dhl express - berenburg in china

EXPORTEREN IN DE 21STE EEUWBerenburg in China?

Export in the 21Export in the 21stst century: century:Selling Berenburg in China!Selling Berenburg in China!

Prof. Dr.Prof. Dr. Rien T. SegersRien T. Segers

Week van de ondernemerWeek van de ondernemerGroningen 4 & 5 juniGroningen 4 & 5 juni

Hanze University of Applied SciencesHanze University of Applied Sciences International Business SchoolInternational Business School

Hanze University of Applied SciencesInternational Business School

• NL 2nd export country of Europe, after GNL 2nd export country of Europe, after G• More than 200 K exporters (7% > than in 2012) More than 200 K exporters (7% > than in 2012) • Most of them MKB (< 250 employees)Most of them MKB (< 250 employees)• 2 million NL jobs dependent on export2 million NL jobs dependent on exportSource: Internationaliseringsmonitor 2014, 2e kwartaal (CBS)Source: Internationaliseringsmonitor 2014, 2e kwartaal (CBS)

Thus:Thus:NL export country, but ….NL export country, but ….

Some statisticsSome statistics


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NL export, to which regions?NL export, to which regions?

• EurozoneEurozone• EU (no Euro)EU (no Euro)• Other European countriesOther European countries• AfricaAfrica• North AmericaNorth America• Oceania, other countriesOceania, other countries• and… Asiaand… Asia



5

NL import versus NL exportNL import versus NL export



Source: Internationaliseringsmonitor 2014, 2e kwartaal (CBS), p. 26Source: Internationaliseringsmonitor 2014, 2e kwartaal (CBS), p. 26

6

A severe discrepancy and anachronism:A severe discrepancy and anachronism:

• Export from NL to Asia only 10%!Export from NL to Asia only 10%!• Import to NL from Asia 22%!Import to NL from Asia 22%!



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Volume of import from Asia Volume of import from Asia willwill change change significantly; export significantly; export hashas to change to change

2121stst century = the Asian century century = the Asian century

Example:Example:Import from China: + 694% over one year!Import from China: + 694% over one year!But: export to China: only +140% over one year!But: export to China: only +140% over one year!

That means: enormous export CHANCES!That means: enormous export CHANCES!



8

Most important development for export:Most important development for export:2121stst century becomes the century of Asia century becomes the century of Asia

The New New YorkThe New New York


The New New York in the 21st centuryThe New New York in the 21st century

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Asian companies 2014Asian companies 2014

Ever heard of these companies in 2014?Ever heard of these companies in 2014?

CHINA FIRST AUTOMOTIVE WORKSCHINA FIRST AUTOMOTIVE WORKS

COFCOCOFCO

DR. REDDYDR. REDDY

FLEXTRONICS INTERNATIONALFLEXTRONICS INTERNATIONAL

GEELYGEELY


1010

Ever heard of these companies in 2014?Ever heard of these companies in 2014?

HON HAIHON HAI

HUTCHISON WHAMPOAHUTCHISON WHAMPOA

KTKT

POSCOPOSCO

SKSK Central question:Central question:

Are you ready for Dr. Reddy?Are you ready for Dr. Reddy?

Asian companies 2014Asian companies 2014


111111

Back to 1970: ever heard of these companies?Back to 1970: ever heard of these companies?

CANONCANON

HONDAHONDA

KIKKOMANKIKKOMAN

MITSUBISHIMITSUBISHI

NECNEC

Japanese companies 1970Japanese companies 1970


12121212

Japanese companies 1970Japanese companies 1970

or of these companies in 1970?or of these companies in 1970?

NISSANNISSAN

PANASONICPANASONIC

SHARPSHARP

SONYSONY

TOYOTATOYOTA

15 years later: household brands15 years later: household brandsHanze University of Applied Sciences

International Business School

1313

East Asia + IndiaEast Asia + India

131313131313

ChinaChina

IndiaIndia

MyanmarMyanmar

LaosLaos

VietnamVietnam

CambodiaCambodia

ThailandThailand

SingaporeSingapore

MalaysiaMalaysia

South-KSouth-Koreaorea

JapanJapan

PhillipinPhillipineses

BruneiBrunei

IndonesiIndonesiaa

ASEAN + 3 + IndiaASEAN + 3 + India

East AsiaEast Asia


14141414

Times and hegemons are changing …Times and hegemons are changing …

1919thth century century: : the century of the U.K. > Britainizationthe century of the U.K. > BritainizationTransition period: 1933 – 1945 > from £ to $Transition period: 1933 – 1945 > from £ to $Decline U.K. ; rise USADecline U.K. ; rise USA

2020thth century century: : the century of the USA > Americanizationthe century of the USA > AmericanizationTransition period: 2007 – 2020 > from $ to ?Transition period: 2007 – 2020 > from $ to ?Decline West ; rise Rest, BRIC, but mainly Decline West ; rise Rest, BRIC, but mainly AsiaAsia

2121stst century century: : (again!) the century of Asia > Asianization(again!) the century of Asia > Asianization

NOW: NOW: transition period >>>transition period >>>

Now: transition periodNow: transition period


151515

The 2008 financial-economic crisis:The 2008 financial-economic crisis:Extremely severe > resulting in:Extremely severe > resulting in:

a transition perioda transition period= fundamental shift in thinking, acting and = fundamental shift in thinking, acting and organizing over an extensive period of time > organizing over an extensive period of time > paradigm change, that means:paradigm change, that means:

In In everyevery social domain transition processes social domain transition processes

GOOD DECISIONS AND FAST IMPLEMENTATIONS > GOOD DECISIONS AND FAST IMPLEMENTATIONS > COMPETITIVE AND LEADING COUNTRYCOMPETITIVE AND LEADING COUNTRY

CASE: NL INFRASTRUCTURE >>>CASE: NL INFRASTRUCTURE >>>



SShinkansen in JP 1964hinkansen in JP 1964= the greatest success in JP transportation history= the greatest success in JP transportation history

Why no cooperation with JR??Why no cooperation with JR??

Fyra in NL 2013Fyra in NL 2013= the greatest disaster in NL transportation history= the greatest disaster in NL transportation history

e.g. INFRASTRUCTURE, COMPARE:e.g. INFRASTRUCTURE, COMPARE:



17171717

EAST ASIAEAST ASIARise Rise andand renaissance of East Asia renaissance of East Asia

First: RISE OF EAST ASIAFirst: RISE OF EAST ASIA% of world GDP:% of world GDP:

(Figures in percentages of world GDP)(Figures in percentages of world GDP)Source: Source: Global EuropeGlobal Europe by the European Commission (Oct 2011), p. 15-16 by the European Commission (Oct 2011), p. 15-16

Three transition processesThree transition processes



18181818

Second:Second: RENAISSANCE OF EAST ASIA RENAISSANCE OF EAST ASIA

Source: Source: http://rationnelsansfinalite.blogspot.nl/2010/05/deux-millenaires-de-http://rationnelsansfinalite.blogspot.nl/2010/05/deux-millenaires-de-croissance-hommage.html croissance-hommage.html (data from Angus Maddison)

Note: as economic power shifts towards East Asia, Note: as economic power shifts towards East Asia, political power does toopolitical power does too

Three transition processesThree transition processes

• an extremely strong national identity > an extremely strong national identity > > pride & drive > pride & drive

• very close ties between ‘triple helix’:very close ties between ‘triple helix’: Government/ministriesGovernment/ministries BusinessBusiness Education/ScienceEducation/Science

The major success factor in EA countries:The major success factor in EA countries:a unique mix of a unique mix of

This model – with distinct national Asian variations –This model – with distinct national Asian variations –results in very comp bus strategies >>>results in very comp bus strategies >>>What to expect from East Asian companies? What to expect from East Asian companies?

An analysis of East Asia’s successAn analysis of East Asia’s success


202020202020

East Asian companies’ competitive advantagesEast Asian companies’ competitive advantagesvis-à-vis Western companies:vis-à-vis Western companies:

• corporate identity based on group focuscorporate identity based on group focus

• specific, non-western business strategies >specific, non-western business strategies >

• long term perspective >long term perspective >

• creation of a family atmosphere > gambate / guanxhicreation of a family atmosphere > gambate / guanxhi

Eastern competitive advantagesEastern competitive advantages


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>> East Asian companies’ competitive >> East Asian companies’ competitive advantages vis-à-vis Western companies;advantages vis-à-vis Western companies;

• experts in innovation >experts in innovation >

• value and stimulate education, value and stimulate education,

research, training > research, training >

• win by aiming higher >win by aiming higher >



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>> East Asian companies’ competitive >> East Asian companies’ competitive advantages vis-à-vis Western companies:advantages vis-à-vis Western companies:

• have a drive to outperform Western co’s >have a drive to outperform Western co’s >

• buy their way into the big leagues >buy their way into the big leagues >

they have all the capital needed for fast, global expansionthey have all the capital needed for fast, global expansion

• in most EA countries: lower wages per hourin most EA countries: lower wages per hour



Example: Example: China’s growing bus influence in EUChina’s growing bus influence in EU

(source: Segers 2013, p. 83)(source: Segers 2013, p. 83)

• What should be the answer to the growing Chinese influence?What should be the answer to the growing Chinese influence?tariffs?tariffs? : no (case: 47% tax on Chinese solar panels!!) : no (case: 47% tax on Chinese solar panels!!) cooperation: yescooperation: yes

China’s riseChina’s rise


2424242424242424242424242424

Let us connect our export with the new world Let us connect our export with the new world center:center:

East Asia: innumerable chances!East Asia: innumerable chances!

ConclusionsConclusions


Obviously export to Asia difficult by:Obviously export to Asia difficult by:

• physical distancephysical distance• but mainly cultural distancebut mainly cultural distance

- language- language- religion- religion- legal system- legal system- political system- political system- outlook on life- outlook on life- customs and habits > decision making process- customs and habits > decision making process- market developments- market developments- service- service

• in addition: all East Asian countries are differentin addition: all East Asian countries are different



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Professional help is abundantly offered by:Professional help is abundantly offered by:

• KvK in NL and in East AsiaKvK in NL and in East Asia• NL embassiesNL embassies• NFIANFIA• FenedexFenedex• Other institutions, such as banks, DHLOther institutions, such as banks, DHL• Myself: assisted more than 100 companiesMyself: assisted more than 100 companies



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EAST ASIA = ENORMOUS EXPORT CHANCESEAST ASIA = ENORMOUS EXPORT CHANCES



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Sorry for short presentation; happy to elaborate at another occasion!Sorry for short presentation; happy to elaborate at another occasion!

Thanks so much for your attention!Thanks so much for your attention!

ThanksThanks


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E-mail addressE-mail address

Prof. Dr. Rien T. Segers

[email protected]


Week van de Ondernemer 2014 GroningenWeek van de Ondernemer 2014 Groningen

Meer kennis van Prof. Rien T. Segers

opdoen:

13 juni WTC Leeuwarden

Week van de Ondernemer 2014 GroningenWeek van de Ondernemer 2014 Groningen

Webinar “Betalingsrisico’s in een notendop”

12 juni 15 uur Online

Deel drie in een serie van vier webinars

“Exporteren doe je zo!”

Week van de Ondernemer 2014 Groningen

THANK YOU!