Sunday, July 29, 2007

Starting Heaven Fresh Branch in China

We've all heard of the booming Chinese economy, and it is every multinational company's dream to get a piece of the Chinese market. 

When I visited China last April, there were two things that surprised me the most.  First of all I did not need an interpreter.  Almost anywhere I went, there was someone who spoke English. All the teenagers have been learning English in schools from very early age and are able to communicate in English.   Then the 2nd thing that surprised me was the fact that Chinese malls were filled with expensive merchandise and were jam packed with buyers who had no trouble spending money buying those costly products.  This was contrary to my imagination of all the Chinese shops  crammed with "cheap Chinese goods".

Naturally, I started thinking if there was an opportunity for Heaven Fresh to sell air and water purifiers in China.  I searched for the  answer by talking to random people on the street.  Almost every one complained about the pollution and the need for clean air.  I also visited a young Chinese couple with a new born baby. During our conversation, when I mentioned that we are in the business of marketing air purifiers, the wife quickly brought in a thick magazine featuring baby products. Apparently, she had thoroughly studied all the products so she quickly flipped to the page that listed air purifiers.  She complained about her husband smoking at home and told me that she has been thinking about buying the air purifier as she was concerned about the baby suffering from the cigarette smoke. 

I had my answer to the opportunity in China for Heaven Fresh. There are more than 15 millions babies born in China every year.  All that Heaven Fresh needs is to target the educated and working mothers like the one that I met and get 2 thousand of them to buy air purifiers to sustain our Chinese office. 

Our Strategy

Being a Micro-Multinational and working with very limited capital, our utmost priority will be to break even in China in first few month.  To minimize our startup expenses, we will need someone with entrepreneurial spirit to manage the Chinese office. Someone who's willing to give whatever it takes to get the job done by wearing multiple hats and the eagerness to learn all the aspects of the business.  Among many people whom I met in China, I was particularly impressed by one young Chinese guy who I believe will be a perfect candidate to manage the Heaven Fresh China office.

As usual, our plan of action in China includes online sales, a reseller network of small businesses and distribution through large nationwide chains. Majority of the startup capital is raised by the existing company investors.  Our products are already manufactured in China and our preference is to get the factory become a Heaven Fresh partner in local distribution and marketing as well. 

If you are reading this post and feel that you can bring a significant value to the Heaven Fresh China venture, we would love to hear from  you and possibly work with you.


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