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Success Stories

Among the three million European SMEs that are exploring the global market, more and more are succeeding in China. Read their stories below to find out how they have benefited from the services at the EU SME Centre and made their first entry successfully in China. 

Success Stories

Tapping into China’s Corporate E-Learning Market

Gothia Logistics AB is a Swedish company that develops online training programmes in logistics, lean production and purchasing in order to help clients increase efficiency and improve productivity. Active in China since 2003, the company has been offering online training courses in both English and Chinese for employees in factories around the Yangtze River Delta region.

With the help of the Centre’s business development team, Gothia Logistics found a list of companies to participate in a research project on the difference in continued education between companies with various cultural backgrounds.

The Centre’s webinar on “How can foreigners establish an office in China?” helped the company acquire essential information on setting up a legal entity in China. Gothia Logistics also received comprehensive advice on employment arrangement forms available for wholly foreign-owned enterprises (WFOEs) in China.  

We used a great deal of services from the EU SME Centre’s website, especially the online enquiry service which allowed us to ask more specific questions on HR & legal issues. In addition, the Centre’s webinars are good sources of more resources. The EU SME Centre has been a great support for us when setting up our business in China. 

 

-Kjell-Åke Rönnberg, CEO, Gothia Logistics AB

Visit Gothia Logistics AB website

Pampering Tianjin Expats with French Cuisine

Maia Orgogozo fell in love with Tianjin during her first visit of the city. She then spent more and more time there before eventually moving over from France. She realised some foreigners in Tianjin love the city very much, while some are homesick.  In order to contribute to the happiness of both groups, she decided to make use of her cooking skills and opened a restaurant. 

After almost two years of conducting all necessary registrations and setting up her business, Oh My Gourmet became operational in 2012. With Oh My Gourmet, Maia does not only offer dining at the restaurant, but catering, private dining and cooking lessons as well. Step by step, Maia managed a healthy growth of her business, always focusing on ensuring the top quality of service and food. The business is thriving, being amongst the top five rated restaurants in Tianjin on the website of TripAdvisor. 

This success is based on the very hard work of the French entrepreneur. Maia said: “For an entrepreneur, there are new challenges every day, there is always work to do. You do not really have the time to sleep and can forget your social life in the first year of a new start-up, apart from that concerning work. It is very tough.” The second key factor to Maia’s success is that she rather invested more time in the beginning to ensure that her business is set up properly and compliant with all laws. Maia was not deterred by the long registration process, she feels that: “Those legal procedures take long everywhere in the world, it is just that China gives the idea that there are lots of possibilities for short cuts. This might be the case for locals but certainly not for foreigners.”

To ensure the legal compliance at all time, Maia needed the help of the EU SME Centre. After going through all the relevant guidelines on the Centre’s website, she enquired with the Centre's legal experts. In order to find out the exact scope of Oh My Gourmet’s business license, the Centre’s legal expert launched an enquiry with officials in different cities and in the end secured a definite answer from officials in Tianjin. Maia appreciates the reliable and independent advice from the EU SME Centre and says that it helped her a lot during the initial phase of setting up her business.

When asked about the advice that Maia would like to give other European entrepreneurs in China, she recommends: “The competition in Tianjin as well as in China is very tough. There are new obstacles and challenges to your strategy and original ideas every day, so many things make you doubt. It is easy to lose focus on the original plan. It is of course important to stay flexible, adapt your product and strategy to each situation, but it is very important to stay focused, too. Never lose track of your goals and do not get distracted.” 

Chinese legislation and regulations are often not very clear and the Centre was a great help in assuring me of what is allowed and what not. They conducted a real legal investigation for me; I myself could never have done that because I lack the knowledge and resources.

-Maia Orgogozo, Founder&CEO, Oh My Gourmet 

Supporting Chinese Hospitals with Clinical Products from Ireland

The Irish company Serosep is a leading producer of laboratory diagnostic products that are broadly used in hospitals and clinical practices. After identifying China as a market with huge potential for their products, Managing Director Dermot Scanlon and Export Sales Manager Eoin Kelleher had the idea of opening up a wholly foreign-owned enterprise (WFOE) in China. However, after attending a seminar of the EU SME Centre and enquiring several times with the Centre’s experts, they realised that it would be better to start with working with a distributor instead.

Dermot and Eoin then found Beijing ALT Biotech, a Chinese distributor with knowledge of the healthcare market in China. Together they completed the lengthy process of registering their company and products in China. This took more than 6 months, but then sales could finally start in China. At the time of the interview with Eoin, he expected the first order to be coming in the following weeks and it shipped from Serosep in May 2014. For the beginning the target clients are private practices and laboratories that work for private hospitals.

Serosep first got to know the EU SME Centre through another Irish SME. They took part in many of the Centre’s webinars and used the documents in the Knowledge Centre on the EU SME Centre website. In the beginning they sent several enquiries about setting up a WFOE in China through the Ask-the-Expert service. The information they received from the Centre made them change their perception of how to do business in China and how difficult it would be to enter the market. It directly impacted Serosep’s change of strategy.

We appreciated the competent advice from your experts very much. The seminar was brilliant. The legal expert who held it could answer every single detailed question. We left without one open question still in mind.

-Eoin Kelleher, Export Sales Manager, Serosep 

Visit Serosep Ltd. website

Getting the First Container of Beer from the UK to China

Lancaster Brewery is a British company producing and selling a variety of beer products such as ales and ciders, located in the North West of England. 

The company entered the Chinese market in July 2016, successfully reaching the country and clearing the customs in less than a month. It targets Guangdong province to start with but plans to expand business in other first-tier Chinese cities with a focus on Shanghai in the near future.

Lancaster Brewery is currently exporting to China with the assistance of a local Chinese business partner who is handling the process of customs clearance and relabelling in bonded warehouses.  The company has also planned to send an employee to Guangzhou for a period of six months to represent the brand in the market, provide support to the partner and develop a network of distribution channels. 

During their market research process, Lancaster Brewery came across the EU SME Centre’s content online, including the webinar on Alcoholic Drinks Market in China and publications on the Food & Beverage Market in China and Ways to Enter the Chinese Market.  The information helped the company better understand the technicalities of exporting products to China and to clarify the requirements for labelling, customs procedures, and intellectual property protection in China.

The Alcoholic Drinks Market in China webinar, held on May 10th, provided me with crucial data to pitch the China opportunity to our company board and win their approval.

- Giulia Ravasi, International Export Manager at Lancaster Brewery

Lancaster Brewery aims to position its brand in a niche market in China to attract affluent consumers, including expatriates and Chinese who have previously worked or studied abroad and therefore have developed a taste and preference for foreign food products and brands.

As advice for other European businesses interested in the Chinese market, Giulia emphasised on the role of establishing trusted relationships with Chinese business partners, doing market research and willingness to look for help.

“Do your research and look for help. Sometimes SMEs lack the specific knowledge and skills required for such a challenging process, but help is available out there to overcome these obstacles and barriers”, said Giulia. 

Visit Lancaster Brewery’s Website

Accessing China's Fashion Market

Just Campagne is a family-run business based in France, designing and making 100% hand-made leather bags and accessories. With three boutiques, two in Paris and one in Biarritz, the company is looking to develop in the Asian market, in particular in China.

In their early days in China, they carried out a market study in Beijing by organising private events for potential clients to show them their products. The feedback that Just Campagne received after the events was very positive and encouraging.

Célia Berkouk, Head of Marketing & Sales at Just Campagne, first heard about the EU SME Centre during an event organised at Capital M by VIVA – a Beijing-based women’s professional network. After being introduced to the Centre and receiving advice on the Chinese fashion industry from Rafael Jimenez, the Business Development Expert at the EU SME Centre, Célia very quickly got valuable advice to get started.

“They fully understood that our product category is not aimed at the mass-market, ” said Célia. China is a high potential market for Just Campagne, because customers are in search for niche and exclusive products with great quality and service. The Centre suggested exploring in detail the showrooms scene in Shanghai which, despite being relatively recent, is a fast way to approach the Fashion Complements market in China.

 “Getting to know in detail how the supply chain works for the so-called showrooms is a bit tricky without the counselling of true experts. The EU SME Centre reacted fast informing my company to whom to contact in the Shanghai fashion scene to navigate through the world of showrooms.”

Understanding payment methods of Chinese travellers and “daigou” was also very useful for Célia. Just Campagne adopted Chinese payment methods for developing brand awareness for Chinese people travelling abroad and visiting one of the stores in France. All the boutiques accept UnionPay and the ones in Paris accept AliPay as well.

No less important was the insistence on registering the company’s trademark in China. Early on, the Centre referred Célia to the China IPR Helpdesk to seek advice on their trademark issue.

A top tip from Célia is “always check your trademark registration status in China before going any further. Small companies don’t always have this in mind straight away, but especially for Chin, this is the very first thing to be done!” 

Visit Just Campagne’s Website

Expanding Research & Development Partnerships in China

The International Centre for Numerical Methods in Engineering (CIMNE) is a Spanish public R&D centre aimed at the development of numerical methods and computational techniques for advancing knowledge and technology in engineering and applied sciences. CIMNE is now expanding its R&D partnerships and promoting technology transfer activities in the Chinese market. Since its first project in China in 2005, CIMNE has successfully increased its activities through a company created in Beijing in 2013.

The EU SME Centre has provided critical support both in the course of establishing the company and in the subsequent business development process. Given the different practices and legal framework between China and Europe, legal compliance is a real challenge for any European SMEs willing to set up a base in China. CIMNE was able to confirm the advice obtained by independent consultancy firms on legal procedures for the company establishment. Through consultation services with the EU SME Centre, the company was reassured about its legal compliance in China.

CIMNE also received specialised advice in the ICT sector. The Centre helped the company to understand unique aspects of the Chinese market, which allowed it to adapt its operations to the local environment, redesigning the business strategy as well as revising key content for contracts signed in China. In addition, CIMNE has taken advantage of several matchmaking events organised by the Centre, by meeting with new business partners.

The EU SME Centre provides highly professional assistance. Their services are as spotless as those you might get from independent consultancy companies. For any corporate manager facing a new environment such as China, I would always recommend to double-check some key decisions with the EU SME Centre.

Sònia Sagristà, General Manager, CIMNE (Beijing) Technology Consulting Services Co. Ltd.

Visit CIMNE website

Getting Chinese Tourists on Board

In 2012, over 83 million Chinese tourists travelled abroad and spent more than €75 billion overseas, making China the world’s largest outbound tourism market. Dreamboat, a Czech SME providing travel services for tourists and business groups from Asia, began to gain a foothold in this booming market in 2012. The company identified European cruise trips as a niche market that has not yet been fully exploited in China, and began to partner with Chinese companies and the Czech Tourism Office in China to organise Danube River cruise trips for Chinese tourists.

The EU SME Centre supported Dreamboat during its early stage of establishment in China. The Centre’s free hot-desking service provided its staff a professional working environment while it was developing partnerships with local travel agencies in Beijing. The Centre’s guidelines and webinars explaining changes in China’s visa rules also kept the company informed of updates that affected its employees working in China. 

Among the advice offered to SMEs preparing to do business in China, Zofia Guranova, the company’s China sales manager, mentioned that conducting proper due diligence on potential Chinese partners is one of the most important first steps to take.

“I can highly recommend the Centre’s hot-desks to any European SME that wants to start up a business in China or is coming to Beijing for a business trip. The Centre also offers benefits that I personally find really helpful - for instance a consultation with an experienced specialist in both the legal and business field. Moreover, the location is perfect and the atmosphere is really friendly; the staff is always willing to help.”

-Zofia Guranova, Sales Manager, Dreamboat

Visit Dreamboat website

Spanish SME Brings New Functional Ingredient to China

Entering new active ingredients into the food or health industry market can be hard, in particular if the company is trying to export its products abroad. For the case of China, market access regulations can be of great complexities. 
Asking for assistance in these regards, the Spanish company Lipofoods contacted the EU SME Centre. The representative of the enterprise discussed with our experts about the imports of a phytosterols in 2017, a specific functional ingredient with cholesterol lowering effects. Following further consultations, the company managed to master the modalities that need to be followed in order to export its products to China. This understanding affected the positive growth of the company’s exports of calcium to China in 2017, another functional ingredient produced by Lipofoods. 
Recently, Lipotec – the company from whose spin-off started Lipofoods- attended the EU SME Centre’s training “How to Set Up a Cross-Border WeChat Shop”, held in Barcelona.  The company contributed to the discussions of the training by providing their own experience with Chinese market access regulations. They shared with us that a well-known cosmetics firm has just started to sell online in China a cosmetic with some of Lipotec's active ingredients..
“I personally consider the EU SME Centre as a great support for European Companies in order to have a better understanding of the complexity of China, in terms of regulatory, trends, culture, society and business. I really appreciate the great support of the EU SME Centre and especially from Rafel Jimenez Buendia, for his personal and professional help.”

Background

Entering new active ingredients into the food or health industry market can be hard, in particular if the company is trying to export its products abroad. For the case of China, market access regulations can be of great complexity. 

What We Did

Asking for assistance in these regards, the Spanish company Lipofoods contacted the EU SME Centre. The representative of the enterprise discussed with our experts about the imports of a phytosterols in 2017, a specific functional ingredient with cholesterol lowering effects.

Success 

Following further consultations, the company managed to master the modalities that need to be followed in order to export its products to China. This understanding affected the positive growth of the company’s exports of calcium to China in 2017, another functional ingredient produced by Lipofoods. 

 

Recently, Lipotec – the company from whose spin-off started Lipofoods- attended the EU SME Centre’s training “How to Set Up a Cross-Border WeChat Shop”, held in Barcelona.  The company contributed to the discussions of the training by providing their own experience with Chinese market access regulations. They shared with us that a well-known cosmetics firm has just started to sell online in China a cosmetic with some of Lipotec's active ingredients.

I personally consider the EU SME Centre as a great support for European Companies in order to have a better understanding of the complexity of China, in terms of regulatory, trends, culture, society and business. I really appreciate the great support of the EU SME Centre and especially from Rafel Jimenez Buendia, for his personal and professional help.

-Iván Marcos Peláez, Area Sales Manager APAC, lipofoods

 

Visit Lipofoods Website

Catering Artisan Cuisine to Chinese Palettes

Marco Polo Import Export is a food & beverage company with a special focus on Spanish gourmet food. Setting foot in the China market, first in Guangzhou, as early as 2008 to export red table wines, the company saw the demand for authentic Mediterranean cuisine and soon expanded its product portfolio to a wide range of artisan food, including cured ham, fish & vegetable preserves, chocolates & sweets and frozen prepared food. Marco Polo aims to deliver not only staple Spanish gourmet to high-end hotels and restaurants, but also a fine dining experience through restaurant design and catering management. 
 
Currently Marco Polo is making progress on two frontiers: using a franchise model to sell a leading Spanish chocolate and sweets brand Torrons Vicens (founded in 1775) in Tianjin; and collaborating with more distributors for their high potential frozen prepared food products, which are easy to make, very safe, and convenient to prepare.
 
The EU SME Centre has become a primary contact point for Marco Polo in its market approach. Through the Ask-the-Expert channel, the Centre’s enquiry help hotline, our experts assisted Marco Polo in understanding standard and conformity issues for imported chocolates, provided legal advice for franchising, and helped in identifying partners for business development. The company also got the chance to attend the World of Food Exhibition (2015) in Beijing and met face-to-face with our experts there.
 
Finding the right business partners in China can be a very challenging task. The Centre helped introduce Marco Polo to local contacts, as well as to deepen their cultural understandings to obtain more valid feedback. 
 
“My tip for SMEs: get someone on your team that speaks Chinese. It demonstrates your commitment to the market and will give you an understanding that you otherwise wouldn’t get.”
 
The future looks bright; Marco Polo is now looking to open a store in northern China and is in negotiation with business partners in Tianjin, introduced by the EU SME Centre. 
 
“Our company registered with the Centre and participated in various online seminars regarding different business areas for China, which we found to be very concise and useful. Furthermore, there is always a professional reply to my enquiries from your expert team…I felt grateful to receive those comments and to know whether our company is going the right direction or not. China is known to me, however it is changing ever so fast and it is always difficult to keep up with! “
 
-Marco Piccioni, Marketing Director, Marco Polo

Visit Marco Polo website

A French SME’s Travels on the Belt & Road

Siveco China is a French SME specialised in maintenance and facility management consulting. It has been operating in China successfully for more than 10 years with more than 850 customer sites, utilising advanced technological tools to help Chinese plants, facilities and infrastructure owners increase competitiveness in the fast-changing domestic and global markets.

Siveco China’s involvement in the Belt & Road can be traced back to many years ago when it started to assist Chinese EPC (Engineering, Procurement and Construction) companies to maintain their overseas projects in Southeast Asian countries. One of its clients is China National Electric Equipment Corporation (CNEEC). Siveco China provides computerised maintenance management system (CMMS) and related services for the client’s two power plants in Malaysia and Indonesia. Later on, it developed more projects in countries including Brunei, Laos and Thailand. In 2012, its business also expanded to Algeria with new clients from South Korea. 

When reflecting on the company’s success in China, Bruno Lhopiteau, the Founder and General Manager of Siveco China, considered their long experience working with Chinese infrastructure projects combined with abilities to work with international clients as the key factors.

“I would also say that our experience in China, such a highly competitive market, has also made us very fierce and tenacious, with both extreme survival skills ready for short-term business as well as a very long-term strategic view towards the market. I think these are the characteristics of companies that succeed in China”, said Bruno.

As for the company’s future plan, Siveco China intends to target on the Belt & Road countries where Chinese and Korean firms are active, by talking directly to major infrastructure owners, usually the government ministries. It has a wide range of client profiles and plans to work more with overseas Chinese investors primarily in oil and gas projects and large Chinese state-owned enterprises in waste, water and power markets. It has also set up a dedicated team to help its clients better understand the system and how it adds value to their tenders. 

Siveco China has also observed some changing trends in this industry after working with Chinese clients for so many years. For example, it recently carried out a survey on “Maintenance in China” together with Shanghai University’s Sino-European School of Technology, which showed an increasing awareness among Chinese companies towards the importance of maintenance and risk prevention involved in operating large infrastructure projects. 

The company first came across the EU SME Centre at a business event in Suzhou, and has been using the Centre as a source of information on various topics including regulations, intellectual property, commercial development, and as a place to find experience from other companies. The Centre also published a case study to introduce the company’s experiences to more European SMEs. 

Leveraging Centre’s instrumental resources, the company has developed a more refined understanding of the Chinese market. 

“I think the Centre is an invaluable source of experience, especially for new entrants to avoid common mistakes and more generally to get ‘inspired’ from other SMEs, even those operating in totally different sectors. I particularly enjoy reading the case studies for this reason. The EU SME Centre is highly complementary of the chambers of commerce, which provide different services.”

– Bruno Lhopiteau, General Manager of Siveco China

To learn more about Siveco China, visit its website here.

Visit Siveco China’s Website

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