The Province of North Brabant, together with the BOM, has built a strong reputation and a large regional network in the Chinese province of Jiangsu over 25 years. This is all due to the strong economy, high-tech expertise, and a widely supported innovation strategy. It is no coincidence that over 30 companies from Brabant, including NXP, VDL ETG, ProDrive, Sioux, and Philips, have already settled in Jiangsu with their sales offices, production facilities, or logistics operations.
For machine manufacturer AAE, it's not quite there yet, but perhaps that's why the trip was valuable. “The trip to Jiangsu was perfect for us to get a feeling and experience regarding the Chinese market,” says new business manager Ruud Schenning. “We have Chinese customers, but these contacts arise via our European or American customers. So we are not really active in the Chinese market yet. Through the trip, I gained a better understanding of the opportunities and potential hurdles for our two product lines AAE and GRAUEL.”
Schenning has already shared his experiences within the organization. “We are now looking at whether we will create a follow-up plan. I am very satisfied with the results. The things I read in advance, I have now been able to experience live. By also talking to people in the Netherlands, I am getting an increasingly clearer picture of the situation and opportunities for AAE.”
For Renske Natuurlijke Diervoeding, the journey was primarily important for finding a new distribution partner. The company has taken an important step in this, says director Frank van Zutphen. “We are currently in discussions with a potential distribution partner.” Additionally, there was an unexpected extra result, he says: “The expansion of our Dutch network, thanks to the other participants, was also interesting for us.”
Entry with local governments
The China trip was also profitable for Protix, says business developer Bram Bervoets. “We are exploring the possibilities to add value to our technology and knowledge in China by converting food waste, as feed for insects, into sustainably produced proteins. Our goal was to discuss this with local governments and businesses. Additionally, we wanted to learn more about doing business in China to better assess where our opportunities lie and how our strategy might look.”
For all three parties involved, BOM's role was essential in reaching the goals. "Without BOM we wouldn't have been able to achieve this," says Frank van Zutphen. "The matchmaking day was the most useful for us in that regard.” Bram Bervoets agrees: “BOM has connected us with a number of interesting parties. BOM also has good contacts with local governments. In the Chinese government, it adds a lot if you get in touch with them via the Dutch government. Then you show that the government stands behind you. This is especially valuable in China.” Ruud Schenning sees an added benefit: “By joining the trip, you also connect with many Dutch contacts who are dealing with the same issues. This helps tremendously in the formation of ideas. I found visiting companies very useful.”
Friendship relationship
Eelko Brinkhoff, director of BOM Foreign Investments and International Trade, can only agree: “We look back on the Brabant trip to Jiangsu with a big smile. It was a very intensive week with activities in the field of trade, foreign investments, and innovation. I hope that the Brabant companies and knowledge institutions will benefit from all the experiences and new contacts in doing business with and in China. I also hope that more Chinese companies will find their way to Europe, preferably via Brabant. I think this mission is an excellent example of how a friendship relationship between two provinces can be of added value for entrepreneurs in exploring market opportunities, finding new business partners, and building business in China.”
Tips
A few tips for other Dutch companies considering to become active in China are also shared by the three participants: “It starts with talking to other entrepreneurs who have a similar mission,” says Ruud Schenning. “Then, read up, and afterwards go there to validate your assumptions.”
This good preparation is also essential for Frank van Zutphen. “Get informed by institutions that have experience in the Chinese market. Additionally, be prepared for a long haul and setbacks.”
Bram Bervoets agrees: “It is useful to think about your strategy beforehand so you can test it in China. BOM can then help more specifically to arrange the right meetings. Also, keep in mind that follow-up takes a lot of time. Almost everything goes differently than we are used to; there are different expectations, different priorities, and the pace in China is really different.”