Local companies must be innovative when entering Chinese market: SLCBC

The Sri Lanka – China Business Council (SLCBC) urged l ocal companies t o think differently and be innovative in their approach if they aim on setting a firm foot in the Chinese market.

SLCBC President Navindra Abeysekera at the Council Annual General Meeting (AGM) held last week said that if Sri Lankan exporters are t o penetrate t he Chinese market, there needs to be a change the mindset.

“We need to focus on the new and emerging Chinese consumers, their requirements and behavioural patterns, instead of focusing on products in the traditional export sectors. We need t o transform ourselves from producers of raw material to producers of finished goods,” he told the audience that included People’s Republic of China Ambassador to Sri Lanka Yi Xianliang.

“It is also important to note that each and every province in China has to be looked at as a separate state, with separate rules and a separate economy. A blanket approach will be of no help.”

Furthermore, he stressed it is essential for local companies to visit China, identify the required products for that market and manufacture it in Sri Lanka with the same or better quality.

Abeysekera pointed out that the product segment which has the highest import value for China is electrical and electronic related products which currently accounts for US $ 425 billion, 22 percent of China’s total imports.

Another area worthy of exploring according to Abeysekera is the jewellery, precious and semi- precious stones segment, as it has recorded the highest growth percentage in 2014. I mports made by China in this segment increased by 128 percent (US $ 42 billion) compared to that of 2013, illustrating the disposable income of the ‘new Chinese consumer’.

The council chief assured that with the hope that a free trade agreement (FTA) with China will no doubt give Sri Lanka the required boost to reach the next level of economic growth and prosperity, the SL - China Business Council would assist and provide the necessary support to make the Maritime Silk Road agreement a success.

The business council consists of over 150 member companies and collectively contributes to over 80 percent of trade and investment with China.