Use CAEXPO To Penetrate China's 2nd And 3rd Tier Cities: Matrade

KUALA LUMPUR, April 24 (Bernama) -- Small and medium enterprises (SMEs) keen to penetrate the China market should leverage on the China ASEAN Expo (CAEXPO 2019) in Nanning, the gateway to second- and third-tier cities. Malaysia External Trade Development Corporation (MATRADE) deputy chief executive officer, Sharimahton Mat Saleh, said businesses often overlook opportunities offered by these markets that still require various developments. "China has a population of 1.4 billion people and often we overlook that there are various pockets of opportunities within China. "It’s the largest export market for the 10th consecutive year (for Malaysia) and is still growing at about eight per cent yearly. There is a lot more for us to discover yet," she said during a roadshow held Wednesday to promote the expo here. Sharimahton said by focusing on these markets, SMEs should be able to understand their needs and promote the right products. "Nanning alone has a population of 6.9 million people, with consumer demand growing significantly. Cities like Nanning provide a good entry for Malaysian companies to make their foray into the Chinese market," she said, adding that first-tier cities such as Beijing and Shanghai are too crowded and competitive for newcomers. Other potential second-tier markets are Wuhan, Hangzhou and Zhengzhou, she said in urging businesses to participate in the 16th edition of CAEXPO, to be held from Sept 20 - 23, 2019. In the limited space at the Malaysian pavilion comprising 180 booths, the focus sectors to be promoted are food and beverages, health and wellness, lifestyle, franchising and professional services. "For the services sector, we will focus on services with high potential such as education, tourism, healthcare, franchising and logistics," said Sharimahton. So far, 150 companies have applied to join CAEXPO 2019, she said. According to her, more than 300 companies apply every year but priority would be given to first-time exhibitors. Sharimahton also urged companies to take advantage of the collaborations that MATRADE has established with China-based e-marketplaces such as Alibaba.com, Jinbaomen and Taobao.com to tap the market, which is now moving to cash-free. "E-commerce or payment using phone is becoming more prevalent in China and our companies need to be equipped with that technology," she explained. CAEXPO vice secretary general, Yang Yan Yan, said the Malaysia pavilion is among top three pavilions of ASEAN countries in terms of biggest sales and popularity among visitors and trade buyers. She said beside China and 10 ASEAN countries, more than 30 countries participated in the last CAEXPO. A total of 11,000 buyers from 70 countries visited the 2018 expo. Yang said CAEXPO is one of key initiatives under the Belt and Road Initiative (BRI) with ASEAN, an important participant in the BRI. Poland has been invited to be the special partner of this year's CAEXPO, with the aim of facilitating access to markets in the European Union. "They have accepted the invitation and it is another breakthrough for this initiative, as the expo will provide more business opportunities for ASEAN countries other than the ones in China," she added. -- BERNAMA