Happy New Year!
One of my new year’s resolutions is to have the discipline to write regularly and share my thoughts about doing business in China with my contacts on Linkedin. I am delighted that many contacts of mine have offered to help provide their business knowledge and insights via this series of interviews.
This week, I am absolutely thrilled to interview Stephen Phillips, Chief Executive of China Britain Business Council (CBBC).
BH: Hi Stephen, thank you for agreeing to this interview and share with us what are the opportunities for UK Businesses coming from in 2015. First of all, for those who don’t know about CBBC, what does the organisation do?
SP: CBBC is the UK’s leading membership organisation that has helped British companies do business with their Chinese counterparts for 60 years. We have 10 offices in the UK and 13 across China, providing access to information, advice and decision-makers.
BH: We hear a lot in the news that the Chinese economy is slowing, so what is the Chinese market like for UK businesses in 2015? Is it still a good time to enter the market?
SP: Yes!
The Chinese economy is changing shape. Chinese consumers are more sophisticated, as are Chinese businesses. This means that both increasingly want the high-quality products and services that the UK has to offer – whether at home or abroad.
At the same time, economic development in China is spreading inland, opening new opportunities in central and western areas. Indeed some of the fastest growing cities are now in these areas and also often offer a less competitive environment.
To state the obvious, China is a large and geographically diverse country. It is important to do your homework to ensure the right focus. In other words, get granular!
BH: So what are the key opportunity areas/sectors that is available to UK companies?
SP: As I alluded to already, the first point I would make is China is not one single market. Much like the US or EU, it is a continental market. Each province is more or less like a European country and tastes and cultures vary considerably across the country.
I would highlight 4 major drivers of the opportunity that we see:
1. Chinese Consumer.
A more affluent and more sophisticated consumer has rapidly emerged. And for many businesses e-commerce is revolutionising how they can be reached within China. And the Chinese tourist has fast-become a major force in outbound travel and overseas retail.
2. Liveable Cities.
The rapid urbanisation of China continues apace and brings with it opportunities in the built environment, as well as opportunities to meet the challenges that rapid growth has brought: envirotech, greentech, energy saving etc. At the same time, an ageing population and healthcare reform means exciting new opportunities in a range of healthcare areas.
3. Chinese Outbound Investment.
Chinese companies are fast-internationalising. As they do so they need the support of a wide range of service providers from product design, through to marketing and branding and, of course, financial and professional services.
Furthermore, partnering with Chinese companies may offer attractive opportunities for some UK businesses in ventures that play to respective strengths, for instance in Africa, the Middle East and the Commonwealth.
4. Education.
This continues to be a tremendous opportunity for the UK from schools to universities, from vocational to professional education and qualifications. And academic-business research collaborations offer exciting new potential too.
Inevitably in a country so large and diverse there are opportunities in many, many areas. If you don’t know where to start, I suggest you have a chat with one of the CBBC team.
BH: These are truly amazing drivers of opportunity but many businesses I spoke to think that China is not for them because they are too small. Do you think very small companies can benefit from the Chinese market and how?
SP: Companies of all shapes and sizes can be successful in China, but it can be challenging. Patience, persistence and passion are necessary attributes. Choosing where to focus efforts is also important. Regional cities might make more sense for smaller companies as competition tends to be less intense than in China’s biggest cities.
Of course SMEs face time, money and resource constraints. Planning how to approach China is therefore very important. It is a market that requires commitment. So being well-prepared and using time to best effect is really important. Around 2/3 of the companies we work with at CBBC are SMEs, including micro businesses. So you will find a team that understands the day-to-day challenges you face.
BH: How can companies find out about these opportunities from China?
SP: One of the easiest ways is to engage with CBBC. CBBC offers a range of practical services designed to help companies enter or grow their China-related business, whether they are new to China or looking to expand an existing business.
CBBC works with companies of all sizes and in all sectors: and our aim is simple – to help companies win business. So whether you need market research, to identify a partner or understand regulations CBBC can help. CBBC also has an extensive events programme both in the UK and China on different sectors, regions/cities and key business issues.
The CBBC website – www.cbbc.org – has lots of useful information and also lists a wide range of business opportunities by sector.
I would also recommend meeting one of the CBBC team to discuss how we might be able to help in more detail. That help can range from detailed, tailored research and visit programmes, to identifying partners and to participating in a wide range of events, all designed to help companies grasp the China opportunity.
China is the world’s second largest economy, some see this as a threat whilst other see the country a place with numerous business opportunities. To me, ‘speed’ and ‘scale’ are two features that make China a very interesting place to do business in. When you’ve got the right idea and product (and of course the right support), the speed of creating a success is incredible and with a population of 1.3 billion, there is definitely the potential to scale your success to mega success.
The next interview will be with two incredible Chinese business women from Manchester – watch this space!
You can follow me on twitter @benny_Hui
Special thanks to Stephen Phillips @CBBC_Stephen of @ChinaBritain for his time and insight.
Happy New Year!
One of my new year’s resolutions is to have the discipline to write regularly and share my thoughts about doing business in China with my contacts on Linkedin. I am delighted that many contacts of mine have offered to help provide their business knowledge and insights via this series of interviews.
This week, I am absolutely thrilled to interview Stephen Phillips, Chief Executive of China Britain Business Council (CBBC).
BH: Hi Stephen, thank you for agreeing to this interview and share with us what are the opportunities for UK Businesses coming from in 2015. First of all, for those who don’t know about CBBC, what does the organisation do?
SP: CBBC is the UK’s leading membership organisation that has helped British companies do business with their Chinese counterparts for 60 years. We have 10 offices in the UK and 13 across China, providing access to information, advice and decision-makers.
BH: We hear a lot in the news that the Chinese economy is slowing, so what is the Chinese market like for UK businesses in 2015? Is it still a good time to enter the market?
SP: Yes!
The Chinese economy is changing shape. Chinese consumers are more sophisticated, as are Chinese businesses. This means that both increasingly want the high-quality products and services that the UK has to offer – whether at home or abroad.
At the same time, economic development in China is spreading inland, opening new opportunities in central and western areas. Indeed some of the fastest growing cities are now in these areas and also often offer a less competitive environment.
To state the obvious, China is a large and geographically diverse country. It is important to do your homework to ensure the right focus. In other words, get granular!
BH: So what are the key opportunity areas/sectors that is available to UK companies?
SP: As I alluded to already, the first point I would make is China is not one single market. Much like the US or EU, it is a continental market. Each province is more or less like a European country and tastes and cultures vary considerably across the country.
I would highlight 4 major drivers of the opportunity that we see:
1. Chinese Consumer.
A more affluent and more sophisticated consumer has rapidly emerged. And for many businesses e-commerce is revolutionising how they can be reached within China. And the Chinese tourist has fast-become a major force in outbound travel and overseas retail.
2. Liveable Cities.
The rapid urbanisation of China continues apace and brings with it opportunities in the built environment, as well as opportunities to meet the challenges that rapid growth has brought: envirotech, greentech, energy saving etc. At the same time, an ageing population and healthcare reform means exciting new opportunities in a range of healthcare areas.
3. Chinese Outbound Investment.
Chinese companies are fast-internationalising. As they do so they need the support of a wide range of service providers from product design, through to marketing and branding and, of course, financial and professional services.
Furthermore, partnering with Chinese companies may offer attractive opportunities for some UK businesses in ventures that play to respective strengths, for instance in Africa, the Middle East and the Commonwealth.
4. Education.
This continues to be a tremendous opportunity for the UK from schools to universities, from vocational to professional education and qualifications. And academic-business research collaborations offer exciting new potential too.
Inevitably in a country so large and diverse there are opportunities in many, many areas. If you don’t know where to start, I suggest you have a chat with one of the CBBC team.
BH: These are truly amazing drivers of opportunity but many businesses I spoke to think that China is not for them because they are too small. Do you think very small companies can benefit from the Chinese market and how?
SP: Companies of all shapes and sizes can be successful in China, but it can be challenging. Patience, persistence and passion are necessary attributes. Choosing where to focus efforts is also important. Regional cities might make more sense for smaller companies as competition tends to be less intense than in China’s biggest cities.
Of course SMEs face time, money and resource constraints. Planning how to approach China is therefore very important. It is a market that requires commitment. So being well-prepared and using time to best effect is really important. Around 2/3 of the companies we work with at CBBC are SMEs, including micro businesses. So you will find a team that understands the day-to-day challenges you face.
BH: How can companies find out about these opportunities from China?
SP: One of the easiest ways is to engage with CBBC. CBBC offers a range of practical services designed to help companies enter or grow their China-related business, whether they are new to China or looking to expand an existing business.
CBBC works with companies of all sizes and in all sectors: and our aim is simple – to help companies win business. So whether you need market research, to identify a partner or understand regulations CBBC can help. CBBC also has an extensive events programme both in the UK and China on different sectors, regions/cities and key business issues.
The CBBC website – www.cbbc.org – has lots of useful information and also lists a wide range of business opportunities by sector.
I would also recommend meeting one of the CBBC team to discuss how we might be able to help in more detail. That help can range from detailed, tailored research and visit programmes, to identifying partners and to participating in a wide range of events, all designed to help companies grasp the China opportunity.
China is the world’s second largest economy, some see this as a threat whilst other see the country a place with numerous business opportunities. To me, ‘speed’ and ‘scale’ are two features that make China a very interesting place to do business in. When you’ve got the right idea and product (and of course the right support), the speed of creating a success is incredible and with a population of 1.3 billion, there is definitely the potential to scale your success to mega success.
The next interview will be with two incredible Chinese business women from Manchester – watch this space!
You can follow me on twitter @benny_Hui
Special thanks to Stephen Phillips @CBBC_Stephen of @ChinaBritain for his time and insight.