Tapping into the Chinese market and finding the right channels to target customers can be hard for foreign companies, especially small and medium enterprises (SMEs).
They tend not to have as many resources or connections as the big guns. However, with the China International Import Expo (CIIE) returning to Shanghai for a second straight year, sellers and buyers of all kinds have a chance to meet and get business going.
A daily bath is one of the most enjoyable activities for Shanghai resident He Ziwen. Working in the financial industry, her life is fast-paced and stressful. She likes pampering herself by using various bath and skincare products.
Taking a bath is still relatively uncommon among the shower-savvy Chinese, and there is a lot of market potential to explore. /CGTN Photo
"Our quality of life is much better than that of the older generations. We are not satisfied with just shower gel while taking a bath; we want something more ritualistic to relax our bodies and minds," He Ziwen said.
Stenders is a Latvian brand famous for bath and shower products. Since it first arrived in China in 2007, the brand now has over 100 shops in big cities. However, Stenders executives say baths are still relatively uncommon among the shower-savvy Chinese, and there's a lot of potential to explore. The CIIE helped Stenders get more business and exposure.
"We have seen our sales income increase since the expo. We signed some big deals with cooperate clients, such as Sinopec. And the media coverage has made more people aware of our brand, which is helpful for our long-term development ," said Yang Gang, CEO of Stenders.
Jute handicrafts from Bangladesh are sold in one high-end departmental store in Shanghai, thanks to CIIE 2018. /CGTN Photo
Finding the right channels or business partners is vital for foreign companies to tap into the Chinese market. Sometimes the matchmaking can take a very long time due to information asymmetry. The CIIE provides a platform matching sellers to buyers, reducing time spent finding each other, and increasing the output of deals.
Jute is a vegetable fiber from Bangladesh. It was used for making ropes and sacks in the past, and is now spun into bags, shoes and handicrafts. Jute products are popular in western countries. However, before the CIIE 2018, it was relatively unheard of in China. Thanks to the expo, it is now sold in one of Shanghai's high-end departmental stores.
"Jute products have very strong historical and cultural elements of Bangladesh, and we never saw such products before. Our art space needs exotic artwork and handicrafts from all over the world. We met its exhibitor at the CIIE and hit it off with them, and brought it to our collection," said Marie Mao, art space manager of Shanghai Art Collection Museum.
Dada Bangla Limited, the exhibitor, got a very active response from business and individual customers at the expo. However, representatives say it is more than just business.
"We are working with my country's poor people, and most of our employees are women. Before joining my company, they were housewives and had no work. If we make a platform for my country's poor people, they can earn more, they can have good jobs, and their lives will be more developed," said Akter Tahera, director of Dada Bangla Limited.
Allowing more people to benefit from the booming Chinese market and economy is the aim of the CIIE. Many are expecting to see more success stories like these at the second expo, which will kick off next month.