiative of the Irish Exporters Association established to increase two-way trade with Asia, is delighted to announce a Business Visit in June 2013 to two of China’s most fabled and leading business cities, Suzhou and Hangzhou.

The visit will encompass the two cities of Suzhou and Hangzhou, both on the Yangtze River Delta and 30 minutes from Shanghai. Typically, Business Visits tend to focus on Tier 1 cities such as Beijing, Shanghai and Shenzhen. Both Suzhou and Hangzhou are highly competitive cities, with rapid economic development. In addition, they both offer a consumer market with above average disposable incomes. They are ideal gateways to China for your business.

The visit will take place from 23rd to 29th June in partnership Grant Thornton, William Fry, RBS/Ulster Bank, Enterprise Ireland, Euler Hermes, FcM Travel, and Etihad Airways.

The purpose of the Business Visit is to:

  1. Showcase exporting or partnering opportunities in Yangtze River Delta economic region.
  2. Showcase Chinese companies who wish to trade with Ireland.
  3. Highlight the growing indigenous Irish companies operating in China.
  4. Provide a platform for Irish and Chinese businesses to exchange trading opportunities.
  5. The event will include seminars, roundtable workshops, and 1:1 meetings with perspective customers and partners.

Dates / Schedule:

Sunday 23rd June

A.M.:  – Depart Ireland Etihad Airways

Monday 24th June

A.M.: – Arrive in Shanghai Pudong International Airport / transfer to City of Suzhou by road
P.M.: – Arrive City of Suzhou

[Distance from Shanghai Pudong International Airport to Suzhou is about 120km (similar to driving from Dublin to Enniscorthy)

Tuesday 25th June

All-Day: – Gain real hands-on experience of the Suzhou / China business environment; find out what opportunities are on offer:

Match-making with potential buyers, suppliers, and partners

Wednesday 26th June

A.M. –Gain real hands-on experience of the Suzhou / China business environment, find out what opportunities are on offer:

Match-making with potential buyers, suppliers, partners

P.M. Depart City of Suzhou / Transfer overland to City of Hangzhou

[Distance from Suzhou to Hangzhou is about 166km (similar to driving from Dublin to Belfast)]

Thursday 27th June

All-Day:- Gain real hands-on experience of the Hangzhou / China business environment; find out what opportunities are on offer: Match-making with potential buyers, suppliers, and partners

Friday 28th June

A.M. – Gain real hands-on experience of the Hangzhou / China business environment, find out what opportunities are on offer: Match-making with potential buyers, suppliers, partners

P.M. – Wrap up / Tour of West Lake

Evening – Head to Shanghai Pudong International Airport / Return to Ireland
[Distance from Hangzhou to Shanghai Pudong International Airport is about 200km (similar to driving from Dublin to Tipperary)]

Accurate China Insight - Irish Exporters Association - Asia Trade Forum Flagship Business Visit to Suzhou Hangzhou and Shanghai China June 2013

Business Visit Participation Fees and Details

The participation fee to take part on the mission is €500 plus 21.5% VAT per company.  The following will be included as part of the participation fee:

  • Seminars, business networking events and quality 1:1 match-making meetings (utilising the combined resources of local government and on the ground Irish Exporters Association expertise).
  • Group lunches and evening receptions in both cities.
  • Company profile and business visit brochure.
  • Organisational and logistical support including transfers and transport in China.
  • Negotiated group rates in hotels.

Travel Agency Support

Registration for the business visit opens on Tuesday 14th May, please visit http://www.asiatradeforum.org to register.

Final deadline for registration is Friday 7th June.

Travel Information & Visa

Information on travelling in China and vaccine requirements in available from the Department of Foreign Affairs on http://www.dfa.ie/home/index.aspx?id=402

business visa must be obtained through the Chinese Embassy visa service.

You will be required to include the following:

  • Passport valid for at least 6 months with 2 blank pages facing each other
  • 1 passport photo
  • Company Letter- stating 12 mth multiple visa
  • Invitation letter (to be arranged by ATF)
  • Application form and additional business form (attached).

Processing time is 10 working days. There is a same day service available for Irish passport holders for an additional €125. The IEA Consular Service can assist with visa applications.

What makes the Asia Trade Forum Business Visit to China Different?

  • Irish Exporters Association / Asia Trade Forum, having hosted many high-level delegations from these two cities over the years, have excellent relationships with local governments in Suzhou and Hangzhou
  • China isn’t a single market: 5 megacities with populations of over 10,000,000; 14 cities with populations of over 5,000,000 (including Suzhou and Hangzhou), and 41 cities with populations of over 2,000,000. The Yangtze River Delta economic powerhouse is a market place of 88,000,000 people
  •  The Irish Exporters Association / Asia Trade Forum is in a unique position to work with practical and enthusiastic local governments, Irish business associations and Irish businessmen and businesswomen working on the ground in China to deliver a constructive Business Visit focused on quality match-making and business lead generation
  • The Irish Exporters Association / Asia Trade Forum are very conscious of the cost constraints holding many Irish companies back from engaging with China. This will be a very focused Business Visit aimed primarily at developing inroads into China’s Tier 2 city markets where strong local government relationships are critical.

Introducing Suzhou and Hangzhou

Chinese Proverb:

“In heaven there is paradise, on earth Suzhou and Hangzhou”

About Suzhou

A city built in 514 B.C.; Suzhou has long been one of China’s richest cities. Immediately west of Shanghai is strategically situated in the Yangtze River Delta region, China’s economic epicentre. Suzhou is also located in Jiangsu Province, which has the highest GDP per capita of all Chinese provinces, and the second highest GDP.

Suzhou Development

Municipality population:   10,500,000

Urban population:   4,074,000

Average temperature in June:    23 degrees

Average annual income:    Approx €13,000

According to Forbes ™ China, in 2011 Suzhou was China’s “best business city”, while in 2012 Suzhou was the “most innovative city” in China. Suzhou is also the 2nd largest manufacturing industry base in China, producing, for example, 40% PC sets, 65% mouses, 30% micro-cameras, 10% PC boards of world supply

Suzhou’s ranking among major cities of China 2011 / 2012:

– Patent Applications     NO.1

– Government Service     NO.1

– Patents Grant     NO.2 (2011)

 Best Business Environment     NO.3

– Overall Competitiveness     NO.5 (2012)

– G.D.P     NO.5 (2012)

–  Total Exports     NO.3

–  Total Imports and Exports     NO.4

Irish companies including GlanbiaPM GroupEPS ElectronicsElement Six, etc, have already either invested in Suzhou operations, partnered with Suzhou-based companies, or sold products and services to companies based in Suzhou.

About Hangzhou

Legend has it that Marco Polo called the former imperial capital of China, Hangzhou: “without doubt the finest and most splendid city the world“.

Hangzhou is known for its high level of education, advanced technology industries, considerable wealth and the fabled West Lake scenic area. Four of China’s best known brands were born, and are headquartered in Hangzhou Alibaba and Taobao (which is why Hangzhou is referred to as China’s e-commerce capital), Wahaha (mineral water), and Geely (owner of Volvo electric car research).

Hangzhou

Municipality population:     8,700,000

Urban population:     6,242,000 (10th largest in China)

Average temperature in June:     23 degrees

Average annual income:     Approx €10,000

Ranked by Forbes™ in December 2012, as the second “best city for business” in China, after Shanghai, Hangzhou has benefited almost disproportionately from the spread of wealth, development, and investment from Shanghai, which is 2 hours north. For example, Hangzhou already has 108.5 millionaires per 100,000 residents, China’s highest concentration of wealth.

The provincial capital of central Zhejiang Province, which is considered China’s technological and entrepreneurial heartland, Hangzhou is also situated on the southern wing of the Yangtze River Delta region, where it ranks 2nd in terms of economic prosperity.

Hangzhou’s ranking among major cities of China 2011 / 2012:

  • Patent Applications     NO. 1 (of Provincial Capitals 2011)
  • Government Service     NO.2
  • Patents Grant     NO.2 (2012)
  • Best Business Environment     NO.2
  • Overall Competitiveness     NO.8 (2012)

Kerry Group is one of a number of Irish companies who have already either invested in Hangzhou operations, partnered with Hangzhou-based companies, or sold products and services to companies based in Hangzhou

Sector-related Market Opportunities for Irish companies in Suzhou and Hangzhou

  • Software, e-commerce, animation, gaming design and testing
  • Precision machinery manufacturing
  • ICT
  • Services industry
  • Cleantech / Environment protection
  • Automobiles
  • Bio-pharmaceutical / medical
  • Retail
  • Government
  • Horticulture
  • Chemicals
  • Food, etc…

Note: Do not be put off if your business sector does not appear in the list above, as it is the intention of Irish Exporters Association / Asia Trade Forum to try to assist every company interested in tapping the China market to find potential partners / clients.

Estimated Travel Costs

Once the registration fee has been received and the registration form completed, FcM travel will offer a negotiated package to delegates.  However costs may vary according to individual itineraries and exchange rate.  The costs are based on the first 20 places on the visit.

The FcM travel cost will be approx. €1800 to include:

  • Etihad Flight    (Departure from Dublin:  Sunday 23rd. Arrive in Dublin Saturday 29th)
  • Transfers and internal transport
  • Lunch and evening receptions (2 in each city)
  • 4* Hotel Accommodation

For further information contact:

Ashley Beston, Asia Trade Forum Manager,

Irish Exporters Association ashleybeston@irishexporters.ie  or 01- 642 4170

Niall O’Reilly, Director for China, Irish Exporters Association,

niall@accuratelimited.com

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (ExportImport, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

Accurate Group China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Accurate Group Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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May 14, 2013 · 7:25 pm

September 26th 2012 – Irish Exporters Association / Asia Trade Forum China Business Briefing: “Capitalising on China’s growth – An Accurate Guide to business and investment in China”

In his capacity as Director for China, Irish Exporters Association and Asia Trade Forum, Accurate Group Managing Director Niall O’Reilly will host a roundtable discussion at the IEA’s Dublin HQ titled “Capitalising on China’s growth: An Accurate Guide to business and investment in China”.

You’ve read and heard all about China’s abundant market opportunities, yet the perceived enormity of the task involved is holding you back. What is the impact of rising labour costs in China? Can’t speak the language, don’t understand the culture? How best to take advantage of the burgeoning consumer market there? What are the advantages of setting up an office in China? Want a quick solution? Are you up to speed with the latest regulations and certifications? Do you have the right contacts in local government?

This special Irish Exporters Association / Asia Trade Forum briefing / discussion for senior managers representing information and communication technology (ICT) companies in Ireland either engaged in China business are close to taking that giant  leap of faith into China is a “must-attend” event you certainly do not want to miss!

Given Niall’s 24 years China business experience (see bio below), at this Irish Exporters Association / Asia Trade Forum roundtable briefing you will hear of insightful answers and approaches to China business you probably haven’t heard before.  The IEA / ATF and Niall  are also delighted to highlight the attendance of long-time friend Mr. Chaoqun “Clive” Zhu (see bio below), Investment Promotion Manager at the Suzhou Industrial Park Science & Technology Development Company (SIPSTD), who is visiting Dublin and will be speaking at what promises to be an interactive and insightful meeting.

For further information click on http://www.accuratelimited.com/blog.view.php?id=QFU0QrsoXZ8=

 Would you like to attend?

If you wish to attend please RSVP to Niall O’Reilly (Mobile 0877984071) niall@accuratelimited.com / or Ashley Beston  AshleyBeston@irishexporters.ie by 2:00pm tomorrow Tuesday 25th. Tea and coffee served.

Please note that since the IEA boardroom can only accommodate about 15 attendees, attendance is RSVP Only with requests to attend being accepted on a first-come, first-served basis.

Location / Time

September 26th 9.00 am – 11.30 am

Meeting Room

Irish Exporters Association

28 Merrion Square, Dublin 2

Google Map:

http://maps.google.ie/maps?q=Irish+Exporters+Association,+Dublin&hl=en&ll=53.341841,-6.247101&spn=0.028851,0.084543&sll=53.3834,-8.21775&sspn=7.381528,21.643066&oq=irish+export&hq=Irish+Exporters+Association,&hnear=Dublin,+County+Dublin&t=m&z=14&iwloc=A

About Niall O’Reilly

Niall O’Reilly, Director for China, Irish Exporters Association / Asia Trade Forum, has 24 years China business experience with executive management involvement in six Asia-region start-ups for global organisations including Dell, Gateway, Marrakech and AEP Networks. Niall is a recognised commentator on Chinese business and governmental affairs and is known for initiating and organizing high-profile international events including the visits by Fortune 500™ CEOs to Asia plus the visits by mayors of leading Chinese cities to Ireland.

Niall is also Managing Director of Accurate Group Limited www.accuratelimited.com, a strategic Ireland-China business services advisory and consulting practice (with offices in Hangzhou, China and Dun Laoghaire, Ireland) dedicated to building new opportunities for Irish businesses in China. In 2009 he founded the Ireland China Business Network (ICBN), which now has over 1,200 active members. Niall has a B.A. degree in economics and politics from University College Dublin.

About Clive Zhu, SIPSTD

A recognised expert in China FDI, Mr. Chaoqun “Clive” Zhu, Investment Promotion Manager, will be accompanied by his colleagues Mr. Di Ma, Assistant General Manager, and Ms. Yun Xu, Senior Investment Promotion Executive at the Suzhou Industrial Park Science & Technology Development Company (SIPSTD).

Founded in April 2000, SIPSTD is the state-owned enterprise fully responsible for the development, construction and management of Suzhou’s International Science Park (SISPARK) http://www.sispark.com.cn/english/index.aspx, which is widely considered China’s most successful and innovative industrial park model.

About the Irish Exporters Association (IEA)

One of Ireland’s leading private sector organisations, the Irish Exporters Association is the “Voice of Export Industry” in Ireland, representing the whole spectrum of companies with the export industry.

http://www.irishexporters.ie

About the Asia Trade Forum (ATF)

The Asia Trade Forum was established in Dublin, Ireland to promote new strategies for Irish exporters to build trade with Asian markets. The Asia Trade Forum is part of the Irish Exporters Association.

http://www.asiatradeforum.org

Niall O’Reilly

Director for China, Irish Exporters Association

Managing Director, Accurate Group – China Product & Business Development (Export Source Import) Consultancy

Tel: +353 1271 1830 / +86 152 5719 4468

http://www.accuratelimited.com

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Filed under Accurate China Business Services, Accurate Group, Asia Trade Forum, Irish Exporters Association, Niall O'Reilly

Accurate China Insight: If your business is product sourcing: How competitive is the ‘Made in China’ brand?

Despite the Chinese Government’s past success at restraining inflation, accelerating food, fuel, raw material and labour costs have resulted in a widely held belief that average inflation rates of 4 to 5 percent are here to stay in China, at least over the over the next decade.

Which raises the question: With rises in wage and manufacturing costs set to be the norm is China still competitive as a product source for Ireland’s importers? Accurate China Insight: If your business is product sourcing: How competitive is the 'Made in China' brand?

Ireland’s importers are right to exercise caution when sourcing from China.  However, China still has much working in its favour:

  1. China is politically stable, and such stability is good for business
  2. Low cost countries surrounding China are also weathering an inflation contagion, with inflation rates in Vietnam, India and Pakistan increasing at a much faster rate.

June 2011 Inflation Rates:

Vietnam 20.8%

Pakistan 13.3%

India 8.7%

China 6.4%

Indonesia 5.5%

Malaysia 4.6%

Philippines 4.6%

Thailand 4.1%

(Sources: Respective country central banks) 

3.  Production costs in China are still low, despite rising costs.

4. Skills levels are generally high. While China’s factories could be said to be still at an early stage in their execution of innovative manufacturing techniques, their production processes are still well ahead of similar production operations in surrounding low cost countries.

5.  The striking effects of the ‘Clustering’ in China’s three economic powerhouses [Pearl River Delta (from Hong Kong to Guangzhou), Yangtze River Delta (Hangzhou, Suzhou, Nanjing and Shanghai) and the area around Beijing and Tianjin] which have resulted in the construction of excellent infrastructure, a concentrated material supply chain, and an experienced and skilled labour force.  There is no evidence of such a clustering blend being prevalent in other surrounding low-cost countries.

6.  Productivity and industry familiarity.  While the costs of labour and logistics, as well as labour availability, are driving up factory output costs along China’s coastal rim, cities in central and China, such as Wuhan, Chengdu, Chongqing, Zhengzhou and Hefei, and their surrounding provinces, are much more cost competitive with respect to the manufacture of products in which the value-added and process complexity is low.  Meanwhile, the coastal manufacturing hubs, with their knowledge of particular manufacturing industry sectors, are becoming more focused on complex, skill intensive factory production.  In surrounding low cost countries such instances of high productivity levels and industry knowledge are limited.

The biggest issue for Ireland’s importers relates to fluctuating oil prices and their impact on the cost of shipping products sourced from China to Ireland, which is a worldwide occurrence.

Source:

Niall O’Reilly

Director for China, Irish Exporters Association

Accurate Ireland – China Business Advisers – Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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Filed under Accurate China Business Advisers, Accurate China Insight, Accurate Group, Business, China, Economy, Hangzhou, Hong Kong, India, Ireland, Irish Exporters Association, Suzhou, trade

Accurate China Insight: Entering The Dragon’s Den

Huge Opportunities lie waiting for Irish businesses in China, but know your market

From Ireland’s ‘Business and Finance’ magazine’s ‘Enterprise Insight’ supplement, Q2 2008 edition, by Niall O’ Reilly

The world’s second largest economy China, is now the largest market in Asia, and outside the Euro Zone only second to the USA for Ireland’s exports. According to the latest figures from the Central Statistics Office (CSO) exports to mainland China (excluding the Hong Kong Special Administrative Region) for the first two months of 2008 totalled €324.6 million, a year-on-year increase of 112%.  Exports to the Hong Kong Special Administrative Region over the same period reached €110 million.

 

In the face of the current global economic downturn, a difficult exchange rate and other cost base factors, including the flight of manufacturing processes to low overhead, low material cost countries in Asia and Eastern Europe, as our manufacturers struggle to maintain productivity, the rise in our exports to China is a major achievement and presents convincing evidence that Ireland is at last starting to hit the mark in China business. Given that over the past decade the development of our economic and trade relations with China has been a top priority the Irish Government will maintain that its Asia Strategy, with its particular emphasis on China, is the key reason for  this positive development. What the CSO figures do not reveal, however, is how indigenous Irish businesses are performing compared to multinationals businesses based in Ireland.

 

China’s rise to become Ireland’s eight largest export destination is directly linked to its own export prowess and the craving for technology, infrastructure equipment and knowhow by Chinese enterprises that cannot be satisfied by domestic suppliers. From this perspective it is not surprising that the majority of our exports to China should consist of the information communications technology, machinery and equipment China requires to fuel its heady growth. Buoyed by breakneck 7% to 8% GDP growth in China over the past 10 years, a trend that shows little sign of abating, so long as businesses based in Ireland stay ahead of the technology curve and maintain their competitiveness exports to China will only continue to expand, thus strengthening China’s position as a major export market for Irish produce.

 

Looking ahead, where are the China market opportunities for Irish exporters?

 

Ireland commands a very strong position in the world trade rankings for internationally traded services. Recently published statistics by the World Trade Organisation 2006 show Ireland as the 12th largest services exporter, commanding a 2.6% share of world trade, while services exports now account for 35% of our total export trade. China has only opened up the service market to any great extent over the past four years and there are clearly significant additional market opportunities now for Irish service exports in engineering consultancy, aviation services, information communication technology, education and tourism services. The latter two service sectors are particularly significant given the rise in the spending power of the Chinese consumer.

 

According to the China National Bureau of Statistics, in 2007, China’s retail spending rose 16.8 percent to 8.92 trillion Yuan (US$1.24 trillion), thus adding credence to a widely held view that Chinese demand will this year for the first time become the main driver of world economic growth, with the increase in its domestic spending in current dollar terms contributing more to global growth than US domestic demand. As such, Irish suppliers should be relishing lucrative domestic sales opportunities presented by an increasingly affluent population.

 

Located two hours south of Shanghai is the prosperous city of Hangzhou, Marco Polo’s ‘paradise on earth’, which Forbes ™ Magazine has repeatedly rated as China’s premier business centre. With a registered population of 6.7 million inhabitants and an urban per capita income of RMB21,689, Hangzhou provides the ideal glimpse into the phenomenal growth in the purchasing power of China’s increasingly affluent middle class.  Not only do Bentley, Maserati, Ferrari, and Prada showrooms do a thriving business here, even more remarkable is the thirst to travel abroad whether as tourists, with Paris and London high on the list of preferred destinations, or graduate students from the third ranked university in China, Hangzhou’s Zhejiang University, seeking further education in the best schools in Europe and the USA. 

 

As individual prosperity rises so too are people becoming increasingly concerned about their living conditions. Recognising such anxieties, and looking ahead to population growth of close to 20 per cent over the next five years, in addition to the huge infrastructure building projects already underway, the Hangzhou Municipal People’s Government is actively encouraging projects focused on providing fuel efficiency, cleaner water, better sanitation, and power generation, all of which whether in material or service form present significant opportunities for Irish suppliers. 

 

As patterns of consumption change, to reflect those found in wealthier countries, such as higher levels of meat consumption, the opportunities for Irish suppliers in the development of both the food ingredients market, such as diary fats and proteins, standard cereal and grain products and flours, vegetable oils, or standardised high-quality meat products, and markets for the products of large scale cropping and livestock activities, become all the more apparent. In 2005, Kerry Group quick to seize the market opportunity established its state-of-the-art China manufacturing, technical and administrative facilities in Hangzhou.

 

However, remove the rose-tinted glasses and it quickly becomes apparent that in China the size of the opportunity is only matched by the difficulty in weighing up the risk, as the great challenges for any Irish supplier in entering what is still a relatively immature market quickly become apparent.  China’s rapid growth since its 1978 opening to the world has not necessarily meant greater transparency.

 

Making sound business decisions can be very difficult when there is little timely information available, and when the information available is either unreliable, or misleading.  What’s more, a simple misunderstanding of local business practices, which can be very different from what is taken for granted in Ireland, can harm efforts to develop solid business relationships and leverage them into strategic opportunities. As Kerry, CRH and Glen Dimplex have found, there is an inherent need for proximity to the customer base  for supplying many services. However, this forces small and medium exporter into the high cost of establishing a commercial presence in the China.

 

Rather than going it alone, working with either the Irish Exporters Association, Enterprise Ireland, or some of the more experienced homegrown market-entry consultancy practices with experts based on the ground in China, and their ability to access key business and government decision-makers,  will greatly assist Irish businesses in getting the most out of the unprecedented opportunities available in China.”

Niall O’Reilly

Managing Director, Accurate Group – Ireland China Product & Business Development (Export, Source, Import, Partner Due Diligence) Consultants doing business in China for over 20 years

China Office : 1-3 Ying Hui Xing Zhou, Jiang Nan Shui Xiang Lian Sheng Road, Yu Hang District, Hangzhou. China 310023| O: +86 571 8709 1253

Ireland Office: 93 Upper Georges Street, Dun Laoghaire, Dublin, Ireland| O: +353-1271-1830

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My new ‘green hat’: The Director For China, Irish Exporters Association

  Niall O Reilly - Director For China - Irish Exporters Association

    

Mr. Niall O’Reilly                                                             C.C.     H.E. Liu Biwei
Accurate Group Limited                                                             Ambassador of the People’s 
Suite 315                                                                                          Republic of China
Jujingyuan Yongjin Plaza                                                          40 Ailesbury Road
266-268 West Lake Avenue                                                       Dublin 4
Hangzhou
China 310002                                                                                  Mrs. Mary Whelan
                                                                                                     Assistant Sec. General
           Dept. of  Foreign Affairs
Mr. Alan Buckley
Director of China
Enterprise Ireland
5th April 2008
Dear Niall,
 
The Irish Exporters Association (IEA) wish to confirm your appointment as the IEA
Director for China, effective from the 1st of March 2008.
 
We are confident your wide experience in assisting businesses in China will be of
substantial benefit to Irish companies who wish to enter the market for direct sales
or for joint ventures, working through agents or distributors and sourcing goods and
services.
 
We look forward to your contributions in enabling the IEA’s Asia Pacific Trade Forum
deliver on its 3 year strategy 2008-2010 for China.
 
Yours Sincerely,
 
___________________
John Whelan
Chief Executive Officer, Irish Exporters Association
 

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