GSME Provides Direct Services and Support to North American Companies Seeking to Sell Their Consumer Products into China or Develop Consumer Product Businesses with China
The China Consumer Goods Market
What are Chinese Consumers like: What are They Looking For: And What Opportunities Exist for Foreign Consumer Product Suppliers?
China is the World’s Greatest Consumer Product Growth Market.
What are leading independent sources of expertise on the Chinese Consumer Product Market saying about China’s Future as a Consumer Product Market?
From Mckinsey and Company’s Report on” Why Chinese Consumers Will Continue to Surprise the World”
“China’s consumption has been growing faster than just about any other country’s in absolute terms.”
“The number you really want to keep in mind is household income. You can’t have consumption without income. And here’s where it gets really awesome. China’s household income is huge. It is now likely above $5 trillion a year.”
From the World Economic Forum:
“China’s consumption growth is tracing a staggering trajectory. China’s consumer economy is projected to expand by about half, to $6.5 trillion, by 2020—even if annual real GDP growth cools to 5.5%, below the official target. The incremental growth of $2.3 trillion alone over the next five years would be comparable to adding a consumer market 1.3 times larger than that of today’s Germany or UK.”
From China Business Review:
“Discretionary spending is buying the stuff you like but don’t need. Or you only sort of need. And, fortunately, people seem to have an endless appetite for everything from entertainment to skiing to caffe lattes. Chinese citizens are now moving beyond being able to only afford the basics of life, and their discretionary spending is taking off. Growth in spending on annual discretionary categories in China is forecast to exceed 7 percent between 2010 and 2020, and growth of 6 to 7 percent annually is expected in a second category of “seminecessities.” Both of these categories are growing faster than spending on actual necessities, which are expected to grow around 5 percent a year.”
From China Business Review:
“Chinese consumers demonstrate different shopping patterns depending on their wealth, age, and location. Though many Chinese consumers demand less expensive products, but a significant proportion is willing to pay a premium for higher quality. The biggest change in Chinese consumer behavior comes from the young generation’s rising wealth and increasingly Westernized lifestyle. As time goes on, the demand for higher-quality products, particularly among younger generations, will accelerate and present huge opportunities for foreign brands.
“Chinese consumers generally favor foreign brands. Product safety incidents and lax government supervision have scared Chinese consumers away from certain domestic products. Consumers will often pay a premium for foreign brands to ensure quality, particularly for important items such as infant formula. Foreign companies should devote resources to ensure Chinese consumers know their products’ true origin.”
“Pricing is a sensitive issue. Pricing a foreign brand in China can be tricky. On one hand, Chinese shoppers believe the higher the price, the better the quality or the higher the status. If a foreign brand is priced lower than a local one, shoppers may suspect that it has defects. On the other hand, the premium Chinese consumers are willing to pay varies by product category and by consumer groups. For example, Planet Retail finds that young shoppers are willing to pay double for foreign-branded infant formula or five to seven times more for foreign bottled mineral water, but older consumers are not. Most modern retailers in China implement a high-low pricing policy. To create a low price image, hypermarkets and supermarkets price frequently purchased products low to match and compete against rivals while charging a premium on impulse purchases and other price-insensitive products.”
What is the Situation with Respect to China’s Food and Beverage Consumer Product Market?
China is the World’s Leading Food and Beverage Market
China continues to be the world’s largest consumer market for Food and Beverage products, after surpassing the United States in 2011. This makes the Chinese market increasingly appealing for foreign brands, especially as Chinese consumer behaviour shifts.
Despite a fragmented distribution infrastructure and growing local competition, opportunities for North American companies to sell their products in China are going to grow further.
Growth of imported Food and Beverage Products is driven by rising disposable incomes, limited arable land, water scarcity issues, urbanisation, an improving logistics system, growing concerns for food safety, as well as a growing taste for foreign foodstuffs.
GSME Services and Support to North American Companies Seeking to Sell Their Consumer Products into China or Develop Consumer Product Businesses with China
Because of the particular capabilities which we have at our disposal through our China partner (Uniquantum Investment Ltd.), and because of the tremendous market opportunity that China’s consumer product market represents, a major focus of GSME activities is to assist and support North American Companies to be able to sell consumer products into China into the high opportunity market areas, and under the best arrangements.
GSME with its China partner Uniquantum Investment Ltd. which has considerable expertise, and can assist in raising, and providing financing to support consumer product companies – has specific capabilities for supporting the sale of consumer products being sold into China, and for supporting the development of businesses selling consumer products into China.
Uniquantum Investment Ltd has considerable expertise on, and direct relations with, and continuing ties to China’s consumer product sector and market.
Uniquantum Executives have held senior positions in China’s Consumer Product Sector and its Food and Beverage Sector – including one of the senior partners who is the former Chair and CEO of China’s largest Food and Beverage Company, COFCO – which also owns and operates one of China’s largest Food and Beverage E-commerce platforms as well as having retail store outlets throughout China. Members of Uniquantum Investment Ltd. Senior Management Group hold positions on a number of China’s major National Industry Associations for these sectors. This includes membership on China’s Green Foods Association, National Grains Associations and National Trademark Association. In fact, one of the Uniquantum Investment Ltd. Senior Partners has been the Chairman of China’s National Trademark Association.
From 1999 to 2017, the Senior Partners of Uniquantum Investment Ltd between them have sourced financing, and invested into, more than 30 leading Chinese companies. These corporate investments included a number in the consumer product and food and beverage product sectors:
COFCO Coca Cola (the China Joint Venture Company co-owned by COFCO and Coca Cola)
With COFCO owning 65% share and Coca-Cola 35% share, COFCO Coca-Cola Beverage Co., Ltd. (hereinafter referred to as COFCO Coca-Cola) is a partnership between COFCO and the Coca-Cola Company, and is the only Coca-Cola bottling group held by Chinese partner in China. As one of the fastest growing Coca-Cola bottling groups, COFCO Coca-Cola has successfully entered and kept its position in the world’s top 10 Coca-Coca bottlers just 10 years after its foundation.
COFCO Coca-Cola’s main business involves production, distribution, promotion, and sale of Coca-Cola products and Chinese brand products, providing consumers with soft drinks, fruit juices, fruit milks, water, coffee, tea and functional drinks etc., covering 8 large categories and 17 brands.
http://www.cofco.com/en/BrandProduct/COFCOCocaCola/
Greatwall Wine
Greatwall Wine, China’s largest Wine Enterprise, is COFCO’s Wine Production Company with wineries in China, and around the world.
COFCO Wine and Spirits, the specialized platform for COFCO’s liquor business, is the majority owner of Greatwall Wine. COFCO Wine and Spirits was the producer of the first bottled wine in the People’s Republic of China, and aims to become China’s most valuable international wine and spirits company with strong brand influence and abundant product mix.
Xibei North-West Food
A Major Food Company based in the Xibei Region of China.
COFCO TUHNE
COFCO TUHNE is engaged in domestic chinese and international sugar production, imports, refining, sales & trade, warehouse & logistics, and tomato products manufacturing. In terms of imports and refining, COFCO Sugar’s import volume accounts for about 50% of China’s total sugar import volume. With 1.5 million tons of refining capacity at the port, COFCO sugar’s oversea sugar resources are well situated for the domestic market.
http://www.cofco.com/en/BrandProduct/COFCOTunhe/
Dong Feng Autos
Dong Feng Autos is one of China’s Big Three Automakers.
https://en.wikipedia.org/wiki/Dongfeng_Motor_Corporation
Giant Interactive
Giant Interactive is one of the largest online game developers and operators in China.
https://en.wikipedia.org/wiki/Giant_Interactive
Beifa Stationary
Beifa Stationary is the #1 Stationary Company in China, and one of the top 8 in the world.
http://www.beifa.com/en/about.php?gid=0
Working with our China Strategic Partner, Uniquantum Investment Ltd, GSME provides services to North American Consumer Product Companies Seeking to do Business with China which include:
Under Certain Conditions Joint Venture Arrangements May be Possible.
These Services can also be Provided for the North American Market for Certain Products and Market Segments.
Working with Uniquantum Investment Ltd, GSME can also provide Services, Support, and Assistance to various levels of Government (Federal/National, State/Provincial, Municipal/City and First Nations) for Consumer Product Sales and Investment Initiatives with China.
What are Chinese Consumers like: What are They Looking For: And What Opportunities Exist for Foreign Consumer Product Suppliers?
China is the World’s Greatest Consumer Product Growth Market.
What are leading independent sources of expertise on the Chinese Consumer Product Market saying about China’s Future as a Consumer Product Market?
From Mckinsey and Company’s Report on” Why Chinese Consumers Will Continue to Surprise the World”
“China’s consumption has been growing faster than just about any other country’s in absolute terms.”
“The number you really want to keep in mind is household income. You can’t have consumption without income. And here’s where it gets really awesome. China’s household income is huge. It is now likely above $5 trillion a year.”
From the World Economic Forum:
“China’s consumption growth is tracing a staggering trajectory. China’s consumer economy is projected to expand by about half, to $6.5 trillion, by 2020—even if annual real GDP growth cools to 5.5%, below the official target. The incremental growth of $2.3 trillion alone over the next five years would be comparable to adding a consumer market 1.3 times larger than that of today’s Germany or UK.”
From China Business Review:
“Discretionary spending is buying the stuff you like but don’t need. Or you only sort of need. And, fortunately, people seem to have an endless appetite for everything from entertainment to skiing to caffe lattes. Chinese citizens are now moving beyond being able to only afford the basics of life, and their discretionary spending is taking off. Growth in spending on annual discretionary categories in China is forecast to exceed 7 percent between 2010 and 2020, and growth of 6 to 7 percent annually is expected in a second category of “seminecessities.” Both of these categories are growing faster than spending on actual necessities, which are expected to grow around 5 percent a year.”
From China Business Review:
“Chinese consumers demonstrate different shopping patterns depending on their wealth, age, and location. Though many Chinese consumers demand less expensive products, but a significant proportion is willing to pay a premium for higher quality. The biggest change in Chinese consumer behavior comes from the young generation’s rising wealth and increasingly Westernized lifestyle. As time goes on, the demand for higher-quality products, particularly among younger generations, will accelerate and present huge opportunities for foreign brands.
“Chinese consumers generally favor foreign brands. Product safety incidents and lax government supervision have scared Chinese consumers away from certain domestic products. Consumers will often pay a premium for foreign brands to ensure quality, particularly for important items such as infant formula. Foreign companies should devote resources to ensure Chinese consumers know their products’ true origin.”
“Pricing is a sensitive issue. Pricing a foreign brand in China can be tricky. On one hand, Chinese shoppers believe the higher the price, the better the quality or the higher the status. If a foreign brand is priced lower than a local one, shoppers may suspect that it has defects. On the other hand, the premium Chinese consumers are willing to pay varies by product category and by consumer groups. For example, Planet Retail finds that young shoppers are willing to pay double for foreign-branded infant formula or five to seven times more for foreign bottled mineral water, but older consumers are not. Most modern retailers in China implement a high-low pricing policy. To create a low price image, hypermarkets and supermarkets price frequently purchased products low to match and compete against rivals while charging a premium on impulse purchases and other price-insensitive products.”
What is the Situation with Respect to China’s Food and Beverage Consumer Product Market?
China is the World’s Leading Food and Beverage Market
China continues to be the world’s largest consumer market for Food and Beverage products, after surpassing the United States in 2011. This makes the Chinese market increasingly appealing for foreign brands, especially as Chinese consumer behaviour shifts.
Despite a fragmented distribution infrastructure and growing local competition, opportunities for North American companies to sell their products in China are going to grow further.
Growth of imported Food and Beverage Products is driven by rising disposable incomes, limited arable land, water scarcity issues, urbanisation, an improving logistics system, growing concerns for food safety, as well as a growing taste for foreign foodstuffs.
GSME Services and Support to North American Companies Seeking to Sell Their Consumer Products into China or Develop Consumer Product Businesses with China
Because of the particular capabilities which we have at our disposal through our China partner (Uniquantum Investment Ltd.), and because of the tremendous market opportunity that China’s consumer product market represents, a major focus of GSME activities is to assist and support North American Companies to be able to sell consumer products into China into the high opportunity market areas, and under the best arrangements.
GSME with its China partner Uniquantum Investment Ltd. which has considerable expertise, and can assist in raising, and providing financing to support consumer product companies – has specific capabilities for supporting the sale of consumer products being sold into China, and for supporting the development of businesses selling consumer products into China.
Uniquantum Investment Ltd has considerable expertise on, and direct relations with, and continuing ties to China’s consumer product sector and market.
Uniquantum Executives have held senior positions in China’s Consumer Product Sector and its Food and Beverage Sector – including one of the senior partners who is the former Chair and CEO of China’s largest Food and Beverage Company, COFCO – which also owns and operates one of China’s largest Food and Beverage E-commerce platforms as well as having retail store outlets throughout China. Members of Uniquantum Investment Ltd. Senior Management Group hold positions on a number of China’s major National Industry Associations for these sectors. This includes membership on China’s Green Foods Association, National Grains Associations and National Trademark Association. In fact, one of the Uniquantum Investment Ltd. Senior Partners has been the Chairman of China’s National Trademark Association.
From 1999 to 2017, the Senior Partners of Uniquantum Investment Ltd between them have sourced financing, and invested into, more than 30 leading Chinese companies. These corporate investments included a number in the consumer product and food and beverage product sectors:
COFCO Coca Cola (the China Joint Venture Company co-owned by COFCO and Coca Cola)
With COFCO owning 65% share and Coca-Cola 35% share, COFCO Coca-Cola Beverage Co., Ltd. (hereinafter referred to as COFCO Coca-Cola) is a partnership between COFCO and the Coca-Cola Company, and is the only Coca-Cola bottling group held by Chinese partner in China. As one of the fastest growing Coca-Cola bottling groups, COFCO Coca-Cola has successfully entered and kept its position in the world’s top 10 Coca-Coca bottlers just 10 years after its foundation.
COFCO Coca-Cola’s main business involves production, distribution, promotion, and sale of Coca-Cola products and Chinese brand products, providing consumers with soft drinks, fruit juices, fruit milks, water, coffee, tea and functional drinks etc., covering 8 large categories and 17 brands.
http://www.cofco.com/en/BrandProduct/COFCOCocaCola/
Greatwall Wine
Greatwall Wine, China’s largest Wine Enterprise, is COFCO’s Wine Production Company with wineries in China, and around the world.
COFCO Wine and Spirits, the specialized platform for COFCO’s liquor business, is the majority owner of Greatwall Wine. COFCO Wine and Spirits was the producer of the first bottled wine in the People’s Republic of China, and aims to become China’s most valuable international wine and spirits company with strong brand influence and abundant product mix.
Xibei North-West Food
A Major Food Company based in the Xibei Region of China.
COFCO TUHNE
COFCO TUHNE is engaged in domestic chinese and international sugar production, imports, refining, sales & trade, warehouse & logistics, and tomato products manufacturing. In terms of imports and refining, COFCO Sugar’s import volume accounts for about 50% of China’s total sugar import volume. With 1.5 million tons of refining capacity at the port, COFCO sugar’s oversea sugar resources are well situated for the domestic market.
http://www.cofco.com/en/BrandProduct/COFCOTunhe/
Dong Feng Autos
Dong Feng Autos is one of China’s Big Three Automakers.
https://en.wikipedia.org/wiki/Dongfeng_Motor_Corporation
Giant Interactive
Giant Interactive is one of the largest online game developers and operators in China.
https://en.wikipedia.org/wiki/Giant_Interactive
Beifa Stationary
Beifa Stationary is the #1 Stationary Company in China, and one of the top 8 in the world.
http://www.beifa.com/en/about.php?gid=0
Working with our China Strategic Partner, Uniquantum Investment Ltd, GSME provides services to North American Consumer Product Companies Seeking to do Business with China which include:
- Assistance and Support in Selling Consumer Products, Technologies, and Services to China;
- Advice, Guidance, and Support in Securing Joint Venture Consumer Product Development and Commercialization Projects with Chinese Companies and Institutions – including support and assistance in securing project financing;
- Assistance and Support in the Marketing and Promotion of your Consumer Product Company and its Products and Services to China;
- Advice, Guidance, and Support in Securing Business and Project Financing;
- Assistance in Developing Specific Consumer Products, Services, and Projects for the China Market that would offer Great Opportunity for China Market Penetration and Success;
- Ongoing Business Development and Operations Support in China;
- China Asset and Business Management Services;
- Support in Securing Necessary Business Partners and Necessary Business Support Services in China (including high level legal and accounting support services in China);
- Advice, Guidance, and Support for Securing Necessary Approvals in China;
- Assistance in China Negotiations;
- China Due Diligence Studies;
- Preliminary and Advanced Business Structuring;
- Investment Project Analysis and Planning;
- Training on China, and Doing Business in China, for Businesses and Institutions Engaging with China or Seeking to Engage with China. (Training Programs are tailored to the specific needs and circumstances of client companies and institutions);
- Preliminary and Advanced Business Plan and Market Plan Development for Securing and Improving Consumer Product Business with China;
- Advice and Guidance on Making Adjustments to Current Plans for Projects to make those Projects Attractive to Investment and Financing from Companies and Financial and Investment Institutions from China;
- Consumer Product Business and Project Feasibility Assessments;
- Preliminary and Advanced Evaluation, Assessment, and Identification of What Could be Achieved by your Consumer Product Company (given your company’s capabilities) (the opportunities present) and (how you could be positioned) from Doing Business with China;
- Review and Assessment of your Company’s Already Planned Projects to Determine if Financing or Investment from China is Possible and Identification of the Probable Terms and Conditions that could be expected;
- Identification of Potential New Business Opportunities and Projects Involving China or Chinese Business that could Attract Investment or Financing from China and Identification of the Probable Terms and Conditions that could be expected;
- Evaluation and Assessment of your Company’s or Institution’s Current Business Positioning, Operations and Strategies for Consumer Product Business with China (including current Marketing and Market Entry Strategies for China) to Determine if more Effective Approaches are Possible;
- Preliminary and Advanced Evaluation of the Opportunities and Requirements for your Consumer Products Business to Succeed in China;
- Consulting Services and Guidance on the Nature of the Opportunities in the Consumer Products Business in China and what they involve.
Under Certain Conditions Joint Venture Arrangements May be Possible.
These Services can also be Provided for the North American Market for Certain Products and Market Segments.
Working with Uniquantum Investment Ltd, GSME can also provide Services, Support, and Assistance to various levels of Government (Federal/National, State/Provincial, Municipal/City and First Nations) for Consumer Product Sales and Investment Initiatives with China.