Finnish firms prepare for CIIE
▶ Times of ‘cheap China’ are over, people want real quality and value: manager
Ascore of Finnish companies will attend the China International Import Expo (CIIE) to be held in Shanghai from November 5 to 10, showcasing Nordic values in sustainability, creativity and responsibility.
Led by the telecommunication giant Nokia, the delegation comprises renowned wood-based products suppliers, food industry pioneers, engineering enterprises and high-tech service providers.
Ahead of their departure to Shanghai, some management team members revealed to the Xinhua News Agency their prospects for the Chinese market and expressed their commitment to engaging in the country’s full scale business, despite the growing protectionism in the world.
They believe that China’s massive consumer market, with increasing demands for high quality goods, provides huge potential for Finnish enterprises.
Pulp products
At the expo, Finnish bio-product producer Metsa Group will sign an agreement with Chinese shipping company COSCO to strengthen their cooperation, the group’s President and CEO Ilkka Hamala said.
The group is growing all of its businesses in China, and a senior Chinese executive has been recruited to represent the whole group in Shanghai. In the upcoming exhibition, Metsa Group wants to present “who we are and all of the products we have to offer to the Chinese market,” said Hamala.
Metsa Group is now the biggest softwood pulp supplier in China. About 15 percent of its total revenue, or over 1 billion euros ($1.15 billion), comes from the Chinese market annually.
Its subsidiary Metsa Fibre exported approximately 1 million tons of pulp to China, while the number was 60,000 tons in 2004 when it began its sales in the country.
Five years ago when the firm’s pulp exports to China stabilized at 700,000 tons annually, its production capacity reached its limit at that time. Metsa Group then decided to build a new mill in Aanekoski, central Finland, to enlarge the capacity. The increased trade has benefited the Chinese customers and Finnish forest owners as well, said Hamala.
China is by far the fastest-growing market on the company’s global map, according to Hamala. China already exceeds European countries as the biggest pulp export market for Metsa Group, which requires very efficient and reliable logistics.
“That’s why we want to strengthen the cooperation with COSCO for example.”
Besides pulp products, Metsa Group is trying to secure a wider customer base for solid wood products. New kinds of wood-based textile fibers are under development and will soon be potentially available for sale, according to Hamala.
Innovative dairy
Having engaged in business to business sector for about 30 years with China, Finnish leading dairy company Valio has been eager to explore the consumer market there. Valio branded milk powder and ultra heat treated milk products are available both in e-commerce shops and international supermarkets in the Shanghai area, said Timo Pajari, senior vice president of Valio.
Facing the highly competitive market in China, Valio will focus on the premium segments which are “valuing the highest quality and the best innovation,” said Pajari.
In Shanghai, Valio wants to attract new customers by presenting some innovative products to the market, Pajari said, adding that “for us, this is a good window to show our capabilities and safe products with good benefits.”
As the first in the world to launch ready-to-feed (RTF) baby food, Valio also sees opportunities for its unique RTF baby food in China.
“Chinese consumers are extremely demanding, they appreciate the quality and purity, and they want to know where the product is coming from,” said Pajari. He considers Chinese consumer expectations as an opportunity for Valio to expand its business in China.
Established 113 years ago, Valio is a cooperative owned by 5,000 farms across Finland. “The higher the products are valued and more premium products you can develop, the more it also benefits the Finnish farmers,” he said.
Peppa world of play
Lappset Creative, a division of the Lappset Group which designs and builds visitor attractions like theme parks, has designed the world’s first Peppa World of Play in Shanghai’s Pudong district.
Miia Tahtinen, the manager of Lappset Creative in China, was proud of the world-famous cartoon landing in the Chinese city.
“You just go inside and it is like you are in the cartoon,” she said.
Tahtinen said China will become the world’s largest market for family entertainment in two years and she believes it means great opportunity for Lappset, which has renowned reputation in safety and creativity when designing facilities.
By attending the expo, Tahtinen hopes she will meet existing partners and potential customers, and will have the chance to discuss safety issues with policymakers.
Chinese parents also demand creativity.
“The way we design our product is that when you play them, you develop your own creativity,” Tahtinen said. “The time of cheap China is over, and people want real quality and real value. That’s why we really believe we have a rosy future in China.”