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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

Shopping the Danish Lifestyle Through a WeChat Shop

Background

In May 2017, Rasmus Gregersen, CEO of Nihao CPH contacted the EU SME Centre to bring its business into the Chinese market. The company runs a Danish lifestyle online media that also offers a wide variety of Scandinavian products for the Chinese consumers in the higher segment and it is rapidly expanding with more brands within kids, health and beauty categories.

After running its online magazine for a couple of years, Mr Gregersen decided to start selling its products in China by opening a WeChat shop.  The online shop would have been a stand-alone shop and the Nihao CEO wanted to operate it via cross-border on Chinese Wechat. 

What We Did

The Centre’s Business Development Advisor Rafael Jimenez researched his case and pointed out that there are lots of complexities in such a scheme. He said: "First, there is to understand the treatment of payments, tax and duties and of the cross-border operations, which might not always be immediate." Additionally, the company also aimed at learning how to outline a strategy that easily migrates later to a bonded warehouse at the Free Trade Zone in Shanghai. 

Success 

Questions and answers did happen, and despite the inherent difficulties about a business-to-consumer trade mode that was largely unknown in China at that time, Nihao CPH put in operation its WeChat shop a few weeks later, in July 2017.

To learn more about Nihao CPH’s experience in China, read the full case study here.

We quickly found out that cross-border e-commerce is not as easy as it sounds. Denmark’s regular post services had little experience with this type of logistics and also figuring out the procedures for taxes involved with cross border e-commerce deserve a fair bit of attention before getting into business. Despite much self-study, NI HAO CPH’s incubator in Denmark owes most of its current knowledge on e-commerce in China to the EU SME Centre’s business development team services and advices.
Rasmus Gregersen, CEO NIHAO CPH
 
-Mr Gregersen – CEO NIHAO CPHOn May 2017 , Rasmus Gregersen  CEO of Nihao CPH contacted the EU SME Centre to bring its business into the Chinese market.  
After running its online magazine for a couple of years, Mr. Gregersen decided to start selling its products in China by opening a WeChat shop. 
The online shop would have been a stand-alone shop and the Nihao CEO wanted to operate it via cross-border on Chinese Wechat. 
The Centre’s Business Development Advisor Rafael Jimenez researched his case and pointed out that 
There are lots of complexities in such a scheme. First, there is to understand the treatment of payments, tax and duties and of the cross-border operations, which might not always be immediate. Additionally, the company also aimed at learning how to outline a strategy that easily migrates later to a bonded warehouse at the Free Trade Zone in Shanghai. 
Questions and answers did happen, and despite the inherent difficulties about a business-to-consumer trade mode that was largely unknown in China at that time, Nihao CPH put in operation its WeChat shop a few weeks later, in July 2017.
To learn more about Nihao CPH’s experience in China, read the full case study here.
“We quickly found out that cross-border e-commerce is not as easy as it sounds. Denmark’s regular post services had little experience with this type of logistics and also figuring out the procedures for taxes involved with cross border e-commerce deserve a fair bit of attention before getting into business. Despite much self-study, NI HAO CPH’s incubator in Denmark owes most of its current knowledge on e-commerce in China to the EU SME Centre’s business development team services and advices”.
-Mr Gregersen – CEO NIHAO CPH

Visit Nihao Cph Website

Slovenian Tech Dynamises China's New Energy Vehicle Market

Background

Elaphe Propulsion Technologies Ltd.is a Slovenian company and a global leader in development and production of in-wheel and direct drive propulsion systems for vehicles. In October 2015 Blaz Stefe, today general manager of APG-Elaphe Propulsion Technologies, Co. Ltd, contacted the EU SME Centre in Beijing.  Mr Stefe wanted to understand better several aspects of entering the Chinese market, local legislation, business development and partnering with Chinese companies. 

What We Did

Mr Stefe met at the EU SME Centre in Beijing Ms Hyklova, Legal Advisor, and Mr Jimenez, Business Advisor. He received advice on legal and procedural aspects of creating a Joint Venture (JV), was recommended to pay attention along with his lawyers to some of clauses, location implications for the JV were discussed, while the EU SME Centre also shared information about the New Energy Vehicle (NEV) market opportunities in China, which in 2015 were not that clear as they are today.

Success

The Chinese investor partnered finally with Elaphe and a JV company was established in August 2016, which is today leader in the production of in-wheel motors for passenger and heavy duty vehicles. Operation of production line started in January 2018 in Hangzhou.  

"We appreciate the quality information available at the EU SME Centre, and certainly we will accept the proposal of the EU SME Centre to draft a Case Study so our experience in China can be shared with others for the benefit of EU SMEs."
-Blaz Stefe, General Manager of APG- Elaphe Propulsion Technologies, Co. Ltd.

Visit Elaphe’s Website

Exporting Greek Soft Drinks to China

Green Cola is a Greek soft drink brand that produces cola products with natural ingredients, containing fewer calories while maintaining the cola taste.

In the late 2014, Green Cola was introduced to the Chinese food and beverage market with the support from the importing company Fortune Park (Beijing) Trading Co. During the next few months, Green Cola conducted a series of market research on Chinese consumers’ preferences in soft drinks and found out that the country has a growing number of consumers seeking healthier and fashionable products with great flavors from other countries.  In 2015, Green Cola began to export a few containers to different ports in China and to sell directly in the imported commodity centers mostly located within Free Trade Zone areas and high-end super markets.

In November 2015, Green Cola exhibited for the first time at the World of Food Fair in Beijing within the Centre’s European SME Pavilion. The World of Food is one of the largest international food & beverage trade fairs in Northern China.

During the exhibition, the Centre introduced Green Cola to Emmanuel Stantzos, Minister Plenipotentiary for Economic and Commercial Affaires at the Greek Embassy in Beijing, and arranged a series of individual business meetings with Chinese distributors, retailers and buyers.

“Attending the exhibition and the Centre’s European SME Pavilion provided us with a good opportunity for the brand to get direct feedback from consumers in terms of flavor preference and price elasticity. It also helped us gain more valuable contacts and expand Green Cola’s sales channels in China”, said Mr. Jay Xu, Managing Director of Fortune Park Trading Co,.

Jay stressed that logistics is often the primary challenge for imported fast-moving consumer goods in China. In addition, the speed to market and fast delivery to consumers are the key to success.

 “There is no doubt that the China market is one of the most attractive for all prospective exporters. But it has to be approached with a long term perspective and with respect to the culture and to the consumer habits. For us, this means that it is significant to present a selling proposition that will bring an added value to the Chinese consumers. But no matter how good this proposition is, no exporter can succeed without the right associate from the China side”, said Antonis Terzis, Export Manager Green Cola Hellas S.A.    

The next step for Green Cola is to make the products available for more consumers by distributing through different sales channels. To achieve this, Green Cola is working to have the Chinese label printed directly on the bottle to comply with China’s new food labeling regulations. (Find further instructions for China’s food and beverage labelling requirements in the Centre’s Guideline.)
 

Visit Green Cola's website

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

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

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

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

Exploiting China’s High-end Anti-pollution Mask Market

Christopher Dobbing, a young entrepreneur from the United Kingdom, launched his anti-pollution mask business in China in 2013. As the Founder and CEO of Cambridge Mask Co, the company targets the high-end anti-pollution mask market. Now selling masks through a number of local hospitals, schools, corporations and retailers around the world, Chris has successfully diversified his distribution channels both online and offline. 

In his preparation to set up a company in China, Chris used the EU SME Centre’s consultation service to understand the company registration process and certifications needed to sell his masks on the China market. The Centre also provided him free temporary office space while he was looking for affordable offices in Beijing.

As to the challenges faced by European SMEs in China, Chris put recruiting and retaining staff as the most pressing one. Instead of having three underperforming staff, Chris suggested SMEs invest more in the most dedicated one.

The EU SME Centre was a valuable resource to help me accelerate my start up business selling anti-pollution face masks in China. Having a professional looking space to hold meetings in central Beijing is great, and the legal advice and information guides have proved to be really useful at this key point in setting up here. I would highly recommend the Centre to any small business looking to get started here.

-Christopher Dobbing, Founder and CEO, Cambridge Mask Co

Visit Cambridge Mask Co

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 

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