Recently, an export training session targeting the Eastern European market was packed with attendees. The Foshan Foreign Economic Relations and Trade Bureau, the organizer, stated that in the coming months, there would be specialized training sessions for exports targeting emerging markets such as the Middle East, India, and Brazil. Such detailed enterprise training is rare in the department's history.
In 2011, Foshan's exports to emerging markets increased from 25.4% to 29%. Against the backdrop of sluggish expectations for foreign trade, emerging markets have almost been hailed as a "savior." Governments, enterprises, experts... everyone is talking about Russia joining the WTO, Brazil hosting the World Cup, and the enormous potential of emerging markets has excited everyone. This rich cake seems to be right within reach; all that is needed is to eat it. However, some companies have found that this cake seems to come with "thorns," these "thorns" being hostility from local enterprises, targeted tariffs, consumer biases, etc. A misstep could result in new entrants getting pricked.
"The most significant growth came from India Guangzhou Dingshijie [http://b2b.cbd-china.com/index.php?homepage=34751978], where export amounts increased from $23 million in 2010 to $48.3 million, a growth of 110%. Brazil and Russia also saw growth exceeding 50%. Don't forget that last year was when Brazil targeted Foshan ceramics," a responsible person told reporters.
This year, the national foreign trade new policy proposed an "emerging market" strategy, meaning China will increase its efforts to open up emerging markets, especially developing country markets. It is understood that the Ministry of Commerce has selected around 30 countries as key breakthrough markets for this year and the next few years in its strategy for diversifying foreign trade. Efforts are being made so that by 2015, the proportion of trade between China and markets outside of Europe, America, and Japan will increase by five percentage points.
For the past 20 years, enterprises in developed economies have enjoyed a feast of China's high-speed economic growth. Now, however, the situation has changed somewhat, and Chinese enterprises also hope to share in the benefits brought by the growth of emerging economies. "Russia is about to join the WTO. In the past few years, Russia's GDP has maintained a relatively high growth rate. Coupled with its vast land and population, it is undoubtedly the best target market for enterprises," said Chen Yongjian of the Hong Kong Trade Development Council Research Department.
The growth of emerging markets brings many business opportunities. Russia is heavily investing in infrastructure, and aside from heavy industries, most of its products rely heavily on imports; Brazil will host the World Cup and the Olympics consecutively, making its construction materials market very promising.
Emerging markets are still advancing at high speed: b2b.cbd-china.com
"Russia is about to become a WTO member," and "Brazil will host the World Cup and the Olympics in the next few years," descriptions like these that can stimulate adrenaline can be heard at various export trade training sessions.
And indeed, emerging markets are full of promise. According to Foshan Customs statistics, in 2011, Foshan's total trade value with ASEAN countries grew by 23.8%; with African countries by 87.9%; with South American countries by 21.4%; and the combined trade value with the four BRICS countries—South Africa, India, Brazil, and Russia—reached $5.96 billion, growing by 64.4%. "The combined proportion of these markets has significantly increased, rising from 25.4% the previous year to 29%," said relevant officials from Foshan Customs.
To help enterprises better understand these markets, the bureau even invited the Hong Kong Trade Development Council to conduct training for enterprises, providing a detailed analysis of potential markets such as Eastern Europe, the Middle East, India, and Brazil.
Even ceramic enterprises, which are "besieged" in their export markets, have reaped substantial benefits in emerging markets. The Foshan Inspection and Quarantine Bureau reported that in 2011, 5,700 batches of ceramic products were exported to the BRICS countries (Brazil, Russia, India, South Africa) within its jurisdiction, with a total value of $218.21 million. Compared to the previous year, the number of export batches increased by 28.7%, and the value increased by 54.5%.