On October 18, the First Pan Home Furnishing Industry Development and Cooperation on the Belt and Road Forum, which was hosted by Bureau of Commerce of Foshan City and organized by China Ceramics City Group, rang down its curtain successfully. Over 500 guests gathered for it at China Ceramics Industry Headquarters, including leaders from the government, the press and representitives from China-ASEAN Business Council and pan home furnishing industries at home and abroad.

 

At the beginning of the forum, Mr. Xu Ningning, Executive President of China-ASEAN Business Council delivered a speech of “Opportunities & Challenges of Pan Home Furnishing Industry in ASEAN”. The second speech “International Branding Strategy” from Mr. Chen Dingrong, Senior Consultant of China Building Ceramics & Sanitaryware Association inspired the manufacturers to establish the brand in overseas market and to broaden export channels.

 

 

Later, representitives from pan home furnishing indutrial associations joined the dialogue part on stage, which was the climax of the forum, inculding Myanmar Construction Entrepreneurs Association (MCEA), Lao National Construction Association, Indonesian Chamber of Commerce and Industry-China Committee, Cambodia Constructors Association, Foshan Ceramics Industry Association, Foshan Furniture Industry Association, Foshan Lighting Association and so on.  As the MC of this part, Ms. Connie Yu, vice president and CEO of China Ceramics City Group, raised a series of questions and discussed issues about construction industry, international marketing and cooperation between China manufacutrurers and overseas professional buyers, so as to help to erase mutual information asymmetry and deepen the recognition of  Chinese and Southeast Asian markets.

 

Wonderful Dialogue Highlights

 

Q1: What’s the demand condition of building materials and furniture in your country?

 

Mr. Tin Aung Myint, Joint-Secretary of Myanmar Construction Entrepreneurs Association (MCEA): MECA has over 1650 members, and he suggested developers in China establish a ceramic mall like China Ceramics City in Myanmar. 

 

Mr.Khampanh Sengthongkham, Office Supervisor of Lao National Construction Association encouraged Chinese manufacturers to set office in Laos where building materials can be exported to other countries, not just for Laos market.

 

Mr. Haris Chandra, Vice Chairman of Indonesian Chamber of Commerce and Industry-China Committee, indicated that Indonesia is the only country from Southeast Asia entering G20. On the way of exploring Southeast Asia market, Chinese manufacturers or devlopers would better consider the combination of busineess and social responsibilities which caters to local development demands, such as creating job opportunites, so as to enhance puchasing power of local people and broaden the market space of building materials.

 

Mr. Hann Khieng, Vice Chairman of Cambodia Constructors Association: products in Cambodia enjoy zero-tariff toEurope, and raw materials imported from other countris are also untaxed to other countries. To establish industry garden is a brilliant way for Chinese enterprises to explore overseas market in tax holiday.

 

Q2: What’s the largest obstacle to your company when approaching Southeast Asian market?

 

Mr. He Xinming, Presient of Foshan Ceramics Industry Association, demonstrated that there are three major problems Dongpeng Ceramic is facing. The First is political instability. The second is anti-dumping and long authentication time to ceramic tile.Last but not least, building materials market of Southeast Asia is not mature, where their recognition to Chinese ceramic is lack of quality with low price.

 

Mr. Wen Feng, Secretary General of Foshan Furniture Industry Association: Under leads of government, associations from pan home furnishing industry at home and abroad should jointly make great efforts in branding of "Made in Foshan".

 

Mr. Wu Yulin, President of Foshan Lighting Association: In early years, lighting industry mainly focused on Thiland and Singapore market, but now it has changed resulting from “war of price”. In fact, over 90% of high-end lighting products in Germany are made in China, but just from OEM manufacturers.With high quality, Chinese products will definitely broaden its markets if they can be added more high value. 

 

Q3: How can Chinese brands enter the main channel of Southeast Asian market? What’s your suggestion?

 

Mr.Haris Chandra, Vice Chairman of Indonesian Chamber of Commerce and Industry-China Committee: The largest problem now is that consumers do not have any recognition of Chinese brand, and there is a long way to get through it. The smart choice I can offer is that Chinese companies can match suitable and reliable partners in overseas market and establish factories. In Indonesia, ethnic Chinese occupies three position of minister in government department which lay significant emphasises on Chinese market. In addition, Indonesia embraces largest population in Southeast Asia, which stands for considerable market which Chinese companies cannot ignore.

 

Mr.Hann Khieng, Deputy President of Cambodia Constructors Association: If Chinese brand would like to take root in Cambodia, deep cooperation with contractors is inevitable.

 

Mr. Tin Aung Myint: In Myanmar, building materials from China are used for over 4 million flats, covering 40% of total housing projects. And in the capital, lots of high-end buildings are under construction, 90% of which are using Chinese products. 

 

Mr. Khampanh Sengthongkham, Director of Lao National Construction Association: To promote Foshan brands, advertising in our country is the primary one. Then, to strive for demonstration project will help the fame and reputation a lot, displaying high quality of products from Foshan. One significant suggestion is to promote through agencies, distributions and industrial associations in Laos.

 

 

The forum aimed at building a communicative bridge between Chinese manufacturers and proffessional buyers from the countries on the Belt and Road, like distributors, designers, contractors and devlopers, by delivering the message about the real and latest market information to Chinese companies for clearer and more accurate decisions on the overseas branding strategy.  At the end of it, Foshan Pan Hone Furnishing Industrial Alliance on the Belt and Road was formed; and representitives of the associations at home and abroad made declaration of International Collaboration in Pan Home Furnishing Industry.