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.
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)
