South Africa
Western Cape
Sector
Over the years Wesgro has enjoyed a fruitful relationship with its Chinese partners and continues to do so by participating in major Asian conferences and exhibitions throughout the year. These events provide a platform for South African suppliers to showcase their products and immerse themselves in the Chinese culture, opening the doorway to trade and investment opportunities in Asia.
In September, Wesgro participated in the Investment and Trade Initiative (ITI) hosted by the Department of Trade and Industry (DTI) in the four cities of Hong Kong, Beijing, Shanghai and Xiamen. The ITI was part of the DTI's investment strategy to focus on China as a new high growth market. The objective was to promote South Africa as a trade and investment destination and create market penetration for South African value-added products and services in China. Armed with top quality South African products and the fortitude required to make an impact in the Chinese market, Wesgro, along with three South African suppliers, shared in the excitement and possibility at this widely attended event.
The intended outcome was to stimulate economic growth through increasing FDI into South Africa and the Western Cape. To this end Wesgro participated in multimedia interviews, Q&A sessions and one-on-one meetings with investors interested in infrastructure, agribusiness, renewable energy and information & communications technology (ICT).
As a result of this convention, Wesgro signed a letter of intent on a waste management investment. The three wine companies, namely Signature Brands, Ridder’s Creek and Koopmanskloof, were given the opportunity to market their products and network with key players in the industry. Due to these discussions one of Wesgro’s Chinese partners will lead an inward delegation to the Western Cape to further investigate the potential of an exporting venture with Signature Brands and other South African companies.
In conjunction with our outward missions, Wesgro also hosts inward missions and events to create the opportunity for international investors to engage with new suppliers on our home ground. This is particularly beneficial to suppliers who are not able to fund international exhibitions but are interested in tapping into the various foreign markets.
On 7 October Wesgro welcomed Mr. David Zhang, owner of Shanghai Capel Industry Co., Ltd. to the Western Cape for the second time this year. According to Zhang growing interest in South African food and beverages products had necessitated his visit to Cape Town once again.
During his short period of residence in South Africa in the mid-1990’s, Zhang made many important discoveries about the superb quality of South African food and beverages, particularly fruit juice. He returned to China to establish his own fruit juice factory using imported fruit juice concentrate from South Africa. In 2008, his fruit juice was recognised for its high quality and his company was subsequently appointed as one of the beverage suppliers for the Olympic Games.
This seasoned traveler shared his advice with eager listeners, highlighting the shift in consumer tendencies and noting that in recent years the Chinese population had been enjoying a higher quality of life, and a larger disposable income. He advised suppliers to factor this change into their marketing strategies citing the current period as the prime time for market penetration.
Zhang named three exhibitions, SIAL, FHC and Walmart YBM as the most important events in the annual calendar for suppliers wishing to showcase or market their products in China.
He urged listeners to build strategic partnerships with Chinese counterparts as opposed to trading relationships which would likely fade overtime. He cautioned participants to take their time when building these relationships and to acquire an understanding of the Chinese culture before attempting to enter the market. South African companies who sought assistance during troubled times were unable to overcome these obstacles without the aid of a foreign partner, which would inevitably lead to their demise According to Zhang many companies had failed because the trade relationship was not a lasting one, making this one of the most important elements to trading successfully in foreign markets.
The seminar afforded potential suppliers the opportunity to begin a long-term partnership with one of the key players in the Chinese food and beverages industry which would ultimately open doors into this thriving market.
Through our partnership with Zhang and the representatives of the Department of Trade and Industry in China, Wesgro has helped Bokomo export to Walmart stores in China.
This is just one of the many successes that have originated from this invaluable affiliation. Wesgro continues to work closely with him to assist other South African food and beverage companies wishing to enter the Chinese market.
For more information about Wesgro contact:
Judith Coetzee
Tel: +27 21 487 8660
Email: judith@wesgro.co.za
