OPENING DOORS TO CHINA - PowerPoint PPT Presentation

slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
OPENING DOORS TO CHINA PowerPoint Presentation
Download Presentation
OPENING DOORS TO CHINA

play fullscreen
1 / 59
OPENING DOORS TO CHINA
176 Views
Download Presentation
emele
Download Presentation

OPENING DOORS TO CHINA

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. OPENING DOORS TO CHINA Moderated by: Jonathan Watt

  2. ADELE BRYANT Head China Unit North Asia Division Ministry of Foreign Affairs + Trade (MFAT)

  3. New Zealand China Strategy Opening Doors in China

  4. New Zealand China Strategy The Government NZ Inc strategies • Set goals and priorities for New Zealand’s key country and regional relationships   • Coordinate government efforts • Boost New Zealand’s growth • Target key markets • Engage and support business

  5. New Zealand China Strategy Why China? • World’s second largest economy – still growing relatively fast; major influencer in Asia Pacific region • By 2016 China could be the world’s largest economy • By 2025 China is likely to be New Zealand’s largest economic partner • We need to identify opportunities now for future growth • NZ’s relationship with China is crucial to delivering on government’s Economic Growth Agenda

  6. New Zealand China Strategy

  7. New Zealand China Strategy New Zealand’s China challenge • To translate excellent political ties and a trading framework into tangible benefits for New Zealand. • To utilise our strong levers – China New Zealand FTA (2008), four firsts, knowledge and connections

  8. New Zealand China Strategy

  9. New Zealand China Strategy The vision for 2015: “New Zealand and China have strong and resilient economic, political and people to people relationships which have stimulated New Zealand’s innovation, learning and economic growth.”

  10. New Zealand China Strategy Goal 1 - Retain and build a strong and resilient political relationship with China • Importance of political relationship • Ministerial visit programme – especially in context of 40th anniversary • Establishment of NZ China Council

  11. New Zealand China Strategy Goal 2 - Double two way goods trade with China to NZ$20 billion by 2015 NZ exports have tripled since FTA Underpinned by commodity growth Development of higher value products and services. NZTE focus on high growth companies project and priority sectors.

  12. New Zealand China Strategy Goal 3 - Grow services trade with China, education by 20%, tourism by 60%, by 2015 High value, profitable non-commodity growth Education market analysis and develop targeted branding and promotion campaign Support and facilitate expanded air links

  13. New Zealand China Strategy Goal 4 - Increase bilateral investment to levels that reflect the growing commercial relationship with China Current levels low, room for growth Creation ofInvestment advisory positions based in China

  14. New Zealand China Strategy Goal 5 - Grow high quality science and technology collaborations with China to generate commercial opportunities Commercially-focused initiatives under the NZ China Strategic Research Alliance. Lanzatech – NZ technology and Chinese capital in commercial venture

  15. New Zealand China Strategy Cross-cutting Value Proposition: Develop and Protect the New Zealand brand • Safe food • World-beating tourism • Tikanga Maori

  16. New Zealand China Strategy Ministry of Foreign Affairs and Trade Role: Protect and promote New Zealand's interests in China Leadership role for the official relationship – onshore and offshore China Strategy Coordination 40th Anniversary Opening doors for business

  17. New Zealand China Strategy New Zealand China Free Trade Agreement Since October 2008, bilateral trade has increased 50% - NZ exports have increased 150%. Preferential tariff rates resulted in duty savings of NZ $130 million over the last two years. Over 90% of tariff lines duty free since Jan 2012. Keen for business feedback on challenges and opportunities.

  18. New Zealand China Strategy OPENING DOORS TO CHINA: NEW ZEALAND’S 2015 VISION http://www.mfat.govt.nz/NZ-Inc/6-Opening-doors-to-China/index.php

  19. New Zealand China Strategy

  20. OPENING DOORS TO CHINA Moderated by: Jonathan Watt

  21. JOHN BEDKOBER International Market Manager New Zealand Trade + Enterprise (NZTE)

  22. Opening Doors to China - Introducing the NZ Inc China Strategy John Bedkober International Market Manager New Zealand Trade and Enterprise 18th May 2012

  23. New Zealand’s exports to China have been growing strongly while the trade deficit has been shrinking Trade with China 2006-2011 NZ $BN

  24. We are sharpening our focus… strategy is about choice Export goods earnings, year to June 2011* 2000 NZTE CUSTOMERS $36 billion 260 Companies earning >$25m $5 billion 460 Focus 500 Companies $5-$25m $3 billion 12,000 Companies < $5m Number of New Zealand exporters *Figures are rounded to the nearest billion and are for exports of goods only. **NZTE customer numbers include service companies *Figures are rounded to the nearest billion and are for exports of goods only. **NZTE customer numbers include service companies

  25. For NZTE… we are focusing on commercial companies

  26. OPENING DOORS TO CHINA Moderated by: Jonathan Watt

  27. CAMERON ZHANG Logistic Manger New Milk

  28. EPIC NZOpening the Doors to China Presenter Cameron Zhang from New Zealand New Milk Ltd. 新西兰新牛奶公司 NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  29. New Milk introduction • We are an infant formula OEM manufacture. • Focusing on formulated premium dairy products • Packing format includes 900g, 400g and 200g cans and easy opening sticks NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  30. New Milk introduction • Located in the Airport industrial park • Modern hygienic factory • Efficient equipments NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  31. New Milk introduction We don’t own brands and don’t marketing in retail markets We make infant formula products based on client required specification, and packing format One stop turn key service, including formulation NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  32. Stakeholder Position • MAF & NZFSA • NZTE • NZCTA • CIQ: China Entry-Exit Inspection and Quarantine • Customs • New adventure • Future market • Marco Polo story • Existing clients • Cash cow market NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  33. Government Agencies CN Govt. Agencies • CIQ: China Entry-Exit Inspection and Quarantine http://en.ciqcid.com/ • Understanding rules and regulations • Be open minded • Find the right partner • NZ China FTA • Competitive tariff vs Non-tariff barriers • E.g. low tariff rates give advantage to NZ products • E.g. testing regulations raise the bar for imports NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  34. Government Agencies CN Govt. Agencies • Examples and Discussion: • GB standards in diary industry • E.g. one trading company brought products from Europe to China without even considering quarantine and standard issues, the products had been returned (more seriously, it could be destroyed). • Suggestion: • Understand your sector in China • Do enough homework • Finding the correct party to talk to • Always be cautious NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  35. Agencies NZ Agencies • MAF & NZFSA • Provide manufacturing rules and regulations • NZTE • Different programs to facilitate trade • NZCTA • Large NZ China business memebers • Member events provide market info. and networking opportunities • Valuable experiences to be shared NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  36. Markets Passion Hard work Communication I care! CN Market • Everyone has its own China story China is not that different from any other business environment • Value for money • Long term relationships • Meeting their supply requirements • Quality • Profits • Target market section • Finding the better trusted corporation partner NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  37. Markets CN Market • Some General Points #1 Quality and Premium – Not just a perception #2 Flexibility and able to understand the unique local environment #3 Use your strengths #4 Don’t forget the small talk (cultural) #5 Negotiating Skills #6 Control of your organization in China (WOFE/ Representative Office or JV) #7 Have a robust strategy with many facets #8 Use the NZ resources available #9 Have determination otherwise its hard to last the distance! #10 Differentiate yourself form your competitors by innovation and smarts – Our clients are very entrepreneurial they expect the same from suppliers. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  38. Markets CN Market • Challenges: • Attaining legal status to operate, export, import • Understanding cultural differences • Achieving a work life balance while working in China • Completing the work to a quality standard that meets your clients expectation • Being cost competitive with local companies and foreign companies who are well established in China NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  39. Markets CN Market • Solutions: • Form a WOFE where we have complete control • Use a combination of local on the ground services (accounting, legal) and international firms • Employ Chinese staff who have spent sufficient time in New Zealand to understand New Zealand business thinking, culture and language. (usually tertiary educated in NZ) • Employ local resources and use local suppliers where possible to maintain competitive edge • Offer a unique solution that other competitors can not offer • Work hard, but socialize with the locals so you understand their way of life and thinking • Utilize trade associations (NZTE etc, we have probably not done this enough) • Have a long term outlook and develop long term relationships NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  40. Markets Mature Market Maintain enough focus on your existing markets and clients Finding ways to bring your business to the next level from both ways. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  41. Thank you for your timeany questions please? NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk. NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  42. OPENING DOORS TO CHINA Moderated by: Jonathan Watt NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.

  43. PAUL O'BRIEN Chief Executive Officer Easiyo Products Limited

  44. Department of Internal AffairsConference Opening Doors to China China will soon be NZ’s biggest trading partner. China has an insatiable demand for NZ Dairy products. Infant Formula, Milk commodities and ingredients are critical for NZ exports. Yogurt demand is growing rapidly 23% YOY (off a relatively small base). Yakult success has fueled probiotic demand.

  45. Drinking yogurt outsells spoonable yogurt 2 : 1. Local yogurt is generally low quality (runny/sweet). Little or no imported yogurt due to weight / cost / expiry. Demand for probiotics, protein, calcium and taste is high. Easiyo has been selling in china for 4-5 years. There are 450 illegal Easiyo web sites now!

  46. Initially Easiyo had an “exclusivity” model. One Distributor for one country – exclusive. But for China, it is too big and complex. Sales were slow, although easy to manage. Milestones were either not set or not met.

  47. The Exclusivity model was adopted to; Several non exclusive distributors for China/ SE Asia. However infighting rampant over pricing + territory. Web specials are too transparent, lots of grief! Supervision and admin costs increased to referee fights.