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jampro explores
business opportunities in china part 2
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hen it comes to export, Jamaican industries have traditionally targeted the United Kingdom and the United States as our primary markets, with some focus on our Caribbean neighbours as well. The average business owner wouldn’t even think to consider China as a potential market, but with a burgeoning, affluent middle class and a needs-driven, city-centric population, it is worthwhile to explore the possibilities. Perhaps the sector with the greatest potential for export to China is the food industry. According to Chihon Ley, the Current Academic Director of the International Business Management Degree in the Asia-Pacific area, the Chinese are more trusting of foreign food than local goods due to the scandals that have affected the Chinese food industry in recent years. “They are willing to pay a little bit more for food that can assure them that they are eating safe products,” he said. “This new Chinese middle class not only eats more, they eat better, and they are absolutely open-minded to new food experiences right now.” Ley was speaking at the recent JAMPRO Trade and Invest Trends and Opportunities for Doing Business with China seminar held to sensitize local business interests about the prospects and best practices when doing business with the Chinese. The seminar was a collaborative effort between JAMPRO, DHL global couriers and Red Global de Exportacion (RGX). Ley presented findings from a study carried out by RGX, conducted on 300 enterprises from China, Central America and the Caribbean.
Once the challenge of getting the goods to China has been addressed, the next issue will be to get them to the specific buyer. If you are shipping to the coastal areas where the majority of the population is concentrated, there will be less difficulty because of the sophisticated transportation networks, including airports, seaports, roads and railway systems. However, transporting goods inland is problematic as these areas are not as developed. As a result, goods are often damaged on the way from the shipping port to the intended buyer. Therefore, Ley encouraged the business owners present to ensure that their goods are of a standard that can travel well.
This new Chinese middle class not only eats more, they eat better, and they are absolutely open-minded to new food experiences right now Solving Logistical Problems Of course, the major challenge to Jamaica-China export is logistics. The two countries are approximately 13,888 miles (7499 nautical miles) apart, which tends to make it expensive to ship goods. However, according to Berletta Henlon Forrester, Manager of Export Promotion at JAMPRO, these prices are more reasonable than most business owners would assume. Therefore, it is advisable for business interests to research what options are available and at what price points.
To help alleviate these problems, RGX has partnered with DHL to create dhlbusinesstochina.com, a one-stop-shop where business interests in the Latin American and Caribbean region can find a vast source of information on doing business in China, from specific import and export opportunities to trade fairs to assistance with scheduling meetings with Chinese companies. “Also, month by month, we will run several business meetings between Chinese companies and DHL clients. There will be at least two different companies every month,” Ley said. DHL is well connected in China, with 82 service points, 10,000 employees and 1,600 vehicles serving over 400 cities. There is also a 24-hour Quality Control Centre where shipments are monitored in real time to ensure fast delivery.
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Foreign Trade Regulations In order to do business with China, local interests need to be aware of the characteristics of the Chinese market, especially where foreign trade regulations are concerned. Many of these have changed or are currently under adjustment since China became a member of the World Trade Organization in 2001. For instance, not all companies can import goods. The market is heavily regulated; therefore businesses involved in foreign trade must have an importing license. It is up to local businesses to verify their buyers through the Chinese Embassy or other regulatory bodies. Other regulations include 17 per cent VAT on foreign goods; two categories of custom duties: general and special agreement tariffs; subsidies and incentives for exporters; mandatory foreign trade licenses and market restrictions that include quotas on imports. More laws and regulations can be found here.
The market is heavily regulated; therefore businesses involved in foreign trade must have an importing license. It is up to local businesspeople to verify their buyers through the Chinese Embassy or other egulatory bodies.
ships from as early as kindergarten. This is best described by the term ‘guanxi’, which, in the broadest sense, means ‘relationships’. The deeper meaning refers to a set of relationships operating the principle of reciprocity – you do for me, I do for you. These relationships shape the Chinese business network and customary ways of carrying out transactions. In fact, according to Ley, the friends children make at school are lifelong connections, so mothers are meticulous in choosing schools for their children to ensure that they will become a part of the best network possible.
The Importance of Guanxi Relationships are important in all aspects of life and when it comes to the world of commerce, who you know and who knows you can sometimes make or break a business. The Chinese understand the importance of cultivating good relation-
“Chinese entrepreneurs want to see you. They want to know you, have a sense of personal contact,” Ley said. If the initial offer of friendship is accepted and the relationship cultivated, local businesspeople doing business in China will be able to access a number of benefits, including access to additional resources and information, lower transaction costs, assistance
with cutting through bureaucratic red tape and increased social capital and longterm reciprocal relationships.
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insights by Tracey-Ann Wisdom
R.I.P. HP touchpad
overpricing and poor vision kills tablet
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reins from RIM as the de facto mobile OS for business,” said Tony Bradley of PCWorld. “Instead, it launched a half-baked tablet, scrambled around for seven weeks with no coherent marketing vision, and threw in the towel without even putting up a decent fight.”
he tablet market recorded its first major casualty as HP recently pulled the plug on the TouchPad and sent its webOS mobile operating system into hibernation, a mere seven weeks after it was launched. However, HP will continue to “explore options to optimize the value of webOS software going forward… Our WebOS devices have not gained enough traction in the marketplace with consumers,” said HP CEO Leo Apotheker. The TouchPad’s sudden death was a shock to the tech world although, in hindsight, it was already written. The device has been in trouble since its first day on the market, drawing criticism from tech experts for being too expensive (US$500-US$600, same as the iPad 2) and too heavy (23% heavier than the iPad 2 and 9% more than the iPad). Despite HP’s best efforts, including three separate price cuts in August alone, TouchPads continued to line the shelves of all its retailers, including Wal-Mart, Best Buy, which only sold 26,000 of the 270,000 it ordered and even Staples, which had reported relatively good sales when it offered a US$200 discount earlier this month. The harsh truth is that the TouchPad just could not compete with the iPad, which it apparently emulated. Except for the fact that it was missing one critical component of the Apple device’s success – apps. “If you don’t have at least 100,000 apps, you won’t make any headway in the market,” said Carl Howe, director of consumer research at the Yankee Group. “Apple has about 400,000 apps and Android about 200,000.” With only
The TouchPad’s sudden death was a shock to the tech world although, in hindsight, it was already written.
With a better marketing vision, HP would have realized that coming in at the same price point as the market leader was ill-advised, especially considering the lack of apps. The company should have taken a page out of the books of specialized tablets like the Kindle, which continue to fly off the shelves despite the availability of e-books on the iPad. The key is to find your own niche in the marketplace so that even if your product is expensive, customers can justify the purchase. advertisment
300 native apps, HP was clearly out of their league. With all these challenges, it is surprising that HP would have even contemplated pricing the TouchPad at the same point as the iPad, which is the most expensive tablet in the market, but offers the most to its users. No doubt this ambition was fueled by the apparent capabilities of webOS, which many experts argue was technically capable or even superior to Apple’s iOS and Google’s Android platforms. “HP had the financial resources, marketing muscle, and corporate presence to develop and promote WebOS and take the yourmoney ezine
philanthropy in action by Tracey-Ann Wisdom
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Women’s Leadership Initiative sisterhood for nation building
omen have always been seen as the backbone of Jamaican society, raising their children and caring for their families while contributing to our economic development with their nine-to-five jobs. In addition to these responsibilities, many women also take on the task of reaching out to those who need a helping hand, whether on their own or through charitable organizations. One such organization is the Women’s Leadership Initiative, a sisterhood of close to 100 members drawn from across all spheres of Jamaican commercial life politics, banking and finance, media and philanthropy. They are charged with promoting the advancement of women while contributing to nation building. The WLI came out of the United Way Women’s Leadership Initiative and ‘Building Bridges’ Exchange launched by former US Ambassador to Jamaica, Sue Cobb in 2003. The WLI is currently headed by communications consultant Marcia Erskine, managing director Marcia Erskine and Associates. She is a founding member of the organization and has served as chair of the communications committee since its inception. The women are organized in three main subcommittees: health, early childhood education and advocacy. The chair also consists of the finance, public relations, membership and orientation, strategic planning and grant planning committees. These committees are responsible for spearheading the fulfillment of the organization’s mission and vision by developing and implementing relevant projects. The WLI has undertaken a number of major projects related to the three main subcommittees. Its biggest project
Members of the Executive Committee of the Women’s Leadership Initiative. WLI Chairman, Marcia Erskine, is second from left.
They are charged with promoting the advancement of women while contributing to nation building. The WLI came out of the United Way Women’s Leadership Initiative and ‘Building Bridges’ Exchange launched by former US Ambassador to Jamaica, Sue Cobb in 2003. is VOUCH, the Voluntary Organization for the Upliftment of Children, which it adopted as its main responsibility. The health subcommittee targets the Mary Issa Clinic, operated by Hope Worldwide, while the Education Subcommittee focuses on the Sylvia Foote Basic School and the Mary Issa Infant School. These facilities serve members of the Fletcher’s Land and Allman Town communities. The WLI has spent over J$2 million on renovating and upgrading the facilities as well as aiding in teacher training and certification. The group also sourced the neces-
sary funding to carry out repairs after damages caused by hurricanes Dean and Gustav in 2007 and 2008, respectively. Members of the WLI also visit children’s homes weekly to interact with, read for and mentor children. They also assist students with academics and teach them the soft skills necessary to create successful careers. The WLI Mentorship Programme was officially launched in 2007, connecting highly motivated young women with mentors from the WLI membership who provide them with guidance, experience and support. This year, three mentees from the Programme have also been awarded university scholarships.
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Renee Lindo
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brings parenting into the 21st Century
enee Lindo was always on the lookout for fun local activities to do with her children, but she could never find a list of events or attractions in one place. Tired of relying on tidbits of information from friends or the occasional advertisement, the mother of two took things into her own hands and came up with Kid ‘N’ Play JA. The two-month-old website is a resource for Jamaican parents who want to find out ‘what’s on for kids’ – child- and familyoriented events and activities, attractions and games, in addition to the latest information and advice from Renee and parenting experts. “Initially, I just wanted to focus on ‘what to do’, but then I wanted it to be more value-added, so I figured I would try to get professionals who work with children to submit articles on topics that parents would find useful and informative,” Lindo said. Contributors to the website include the Jamaica Association of Professionals in Nutrition and Dietetics (JAPINAD); psychologist Dr. Tammy Hayes-Robinson; the Ministry of Education; financial consultant Cheryl Hanson Simpson; Sharryn Dawson, author of Money Basics for Kids and Sharon McConnell-Feanny of Shakti Mind Body Fitness. There have also been several giveaways, including a week at Ballaz Football Summer Camp and book prizes such as Shaggy Parrot and the Reggae Band by Jana Bent and the aforementioned Money Basics for Kids. Lindo, who had an 11-year career at Pfizer Pharmaceuticals and also holds a certificate in Project Management, is still seeking contributors and partners for
would buy for their children, which is almost anything and everything,” Lindo said. She is also planning to launch a paid directory system where businesses can promote their services, such as birthday party planning. “I’m also in the process of setting up an online store to sell educational toys and games through Amazon. Some of the stock is actually there right now,” she added.
Renee Lindo founder of Kid ‘N’ Play JA
“Initially, I just wanted to focus on ‘what to do’, but then I wanted it to be more value-added, so I figured I would try to get professionals who work with children to submit articles on topics that parents would find useful and informative.”
As Kid ‘N’ Play JA continues to grow, Lindo is focused on creating a community of parents who share information with each other and learn how to fully engage their children. Her two-year plan is to expand the site to keep it exciting and dynamic and make it a respected household name. “I really am passionate about getting the information to parents and I feel that the success will come when it’s built how I want it and people love the information and love visiting the site,” she said. advertisment
Kid ‘N’ Play JA. “I would love to receive content from professionals, vendors and businesses who work with or for children and families. We are always looking for any kid- and family-friendly locations, to-dos and feedback that we can share,” she said. The website is in its growth phase, so the opportunity is also available for child- and family-oriented companies to come on board as advertisers. “Advertisers want the eyes that are coming to your site, and it’s parents who are using the site, so anything that parents yourmoney ezine
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