IBSM 2007. Memories. Emotions. Thoughts

Pre-Trip Thoughts

I can still remember that moment when we knew about the good news...
Winnie and I were screaming over the phone for 5 minutes!

The excitement continued as we consistently received emails from Mr Wong regarding updates of the trip.
I also renewed my passport for this trip
so I'm now holding a biometric passport ;)

Down to the Pre-trip workshops,
where we finally get to see one another!

The goals/aim I set for myself:
1) To improve on my communication skills
2) Understand the characteristics of international business
3) Learn more about the Chinese culture
4) To have fun! =]

Group 3 consists of the following girlies:
Andrea.Elizabeth.Xin Ni (BS)
Carol (TRM)
Winnie.Me (ACC)
It is good that we get to work with people from the different courses
as we need different points of view in order to make our project more complete.

What did we do in the workshop?
Lecture on International Business
Class Test
Research on the industrial specialization of each area in China
Primary Research on our topics
Presentation on our findings
Presentation on our opinions about Singaporeans and the Chinese
Sharing of China Experience by Guest Speaker
Preparation of Questions in Mandarin

The activities that left me the deepest impression - Day 3 !
Vocabulary Translation (from English to Mandarin) - a hundred of it!
Speaking of only Mandarin during the workshop
Note-taking from video

my scribblings

We were supposed to write in Mandarin, but I gave up in the midst of note-taking.
I took down the points in English instead because I knew I would not catch up if I were to continue writing in Mandarin.
This was the first time I question myself whether I am better in Mandarin or English :P

The journal which will be sticking with me during the company visits.

Each of us were given our personalised name cards.

At the end of the 5-day workshop,
I thought to myself: "Am I prepared for the trip?"
My answer was NO because there were so many things not done/packed!

BUT
mentally, I WAS PREPARED!
Can't wait to travel, learn and have fun!!!!!

PRD, here we come~

miss the good times;

Part 1: Hong Kong

Day 1:

Finally, the long awaited day arrived.
I would have taken baoyi's lift to the airport
but my family had decided to send me there instead.

The tour guide introduced himself to us.
Mr Yao
Saw many fellow IBSM-mates with their parents.
I suppose all parents are just concern about their children.

Wensong's parents came to tok to us
mini pri sch gathering =)
i think his father still looks the same over the years

mom. sis and me, right before checking in

waitingwaitingwaiting.

Winnie had to sit beside me when we were on e plane.
Poor her.
I think she could haf just shut my mouth with an apple for screaming 19581925023 times
It was my second time taking an airplane,
and it's to the same desination - HONG KONG!

@ Hong Kong:

at HK airport

winnie. me. andrea in our blazers

Group 3 at HKTDC
i realise that it's our only group pic

the accountancy gals

Hong Kong Trade Development Council (TDC)

Set up in 1966, the mission of this government related organisation is "To create and facilitate opportunities in international trade for Hong Kong companies, especially small and medium-sized enterprises (SMEs), and to promote a positive image of Hong Kong.".

A talk on TDC by one of the personnel.
We learn that TDC helps in:
1) Providing information
2) Connecting customers
3) Matching partners.
The organisation has a strong database to match investors to the different partners overseas.
Not only it is the chief drivers of Hong Kong’s trade, the TDC is also expertised in bringing more businesses to the PRD.

After that, we toured the council and its library.

There were magazines, telephone directories, free internet and fax (for local dialing) serivces, multimedia collection, travel guides, dictionaries, trade fair catalogues and etc.

At the HK business area, statistics, year books, annual reports can be found.
NEW: periodicals, journal, IT, chinese medicine.
They are arranged according to various topics, years or industries, thus faciliate users' research process. Yellow pages are also avaliable for users to find the relevant contacts for the various trade fairs.

Up at the second level, it is the SME business development collection, TDC photos, newspaper and clippings collection, fashion & design and word procession counters (requires registration).

and then, it's our turn to do our research in the library.
The references my group used were from the Pearl River Delta corner where there were about 4 shelves of books.

I researched on CEPA and development of the PRD since I feel that we have the least knowledge about it. This policy is to faciliate businesses in Macau and HK to set up businesses in China.
Economically, it is to help HK's service industries move faster to Mainland China, thus resulting in an increase in service industries in Mainland China. On the other hand, politically, CEPA will lead Hong Kongers to focus on middle forces, which sets a good example to Taiwan.

Benefits and Privileges:
1) entering the China market earlier than what was being complied with in the WTO agreement (HK service industry)
2) zero tax rate (HK investors in Mainland China)
3) Investment agreement (HK investors: lesser requirements)

The above content is being translated as the book was in Chinese. Sorry if I had not translate them well ;(

Another information I read on was PRD key challenges - overinvestment, shortages and preferential policies. These may be just information we read from books, but in one of the company visits (which I will write about later), the company indeed faces problem on shortages.
Hence, we can see that no matter how blooming the PRD's economy is, there will bound to have problems along the way.

China Trade and Investment Advisory Service
It is a verbal information counter where businessman/investors can consult the professionals regarding setting up business in China. Examples are the law and regulations, tax issues, marketing strategy and other policies.
An appointment is needed. As to how long will they get an appointment will depend on the type of questions being asked, since different advisors will focus on different expertise. I feel that this is very effective for SMEs as it zooms into problems directly, and getting a definite answer on the spot.

From here, we can see that the TDC has provided a very conducive environment for their local/foreign investors. It is a very all-rounded service, I would say. I definitely see very useful and effective assistance being provided by the council. Furthermore, TDC does not just not stop their assistance after helping SMEs establish their businesses, but provide continuous support for them. The TDC will also collect feedback from the existing SMEs so that they can improve and continue to help other SMEs.

On the whole, I definitely see the importance of going global because this IS the 21st century, which countries are interdependent on one another.

at night, was free and easy =)

andrea led the way and we ended up at avenue of stars

starbucks! =)

love the night scenery

LALALALALA

miss the good times;

Part 2: Shen Zhen

Day 2:

Early in e morning, we transferred to China - Shenzhen.

disco ball?!

girls! and our luggages (mine's the red one).

after that, we went to visit:
China South International Industrial Materials City 华南城

The first impression I have of this place was that it is very commercialised and developed. Since the previous IBSM batch had also visited this place, there must be a lot of things to be learned if not this place will not be included in this batch's again! =X

Part of the overview of the material city.
It definitely looks small over here.. until we proceeded for a tour.

on the tram! a very exciting ride.

See that there's no handle at the side of the seats?
Half of the time, we were worrying of falling off the seats rather than staying focused in the tour, which is why we did not really hear much from the facilitator.

The China South International Industrial Materials City, being developed on a 1.5 km sq site at Pinghu Logistics Base in Shenzhen, China, comprises of 5 trade centres:
1) Textile and Clothing Materials
2) Leather and Accessories
3) Metals, Chemicals and Plastic (the picture above)
4) Printing, Paper Products and Packaging
5) Electronic Accessories

"Every material that you need for your production, you can get it here."
This was one of the sentence I jotted in my journal.
I remember clearly the faciliator saying this. At first, I thought, "How is it even possible? Every material?"
But after the tour, I am convinced by what she said.

There are MANY units. This is when I realise that the material city is really big.
"This is like the size of Ang Mo Kio (the estate that I'm living in)!" I can't help it but exclaimed.
andrea & winnie replied, "This is bigger than Ang Mo Kio, lor."

Indeed, it is so big that it is accomodating 5672 units at the moment (figures are increasing as the material city is still under further expansion) when it is still at the Phase One of the project. Of which, the Electronic Accessories Trade Centre has the most number of display units and it still at the stage of expansion.

Other auxillary facilities and services includes:
1) Logististics Services, Ordinary Warehouse and Bonded Warehouse
2) E-Commerce Services
3) Conference/ Meeting Rooms and Exhibition Hall
4) Purchases Services Centre
5) Residential Areas
6) Catering Services and Convenience Store
7) Banking Service
8) Housing Facilities
9) Public Transportation Network
10) Industry Associations Offices
11) Business Start-up Consultancy and License Application Services
12) Restaurants
13) Hotels

An all-rounded service to faciliate trading is important, as it will not only speed up buying and selling, it will also save costs when the transactions can be done directly. Especially when the material city is aiming at the overseas market as well, there must also be considerations set aside for overseas buyers. Thus, not only does the company looks into providing effective and efficient sales service, it also take care of their (overseas) customers' welfare by having accomodation and recreation facilities built for them.

There are a lot of learning points to be noted. Just to name the more important ones:
1) Consumers benefit most through competition. In this case, the competition arises when the different display units are selling similiar products. Hence, in order to differentiate themselves from their fellow competitors, price is a crucial factor. Whilst not being able to quote too high a price, they must not quote a price lower than their costs too. Consumers will therefore compare and will settle at a (usually lowest) price which they are willing to pay.
2) Having excellent infrastructure is important, especially in China as it is such a big country. Being easily accessible will help a lot in international business.
3) Providing other auxillary facilities and services will help in attracting overseas buyers, as it saves time and cost.
4) There will always be room for further development to keep up with the changes in technology, tastes and preferences and etc.
5) The timing and location of setting up a business is very crucial. Being the first to set up a material city will bring about first-mover advantages, which is seen by success of the project.

wow. what a warm welcome! =)
It's an eye opening experience.

Market research-ing later!

didn't buy anything though.

mommy loves him

and then, we can't resist from KFC cos the meals everyday was "8 dishes + 1 soup".

back at hotel

Day 3:

windows of the world.

MY FAVOURITE!

andrea. me. winnie
trying hard to look taller.
:P
It's a pity that we did not get to enter to view the rest cos I would very much hope to!

miss the good times;

Part 3: Dong Guan

Day 3 (continue):

company visit again.
Aztech Communication Device (DG) Ltd

Aztech was incorporated in Singapore in 1986 and is listed in Singapore as well. The headquarters is in Singapore, having a major support office in Hong Kong for connecting with foreign investors in the PRD. Their R&D centres are located in Singapore, Hong Kong, Shenzhen and Dong Guan.
The one that we visited, is the manufacturing factory in Dong Guan.

I was quite looking forward to the factory tour because the modem I am using is from Aztech =)

the CCTVs!

accomodation for employees. Facilities in the executive apartments are water heater, air-conditioner television and elevator (coming up).

There's also basketball court, karaoke and a clinic. From these recreational facilities, we can see that the company takes care of staff welfare, simply because employees are very important assets to them.
When you take care of them in the good times, they will take care of you in the bad times.
I think it is very true.

Aztech is in a very suitable position to answer our doubts, being an overseas investor of China setting up a manufacturing base in the PRD.
Mr Jeremy Mun shared the attractiveness of the PRD:
1) Strategically located in Dong Guan, China. Proximity to Shenzhen and Hongkong will only take up 1.5 hours of travelling time.
2) Very low costs (labour, operations, materials)
3) Infrastructure established (ports, airports, roads)
4) International market
5) Strong state and city government support

Of which, our questions focused on the support from the government, and whether 'guanxi' is important. Mr Mun explained that having wide contacts is necessary, especially when the company is growing and earning more money, expectations will be higher. Building relationships (through golf or tennis matches), or networking, will aid businesses in being more aware with the environment, market and economy. These new things that are being shared may affect major business decisions. For instance, the customs officiers might even suggest to you things to avoid, what things that you should do and etc.

Learning issues:
1) Different countries will have different culture. Seek help if you face problem. I.e look for local China embassies or SPRING Singapore.
2) Having support from local government is important, especially in the PRD, as international businesses may need information that only the government has. "Guanxi" with the government is necessary. Mr Mun also said that he will try his best to follow the policies here.
3) Understanding the Chinese culture will definitely aid in business relations, for instance, networking. It will also prevent misunderstandings.
4) The more barriers of entry, the lesser the competition there will be. Only the survivors win.
5) Problems will definitely occur along the way. Aztech had walked out of difficulty in 1997. It takes determination and diligence to overcome it.
6) Know who are your good and bad customers. This is one of the business strategies that we should learn from as well.
7) A business should never stop looking for better venue/resources/alternatives in their operations. For instance, Aztech has moved from Singapore, to batam then to China, due to rising costs.

This is one of the best company visits =)

At night, we travelled to Guangzhou
and we had our dinner very late but the meal was.. fun!
It was the 盆菜。
;P

miss the good times;

Part 4: Guang Zhou

Day 4:

Here we're at guangzhou.
had breakfast as usual
then visited ZhuJiang Beer Factory
广州珠江啤酒集团有限公司

IBSM'2007

Factory Tour~

It was a short visit at the factory.

The company, which 30% of their sales are made up of its export, currently works on 3 production lines. The main materials for beer: high grade rice, premium hops, purified and filtrated water from Dongjing River and high quality making barley.

What I have learned:
1) They have different targeted consumers at different areas and for different retail groups. For instance, their products distributed to supermarkets are cheaper while those at hotels or pubs are more expensive. This is one of the business strategies that we should learn to increase profits.
2) To better control revenue, the company distributes their products to major distributors, which they will then distribute to smaller ones. It is also easier to identify trends and consumer patterns which will be crucial for business development.

After that, we went to the tomb of the 72 warriors (I seriously can't recall the proper name of the place)
Upon arrival, we saw little kids !

kids are VERY precious in China?
This is because each family only allowed to bear one kid
and they ALL look very cute.
chubby/rosy cheeks!

I wanted to snap the slope actually.
it's upward sloping, then downward sloping.
The purpose of it is to sort of "force" people to bow when they are walking towards their tomb.
How interesting isn't it?

Xiao Deng demo-ing

and then we tried it.
We were trying not to bow down
but it's impossible.
winnie's action explains it all =X

Do we look like a pro bizwoman? =D

one of my proud-est shots

bY.

beth. she loves the greenery (especially after her comment on the trees of guangzhou are very green).

I encouraged her to do it.
If possible, please zoom in this pic to look at her expression.
george (at the background) had the -_- look.
wahahahahaha

As you can see, we really love the peace there.

we love this picture so much.

五羊像:

the girls

the sole 11 guys

Tea Session with Regional Director of International Enterprise Singapore (Southern China), Mr Nee

There wasn't much on the tea, but for once, we asked a LOT of questions, that there was not enough time for everyone's questions.

International Enterprise Singapore (IE Singapore) aspires to help bring ready Singaporean firms to the overseas market. Mr Nee is from the Southern China region, which comprises of Hongkong, Macau and the other 8 provinces (in the PRD). Their job scope includes to watch out for business opportunities (e.g. looking out for master planning jobs), do general visits, advising and helping Singaporean firms (in China) on problems. They may exert certain influence on the government if there is a need to.

LEARNING POINTS:
China & Singapore - Based on last year's statistics, China is the biggest investment destination and is the 4th biggest trade partner for Singapore. Singapore is also China's 4th biggest trade partner. The Guangdong province accounts for one-third of foreign trade of China, hence it is an important gateway for China.

"Guanxi" & "mianzi" - Mr Nee shared that this is more important in the less developed areas. Areas that are more towards the coastal areas less need "guanxi" and "mianzi". Like Mr Jeremy Mun (from Aztech) had mentioned, relationship with local government is important, but it does not mean that the company will for sure be successful. When black and white is not so clear, the local government, who have "control" over laws, may interpret to close to what you want/need. Thus, "guanxi" comes into its importance.

CEPA - A policy which helps Hongkong and Macau businessmen to China before China fully opened up. However, this agreement does not seem as attractive as it seems to be as it only helps in certain sectors (eg. logistics). It may not be one of the attractions of PRD anymore.

Why China? - Besides the huge market and low labour costs, Mr Nee said that quality of labour and the cost performance of China labour is stronger than the other countries in the region (eg. Vietnam and Indonesia). Also, Singaporean firms will have to move out of the country to the overseas market due to limited resources and having more of the infrastructure fixed. Businesses can also save a lot of costs - materials easily avaliable, easy to produce things, logistics cost is cheaper and there's a big market to sell products to.

Attitude - Adapt to the culture. Do not complain. Keep an open mind. Flexible in certain things. Establish relations here. MUST have something. However, some of our traits should still be kept eg. integrity. Don't fall into temptation of cheating.

Labour issues - Wages will be suppressed as China is overly exploited by foreign investment. With the better skilled labour moving to work in the cities, the labour from the rural areas are being left exploited by factories of foreign companies. As a result, people in the cities are having good lives while those in the rural areas continue their lives being exploited. The cycle carries on, thus wages does not affect much.

I really learn a lot from this tea session, not just regarding international business, but also on my general knowledge about a lot of things. It is an "ear-opening" experience in the sense that even though we did not get to see the things he mentioned personally, but it seems so real when he was sharing with us. Despite being a big country, China also faces domestic problems as a result of globalisation. which sets me to think that everything will has its pros and cons, nothing is perfect.

Guangzhou Leather Wholesale Market

We went there with the thought that we can buy a lot of things!
but it turned out to be the other way round.

The "strategy" that my group of friends adopted was to speak in English when we were talking amongst ourselves, and only to ask for the wholesale price after we had discussed what price we were settled at.
It was quite a scary experience as wherever we went, there would bound to be people staring at us (more specifically, our blazers). There was even a security guard who followed us.

After some time, we got really exhausted and disappointed that we did not get anything (because of the price and bargaining), hence we left the place sadly. But after sharing our experiences with our fellow IBSM-mates, I feel that our experience was considered not-that-bad already. Some of them were being chased off or scolded with vulgarities!

Still, I feel that it was an eye-opening experience. It was a totally different culture, different scenario (as we had to bargain/negotiate like we are businessmen) and different environment. I have learnt that we must ADAPT and act accordingly to the situation. 所谓，入乡随俗。这就是如此。There is no point complaining or feeling angry over what that had happened because nothing will be solved. After all, only the best wins!

If I am given another chance to visit this place again, I would use a different approach in handling it.

After "market research"-ing,
went back to hotel,
bathed.
and BEER!
hahahahahaha
With complimentary of Zhujiang brewery which we visited in the day.

drinking session in my room =)

i think we are very suitable spokeswomen

Day 5:
breakfast.
company visit:
Pearl River Piano Factory

one of the grand pianos

I love this shot

it's white! =)
doesn't it look glam?

the instrument that I'd love to play the most

punk rock gals will love this

and stephie played for us!
I believe playing on the grand piano is like.. WOW

Learning points:
1) Marketing strategies should be creative in order to create a lasting impression in the consumers. One of which the company does, is to hold a piano competition. On one hand, it helps to promote their products, on the other, it will simulate people's interest in music.
2) Problems faced when entering a new (overseas) market are:
- Proving that the quality of their products are also good (even when there is a strong competitor)
- Lack of knowledge of the market
Thus, employing an experienced and trustworthy retailer in that country to help open the market.
3) Problems faced on the whole: rising costs, protecting their brand name, and to be even more established.
4) Having a wide network is important in order to market more effectively. Communication is also vital to spread the right information around.

Being an established corporation with such massive production, the Pearl River Piano Company has emerged as a brand name after all these years of stiff competition. We should learn from the entreprenuers' determination, diligence and wisdom to walk though the tough challenges and never stop looking for more opportunities.

travelling time:

edward + george
i miss chewing-gums with them
whenever it's travelling time,
the 4 of us will be chewing and chewing non-stop.
hahaha.

陈家祠:

ppl playing "chapteh"
winnie was invited to play with them.
guess wad.
something unglam happened!!!
wAHAHAHAHAHAHA.
we all luffed.

It's those places which you may only see it in drama
and i gotta see it in real life!

I think it looks very magnificant
some people may find visiting such places boring
but i prefer these cultural visits (i'm a libran ;P)

I sense this studious atmosphere

oops. this wasn't intentional

广州经济大学

A presentation from 乐副教授

In their classroom.

a token with our appreciation!

Sitting in the classroom was a different feeling from the past company visits.
Looking at the powerpoint slides, it really minded me of our lectures!

We learnt that Guangzhou is an important gateway of China, which has an economic growth of 14.1% (that is one-eighth of the country). He also shared the 9 biggest industries:
1) 电讯与通讯
2) 电器机械
3) 石油化工
4) 纺织服装
5) 食物与餐饮业
6) 建材
7) 造纸
8) 医药
9) 汽车

Again, I could not be more amazed about the beauty of having abundant resources. Every country should be aware of its own haves and don't-haves in order to attract the suitable foreign investments to its own country.

On the other hand, China also faces 4 problems:
买房难
看病难
就业难
读书难
Investors might want to look into such business opportunities?

Something happened so 3 of us did not go for shopping.
We finally had a meal "off".
so we rushed for this:

we are SO deprived, can u sense it?

Walked along the pearl river for a while
and we saw ppl acting as beggers
I was also quite worried abt being robbed

Day 6:

breakfast-ed as usual
Before that, Xiao Deng was at the entrance of the restaurant telling us that the temperature dropped to 10 degrees.
He added that 10 degrees is bearable,
but it was raining
AND we were going to somewhere near the seaside,
thus, it would be REALLY cold.
We needed to wear more.

but i didn't haf extra thick clothing
could only depend on andrea's extra cardigan.

can u see that i was REALLY cold?
think i'm e only one in the group who's shivering like mad.

鸦片战争纪念馆:

nice scenery.
but it's VERY cold up there

my hair looks neat here.
andrea lent me her jacket
WOO.
nice smiles =)

WHEE~

miss the good times;