Tapping into the Chinese Market

By Wang Fengjuan

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Tapping into the Chinese Market

By Wang Fengjuan

Thai dancers performing at the CFET

“The dried crocodile meat we process sells well among Chinese tourists， and given that China is a big market， we plan to find cooperative partners in China for our products，” beams Mr. Watcharin from Sing Buri Province， Thailand， at the 18th Cross-Straits Fair for Economy and Trade （CFET） in Fuzhou， capital of southeastern China's Fujian Province.

Mr. Watcharin is typical of CFET attendees hoping to tap into the lucrative Chinese market—a market in which Fuzhou carries special importance as a regional shipping hub. His products carry the title of “Starred OTOP Product” （One Tambon， One Product）， an honor bestowed by the Thai government for products developed by local entrepreneurs.

Members of the Thai business community made up a significant number of fair attendees. Acharavadee Chaisiripenpark， on her first visit to China， promoted her company's products—foods which use medicinal herbs to create a special flavor.

“China has a huge population， which means a huge market，” Chaisiripenpark said.“Healthy food sales are strong here. My Thai herbal products should have a bright future here in China.”

Thai products on display at this year's CFET included fragrant rice， durian， mangosteen， tapioca， rubber product， folk jewelry and handicrafts. Chinese interpreters hired by Thai attendees were seen busily introducing products to Chinese visitors， ranging from foodstuffs to massage apparatuses.

Thai Government Support

Before the opening of the Thailand Pavilion at the CFET， Wu Zhiyi， a consultant to Thailand's Foreign Minister and Chairman of the Asian-International Trade and Investment Association （AITIA）， and Chamaiporn Chuecharoen， Advisor to the Office of Small and Medium Enterprises Promotion of Thailand （OSMEP） on International Marketing， had already held talks with members of the Thai business community on matters concerning the exhibition.

A delegation of Thai businesspeople launched a promotional campaign called“Thailand Brands in China （Fuzhou）” at the Thailand Pavilion during the CFET. Headed by the OSMEP Director General and Acting Deputy Director General， the delegation was composed of entrepreneurs selected by the OSMEP， illustrating the importance the Thai government and the Thai business community have attached to the Chinese market.

The OSMEP， a department directly under the Office of the Prime Minister of Thailand，is responsible for coordinating and servicing small and medium-sized enterprises in Thailand. Aiming to help businesses explore the Chinese market， the OSMEP on March 28 this year held a forum themed “Building Brands and Marching Towards the Chinese Market”—which attracted more than 300 members of Thailand's business community. Representatives of the China Association of Small and Medium Enterprises （CASME）were invited to deliver keynote speeches on subjects introducing various unique features of the Chinese market.

In an attempt to improve trade matchmaking， Salinee Wangtal， the Director General of the OSMEP， plans to visit the Industrial and Commercial Bank of China （ICBC） and Bank of Communications （BOC） Fujian branches， as well as the headquarters of Yonghui Superstores， a Fuzhou-based supermarket chain. A planned Thai products boutique is set to launch on ICBC's e-commerce platform.

Most of the products on display at the CFET are typical， popular Thai products， such as dried fruits， massage equipment and cosmetics. Chaisiripenpark said that while the CFET gives her an opportunity to communicate with members of the Chinese business community，improving understanding of the Chinese market is of equal importance， which will allow her to adjust production accordingly.

The 2016 China and Thailand Trade Matchmaking Fair， jointly sponsored by the China Council for the Promotion of International Trade （CCPIT） Fuzhou Committee and the Asia International Trade and Investment Association （AITIA）， provides an opportunity for Thai factory owners to negotiate with Chinese buyers.

According to Chuecharoen， the AITIA will hold a number of other activities featuring “Thai Brands in China” in Chinese cities this year， aiming to help small and mediumThai enterprises explore the Chinese market.

A Galaxy of Thai Products

During the CFET this year， driven by the construction of the Fujian Pilot Free Trade Zone and preferential policies for cross-border e-commerce， the AITIA and the OSMEP worked together to set up a demonstration and distribution center for Thai products in the Linca International Commercial District of Fuzhou， setting a starting point for Thai products launching into the Chinese market.

The OSMEP hopes to formulate a pattern which can be duplicated on the basis of the successful exhibition and distribution of Thai products in Fuzhou， thus speeding up market exploration in northern and western China. The OSMEP will select a variety of products to promote in demonstration and distributioncenters， and will work to ensure adequate supply and customer satisfaction.

Visitors discuss cooperation at the CFET

Tajtai Tamangrakast， the Consul-General of the Royal Thai Consulate-General in Xiamen， said that the Thai government is willing to encourage enterprises， in particular small and medium-sized ones， to take part in the CFET. As the Fujian Pilot Free Trade Zone is under construction， the Thai government encourages exports to China in a hope to seize the opportunity presented in Fujian and introduce more and more Thai products to the Chinese market.

Wu Zhiyi said that the AIPIA， too， will organize events inviting Thai businesspeople to come to China to promote their products.The AIPIA will also work with demonstration centers for products and hold promotional activities to increase participation.

In recent years， economic and trade ties between China and Thailand have grown steadily. Bilateral trade volume increased a remarkable 2，800 times between 1975 and 2014 （from US$25 million to US$70 billion）. Bilateral product and service trade is also on the rise， becoming a part of people's everyday lives in both China and Thailand. The number of Chinese tourists traveling to Thailand has seen a sharp rise—there were fewer than 1 million such visitors in 2008 compared to more than 8 million in 2015. China has becomeThailand's largest source of tourists.

Fuzhou is the largest city in Fujian Province， as well as its capital. Situated along China's southeastern coast， Fuzhou has served as a vital port along the Maritime Silk Road for nearly 2，000 years. Since ancient times， the Fuzhou people have fostered close connections with Thais， and people who originated from Fujian Province make up the largest population of overseas Chinese inThailand.

“Thai Brands in China” and similar events will help meet the demand of consumers in Fuzhou and promote economic exchanges between Thailand and Fujian Province. Such activities will also provide platforms for small and medium Thai enterprises to explore the Chinese market under the favorable geographical and demographic conditions provided by Fuzhou.

Wu said that Fuzhou， as a coastal city，has enjoyed extremely strong economic development in recent years. As their desire for a higher quality of life grows， Fuzhou consumers are becoming increasingly interested in imported goods—which points to increasedThai product sales in Fujian Province.