Tag: product

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

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

Niall : Two roads diverged in a wood, and I...

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 food, beverage 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 (Export, Import, Partner Due Diligence) Consultancy

Website: http://www.accuratelimited.com

Twitter: @AccurateChina

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

Accurate China Insight: China business scam – Beware of unusually large Purchase Orders

Accurate China Insight: China business scam – Beware of unusually large Purchase Orders

Niall : Two roads diverged in a wood, and I...

A growing number of small to medium sized companies both in the Republic of Ireland and in Northern Ireland have recently contacted Accurate Group to seek our assistance in verifying the existence of China-based companies (many of which are operating out of the Shenzhen area of Guangdong Province) with generic names such as Brightway, etc., that are sending unanticipated, yet conceivable (and therefore tempting), large purchase orders, with attractive upfront payment terms of up to 50%. Following minimal correspondence, the Irish company contact (usually the Managing Director) is invited to travel to China to sign a contract. However, once in China visiting buyer’s office (which appears to be legitimate, but is merely a respectable cover for a criminal activity), and the initial deposit is due, the seller is asked to pay upfront half the bank fees for the transfer, or a commission in cash. Upon return to Ireland the seller will find no initial payment has being transferred and the party they have been communicating with has disappeared as has any cash they have been paid.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders

The Irish company usually contacts Accurate after a number of email exchanges with the Chinese company, which points to a level of sophistication on the part of the Chinese entity. They have done their homework and know industry specific terminology across a range of sectors including renewables, electrical filaments, and animal feed.

DON’T BE FOOLED BY SUCH SCAMS

  • If the size of the P.O. from a company in China you’ve never heard of reads too good to be true, that’s because it is!
  • There are easier ways to win in China. If you have never dealt with a Chinese company and just want to be sure they are bo na fide then you should contact a long-term hands-on Ireland China business consultancy with offices and Chinese speaking staff on the ground in China.  As veterans of doing business in China, an Irish China business consultancy, knowing the wily tricks played by Chinese companies, can be of invaluable assistance when verifying the true credentials of a Chinese buyer, supplier or business partner…

… and, assuming, the Chinese prospective (product buyer, supplier, partner) company is genuine, an Irish China business consultancy can help you to negotiate and make the sale!

  • Never travel to Company to meet a company without verifying the integrity of the product buyer, supplier, or partner company that has invited you to visit them. In any case such a company will need to supply you with a Letter of Invitation (chopped / stamped with the official Chinese company name – any company doing business in Mainland China should be properly legally established [such as a company, a rep office, a branch, etc.] for tax and invoice issuing purpose), which you need to provide to your local Chinese Embassy when applying for a China entry visa. 
  • Even if you have received a contract in English, assume there is always a contract in Chinese. Ask for a copy and have if verified to ensure that contracts are exact copies of each other.

Incidentally it’s not just small and medium companies who fall prey to sophisticated China scams. No company doing business in China is immune: Look at what happened to Caterpillar who recently had to write off most of a China deal after uncovering “deliberate, multi-year, coordinated accounting” fraud (Source:  http://www.reuters.com/article/2013/01/19/us-caterpillar-siwei-idUSBRE90H1C520130119)?

Do note that these kinds of difficulties are experienced by very few Irish companies doing business in China. Follow your gut instinct, use commonsense and take the same precautions as you would doing business anywhere else.

Accurate China Insight - China business scam -Beware of unusually large Purchase Orders 2

Source: http://accuratelimited.com/blog.view.php?id=t8/dwXC9GMw=

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 24 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

Accurate China Insight: How much does a China sourcing consultancy typically charge in fees or commission for supplier identification, negotiating, inspecting, and product shipment?

Accurate China Insight: How much does a China sourcing consultancy typically charge in fees or commission for supplier identification, negotiating, inspecting, and product shipment?

Niall : Two roads diverged in a wood, and I...

It’s unlikely you will receive a public declaration of charges by a ‘consultancy‘, which is akin to asking how many drops of water are in a bucket. Charges (whether hourly, fixed fee, or on a commission basis) can vary that much.

If you think it’s expensive to hire a professional consultant to advise you on doing business in China wait until you hire an amateur to do the job
“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job”

Here in China many dubious consulting companies claim to offer the services you require, so the first box you need to tick is making sure the sourcing consultancy you eventually work with can reduce your overall costs, reduce your time to market, and improve the quality of your product, thus making the charges worth it. Actually, the sourcing consulting company should be able to save you and your company money overall, even with their charges.

In general, experienced and reliable sourcing consultants, who are not ‘fly by night,’ should make the overall supplier identification, negotiation, inspection and shipping (product import) processes faster, cheaper, and result in better quality control.

Simply put, when it comes to separating fact from fiction says Niall O’Reilly, a China business consultant with over 24 years ‘on the ground’ China business experience:

“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job!”

Accurate Group an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign businesses in China
“要知道怎样前面的路怎么走，最好问从前面返回的人” “To know the road ahead, ask those coming back” (Chinese Proverb)

So you may now be asking yourself “how do I distinguish average sourcing consultants from the professional?”

The average sourcing consultancy will only contact factories and manage communication between you and the factory…and little else.

The best professional sourcing consultancy will employ its considerable experience to evaluate the strategy of your company and engage in a strategic sourcing process that ensures your particular company needs are met. They will not only manage communication with factories in China, but they will anticipate potential risks, and either resolve the problems or develop contingency plans for such issues before they occur. If unforeseen problems do occur, and here in China they will occur, the sourcing consultancy is there to solve the problem and improve procedures so it is controlled in the future.

The Chinese Proverb “一分钱一分货” (pronounced “yi fen qian, yi fen huo”), which translates literally as “one cent gives you one cent’s worth of goods”, succinctly sums up the answer: “you get what you pay for”!

Source: Accurate China Blog – http://www.accuratelimited.com/blog.view.php?id=aFcU1cUL1jw=

Accurate China Business Advisory and Sourcing Consultancy: 24 years "on the ground in China"
Accurate Group is an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign companies in China

So here is a public declaration of Accurate Group’s consulting fees: We have a basic charge for the opening consultation and initial advice. Thereafter, for a formal engagement our fees are structured according to our clients  specific requirements.  The fee arrangements can be hourly, contingency, flat-fee, or commission-based.

Niall O’Reilly

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

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

http://www.accuratelimited.com

This Accurate China Insight originally appeared in the Hangzhou Business Network (HBN) forum: 

http://www.linkedin.com/groups/Hangzhou-Business-Network-HBN-803177/about?trk=anet_ug_grppro

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”

Niall : Two roads diverged in a wood, and I...

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