Economy

Zhejiang businesses ride on Expo for success

By JIN ZHU (China Daily)
Updated: 2010-05-01 09:00

HANGZHOU - Expo 2010 Shanghai comes at a time when the global economy is recovering.

For merchants of Zhejiang province who are famous for their trade, the business opportunities are too good to miss.

To that effect, a 6,000-square-meter pavilion has been built in the Puxi section of the Expo Garden, with a theme of presenting the boundless vitality of Chinese private enterprises.

As the first stand-alone pavilion for private enterprises in more than 150 years of World Expo history, the building was mainly funded by 16 well-known private enterprises in Zhejiang such as Internet-based business Alibaba.com.cn and Shanghai Fosun High Technology.

Guo Guangchang, chairman of the board of Fosun, signed a contract with the Shanghai World Expo Coordination Bureau to build the pavilion for Chinese private businesses last May.

"Actually, Fosun played the role of aggregator to invite many more Chinese companies to join forces to fund and build the pavilion. So far, it has attracted participants from various kinds of industries, such as computer hardware, IT, movies, electronics, mobile phones, home furnishings and clothing," Guo said.

Up to 320 million yuan ($47 million) have been invested to build the pavilion, which is aimed at being the best and most popular among the 200 stand-alone pavilions of the Expo.

For most investors, such a large investment is not only a pavilion that looks good.

"Chinese products can be found everywhere in the world now. However, they are plagued by the label of 'low cost', especially for products made by private enterprises. The task of promoting brands to win good reputation is imminent," Guo said.

"Presenting quality products at the World Expo will be a great opportunity," he said.

Enhancing the popularity and reputation of Chinese products in a global event like the Expo is a concept Zhejiang merchants learnt from the Beijing Olympics in 2008.

Still, since the global financial crisis, many enterprises in Zhejiang have received much fewer orders from overseas markets. Promoting them more in the domestic market has become a priority.

"I had originally planned to visit London to study the business opportunities for the 2012 Olympics. But the company has turned its focus on the Expo and the Asian Games this year," said Zhang Huanqiu, a local merchant.

Funds and infrastructure supported by Zhejiang enterprises can be seen everywhere at the World Expo Garden in Shanghai, such as subways and pavilions.

A garden company from Tengtou Village, an example of rural-ecological building, is also responsible for the green work at the World Expo Garden.

"As many as 70 million visitors will come to the Expo, even if only 1 percent of them are attracted to visit our village, it will be a great opportunity for developing local tourism," said Zhou Quan, vice-director of the Office of Tengtou Village.

Chen Jun, deputy president of the Zhejiang Chamber of Commerce in Beijing, said: "Chinese private enterprises have shown increasing enthusiasm for the Expo in recent years. They believe the event will benefit their enterprises even in its aftermath."

Beifa Group, a company involved in the production and sales of writing instruments in Zhejiang, is now an exclusive supplier of the "Haibao pen", one of the souvenirs of the Expo.

"The proportion of export sales is expected to increase from the current 10 percent to 30 percent, as more foreign sellers will know about our products through the Expo," said Qiu Zhiming, president of Beifa Group.

CHINA DAILY