EPIC NZ
Opening the Doors to China
Presenter Cameron Zhang from
New Zealand New Milk Ltd.
新西兰新牛奶公司
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.
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.
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.
Stakeholder Position
-CIQ: China EntryExit Inspection
and Quarantine
-Customs
NZ
Agencies
CN Govt.
Agencies
-MAF & NZFSA
-NZTE
-NZCTA
New
Milk (or
your biz)
-New adventure
-Future market
-Marco Polo story
CN
Market
Mature
Market
-Existing clients
-Cash cow market
NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.
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.
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.
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.
Markets
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.
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.
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.
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.
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.
Thank you for your time
any questions please?
NZ NewMilk Ltd. confidential. Do not circulate, quote, reproduce, or distribute without written approval from NewMilk.