Haikou /China/, July 30. /TASS/. The 2nd China International Consumer Products Expo concludes in Haikou (Hainan province, South China). Global corporations and world-renowned companies as well as young brands which presented their products at the exhibition expressed their confidence in the driving force of the Chinese market and business environment of the Hainan Island.
It was often stated in the forums and symposiums held at the exhibition as well as in numerous reports and analytical articles published there that the huge Chinese market plays the role of a "lifeline" or "sales locomotive" for many companies or "a place for adjusting new business models" in the context of the global economic slowdown. Another important topic is the reason why private entrepreneurs and small businesses as well as large corporations choose Hainan to enter the Chinese market.
Why Hainan
TASS correspondents interviewed Belgian entrepreneur Lars Sven Klaver, who together with his wife manufactures and sells women's handbags under his own brand Annaloch. He has been in the business for over 10 years and his production is located inShenzhen (Guangdong province, South China). He came to the Hainan Expo 2022 for the first time to present his new product line and to find potential partners. Because the theme of this year's show is "green consumption," Klaver developed a new series of bags: they are made using non-chemical dyes, discarded materials or leather scraps, and the inner lining is made from recycled plastic bottles.
"Why China? First, it is an important partner in the world. It's a huge market that you can't do without. Secondly, they are very advanced as far as cell phone use is concerned. Now all communication is tied to it and different platforms - WeChat, QQ, etc. Today's consumers are very sophisticated and they consider regular stores obsolete," he said.
"It's very simple - the government has created a new (free trade) zone here," the entrepreneur added. As Klaver noted, Hainan is equivalent to Hong Kong and Shenzhen in the level of business preferences, business environment and other advantages, and somewhere even surpasses them.
"I think the borders will open soon, and you will see people from Singapore, Malaysia, Japan just coming here for the goods," he said. "Besides, Hainan is just a beautiful place - there's the sea, the beaches and the sun," Klaver added. "I think it's a good option to combine business and leisure," he laughed.
"And besides - Hainan is very close. It's only one hour and 15 minutes flight from Shenzhen or Hong Kong. This place is just very well located, and it's extremely important to us," the businessman stressed.
Things are slower in Europe and America
Hainan's geographic location, in addition to its tropical climate, brings it closer to the country's important manufacturing areas, China's Guangdong province, where there are many factories and major seaports, accordign to Klaver. "For example, the main leather industries are located in Guangzhou and Dongguan (Guangdong province). And it's much easier to buy or produce it here instead of going to Italy and waiting three weeks, or even three months," Klaver said.
"Also, we can change quickly depending on the market. For example, if we talk about online sales, we need to specifically talk about online sales. There are special dates in China, say Nov. 11 or vacations in October," he said. "So, you can really focus on those few days of the year and that's it," the entrepreneur shared.
"For example, if we talk about November 11 (Singles' Day or also known as Bachelor's Day - on this date all stores in China hold large-scale sales with discounts - TASS comment), this one day accounts for 40% of our sales for the year. And it's very cool, and that's why we're so focused on it," he said.
His company has experience in different markets, he said, but in China all the business processes, as well as communication with customers, are much faster. "It's not a situation where you just buy something and nobody cares. We can send an emoji or something and they respond to us, ask questions. It's all life on the Internet now," he shared.
"I would say because of the pandemic, there was a situation where we had to rethink our business plan. And that's what the future is all about. In Europe or North America, things are slower in every sense," Klaver said. "People there are still paying in cash. Here at WeChat, it's much faster. You get the product delivered in three days. If you don't like it, you just send it back and no problem," the businessman shared.
"It's a lot easier for the buyer here. If they report something to us or tell us they don't like something, it makes us think. It's also very good for our business," he summarized.
In the eye of the giants
Other exhibitors at the 2nd China International Consumer Products Expo have expressed their confidence in the Chinese market and in the preferential policy and business climate on Hainan Island, including internationally renowned brands from a variety of sectors.
The British luxury clothing and accessories manufacturer Burberry, exhibiting in Haikou for the second time, is optimistic about the development of a duty-free trade in line with the construction of a free trade port on Hainan, writes the China Daily. As the publication points out, the British manufacturer will continue to take advantage of business opportunities in Hainan as a leading resort and shopping paradise.
The LVMH (Louis Vuitton Moet Hennessy) group said it is confident in China's growth potential and suggests that Hainan will become a premium tourist market that luxury brands simply cannot ignore.
According to the publication, Saravoot Yoovidhya, CEO of Thai food and beverage manufacturer TCP Group, said that "China's successful implementation of policies to support Hainan's free trade port in recent years has created new opportunities for companies such as TCP Group. As he pointed out, the Chinese market is central to the company's strategy. "We look forward to expanding and deepening our presence in the Chinese market and providing even more high-quality products to local consumers," the top manager added.
For his part, Weiwei Xing, a partner at avconsulting firm called Bain & Company, "the luxury goods market in China will continue to grow." "The growing consumer base and the digital environment are contributing to this. In doing so, the Hainan market will serve as a key driver for boosting consumption," the newspaper quoted him as saying.
Support from authorities
Sheng Qiuping, China's Deputy Minister of Commerce, said earlier that "this year's expo has provided opportunities for enterprises from all over the world to enjoy the Chinese market."
"We will continue to make efforts to turn the expo into an important platform for expanding trade and strengthening cooperation between countries," he was quoted as saying by China Central Television. "We welcome companies from all over the world to share the opportunities of the Chinese market together and create a new impetus for global economic recovery," he summarized.
About the expo
The 2nd China International Consumer Products Expo will be held from July 25 to 30 and will feature over 2,800 brands from more than 60 countries and regions around the world. Over 600 kinds of products will be unveiled during the expo. As expected, the exhibition will be visited by more than 40 thousand businessmen. France is the guest of honor at this year's event.
The opening ceremony marked the start of the Expo's business program. The exhibition itself started on Tuesday: from July 26 to 28 the exhibition will be open only for the business community and mass media, and on July 29-30 it will open its doors for the general public.