An exciting ride against the tide

Some Chinese who had success overseas now try to replicate their feat at home

As Chinese companies fall over themselves to go global by investing or selling their goods overseas, a few have decided it is better to go against the flow.

The three-day Children-Baby-Maternity Industry Expo in Shanghai last month was heavily populated with exhibitors from overseas keen to gain a foothold in the Chinese market. But in one overseas booth, the great majority of which were run by foreigners, two faces stood out - because they were Chinese.

"We started the brand Koo-di in Britain 12 years ago and brought it back to China in 2010," said Du Jin'e, sales manager of the China branch of Weybury Hildreth Ltd.

Thirty years ago, the company began a trade in baby strollers, helping European companies find manufacturers in China.

"As we had industry experience, we decided to create our own brand, Koo-di, in England, focusing on pack-it bags, baby carriers and other baby-care products," Du said.

The products are designed in Britain but produced in China. Du said she was unable to provide sales figures for the brands overseas, but the company sends four containers of goods to Britain every month, with a total value of $200,000 (163,000 euros).

"In 2010, the company had a turnover of 300,000 yuan ($47,000, 38,000 euros) in China," Du said, but growth since then has been mixed at best.

Du said this was her company's third year at the expo, and the increased foreign presence underlined the huge potential many see.

"There is a good opportunity for us if we really care about the quality of our products, because young mothers are paying more attention to the function and quality of baby-care products."

The company is now concentrating on promoting the brand and cultivating customers, rather than on expanding, she said.

"We are doing advertisements in eight maternity magazines and trying to find more people to work with us through the fair."

Like Du, Jin Linyong, general manager of the Italian baby goods retailer Angel Baby SRL, is looking for fresh opportunities in his homeland.

Jin, who calls himself Giovanni Jin in Italy, said he has opened three chain stores in Milan since 2000, the largest one covering 800 square meters.

Though the company's annual turnover has reached 40 million yuan, a fivefold increase over 12 years, sales have been marking time in recent years, particularly since the financial crisis set in, he said.

"The Italian baby goods market is nearly 50 years old. There is little space for growth," Jin said.

He opened an office in Hangzhou, Zhejiang province, in 2009, and his Hangzhou Bimbo Trade Co Ltd is now the sole agent for six Italian brands, including Baby Coccole, Rosenfeld, and Isomar, picked from the 150 brands he is working with in Europe.

"Among the six brands, four of them are more than 100 years old, and I hope more Chinese babies can enjoy the quality of Italian products," he said.

Jin said the advantage for him of doing business in China is that he can tailor European product portfolios to the needs of Chinese customers.

He went to Italy 18 years ago and opened his first store six years later, after treading the well-worn path of many overseas Chinese: running a restaurant.

"When I had my first child I began to focus on baby-care goods."

In Italy he works directly with manufacturers. In China, he has to adjust the marketing strategy because it is a much bigger marketplace.

"We have worked with more than 30 provincial agents since we made the first deal in October 2010, and our products are sold in more than 500 retail stores now."

But it will take time for his store and unknown Italian brands to gain recognition, he said.

"Fortunately, the market is very receptive to fresh products at the moment. And the way to succeed is to persist with quality and service."

yaojing@chinadaily.com.cn

(China Daily 08/10/2012 page13)