Porcelain made in central China's
Jiangxi
Province is famous all over the world. However, this particular
porcelain ware was cold-shouldered when it was exhibited in South
Africa over the past year. Products valued at more than 6 million
yuan received little attention, so that the 32 participating
companies in their exhibition could not even recover their capital
outlay. Recently reporters from Xinhua News Agency and the
People's Daily interviewed the Jingdezhen people who were
trying to sell the porcelain in South Africa.
The Chinese porcelain exhibition hall is located at the north
entrance of a Johannesburg shopping center. When reporters arrived,
they found the center's main entrance was very busy, with a
constant stream of cars and buses dropping off visitors. However,
the Jingdezhen porcelain exhibition hall had no visitors at all. In
the space of less than half a year, three groups of Chinese
participants had suffered a similar experience.
Jingdezhen porcelain is always described "as white as jade, as
bright as a mirror, as thin as paper, and mild in sound." So how
could such famous ware suffer such an unfortunate fate? The key
reason is that companies rushed to South Africa blindly, trusted
intermediaries and didn't carry out any advance market
investigation or study. Before coming to South Africa,
intermediaries gave an exaggerated account of the market situation
in South Africa, saying that the price of Jingdezhen porcelain
exhibited there would rise sharply, and comparing it positively
with the country's own famous assets of gold and diamonds.
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Speaking of their participation in the exhibition, Chinese
companies could not explain the matter in a few words. "We were
told that South Africa is the economic center of Africa with strong
purchasing power. Later when we came here, we came to realize that
whites here know little about Chinese culture, while most black
people are poor and unwilling to buy expensive porcelain. We were
also told that people of Chinese origin in South Africa numbered
200,000-500,000, but the actual number is only 100,000, most of
whom are newcomers who are doing pioneering work, living in rented
houses and with little or no purchasing power."
"We reported the situation back home and suggested the Chinese
embassy in South Africa not approve domestic businesses to come to
sell porcelain in South Africa. However, the various domestic
businesses didn't believe us," complained one Chinese businessman
in South Africa. "The companies who enter the South African market
without carrying out an investigation and market study in advance
are bound to suffer big losses," said Tang Qingheng, Chinese
Consulate General in Johannesburg.
Zhong Lianggui, a leading official who came to deal with the
matter from Jingdezhen City, pointed out that Jingdezhen porcelain
exhibited abroad were supposed to be provided with proper
authentication documentation, plus instructions from the China Council
for the Promotion of International Trade and permits given by
the Porcelain Association of Jingdezhen City. However, domestic
porcelain exhibitors in South Africa had not gone through the
relevant formalities and thus participated in an illegal
activity.
This lesson in failure by Jingdezhen porcelain is a reminder to
business people of the need to have correct understanding of the
South African market and commercial opportunities available across
the African continent. Africa is still the poorest and most
backward continent in the world. Its market economy is not
developed yet and its market capacity is limited. Chinese people
going there on business must have a definite idea of what they are
doing and have a better understanding of its economic situation and
cultural background.
China established
diplomatic relations with South Africa on January 1, 1998.
Since then bilateral economic and trade activities, and cultural
exchanges, have been frequent. "Chinese enterprises coming to South
Africa for porcelain exhibitions is a good way to promote bilateral
trade," said Ling Gui, Chinese commercial counselor to South
Africa. "However, they must proceed in a systematic way instead of
rushing in, otherwise, they will cause confusion, the market will
become disorderly and Chinese products in South Africa in general
will be discredited."
Ling stressed that South African market has a great potential,
but mainly in light industrial commodities for daily use, household
electrical appliances and small-sized machinery. Generally
speaking, its market capacity is limited, he said. Before coming to
South Africa, companies must go far beyond a superficial
understanding of the market through cursory observation. They must
fully consider the customers' degree of identity with their
products. For example, do South Africans think highly of porcelain
or not? Appreciation doesn't mean buying. They must be very careful
when cooperating with local Chinese and don't give ready credence
to introductions and promises. Some people invite or receive groups
merely to seek a big profit, rather than caring about their
business.
(China.org.cn translated by Li Jingrong September 29,
2003)
