Ashley O’Sullivan Aisling Donagh Laura Reddy

 China is the world’s second largest economy.  It has a population of over 1,350,000,000 bn.  It is expected to be Ireland’s fourth biggest trading partner by 2030.

 Chinese Business culture is based on relationships.  It is a complex, long and slow process.  Chinese Business meetings are held over a Chinese banquet.  Chinese Business partners build their relationship by ‘Giving Face’.

 Chinese Business’s like good credentials from potential business partners.  Many SME’s have withdrawn from China because they tried to take it on as a whole.  Better to focus on Regions, Provinces and Cities.  There are First, Second and Third Tier Cities.

 Health conscious and aspire to live a healthy lifestyle.  Relatively high population of celiac sufferers.  Large population with medium to high disposable incomes.  Demand for bread and baked products.  High level of supermarket shoppers that like ready to eat products.  Good relations between home and host Country.

 Xi Jinping is the President.  Communist party is main political party.  Relative stability.

 Communist Philosophy.  But not in all aspects of life.  Like western Brand but are still proud of there history and culture.

 China and Ireland have a good relationship.  Strong links with education.  This is good for Business between the two country.  There are also strong Business links.

 One of the biggest economic powers in the world.  Two systems of economic management.  In 2201 China joined the World Trade Organization. (WTO)

 There are three types of Business Structures in China and choosing the right one from the beginning is imperative. 1. Representative Office (RO) – Easy to operate and maintain, but are limited in operational scope. Can become very costly in the long-run. Taxed on Gross Expenditure. 2. Service Office (SO) – Easiest form of limited liability company to set up. Taxed on Profits. 3. Trading Company (TC) - This allows you to engage in importing and exporting activities as well as domestic distribution (i.e. retail, wholesale and franchising) in China.

 Corporate income tax (25%)  Withholding tax (20%)  Value-added tax (general tax-payer 17% and small taxpayer 3%)  Business tax (3-5%)

 Food exports require a certificate which are issued by the Environmental Health Service of the HSE.  Nutritional labelling requirements in China are the same of that in Ireland.  The label will have to be transcribed into Chinese.

 Advertising must be truthful and accurate.  It cannot be harmful to minors etc.  All TV and Radio media is owned by the Government, which may present a challenge for Bfree.

 Ethnic group: Han Chinese 92%Han Chinese 92%  Religion: Buddhism  Language: Mandarin Mandarin

 Education  Compulsory  Enhance worth and career  Relationships  Family and friends  Grouped  Rely on for advice

 Very important  3 meals a day  Good quality and healthy and healthy  Homemade

 Not popular  Only for breakfast  Homemade  Bakery

 78% of shoppers decide on a product in store  37% decide from promotion  22% stick to their original list before entering the store.

 China has experienced rapid Economic Growth in recent years.  China’s Economic Growth percentage was 7.7% in  China’s slowdown has been accompanied by a number of worrying facts such as; inflation pressure, booming house prices and increasing local Government debt.

 GDP growth is averaging at about 10% a year (IRE 7.7%).  This has lifted 500 million people out of poverty.  China has an unemployment rate of 4.1% (Ireland’s 11%).  A labour force of million.  Over 1 billion people within the working age of 15 to 64 years old.

 While economic growth is slowing down, people’s income is much higher now as a result.  Rural areas are developing more and more due to urbanisation.  The effects of this are resulting in peoples consumption increasing.  A lot of people in China are no longer hungry.  Statistics show people rising out of poverty are spending their new disposable income on food.

ImportsExports  Worth 1.6 Trillion  Oil, Fuel, Machinery, Medical Equipment, and Motor Vehicles  South Korea 9.4%  Japan 8.3%  Taiwan 8%  US 7.8%  Australia 5%  Germany 4.8%  Worth 1.7 Trillion  Electrical goods, data processing equipment, apparel, textiles, and radio/telephone handsets.  Hong Kong 17.4%  US 16.7%  Japan 6.8%  South Korea 4.1%

Marketing infrastructureUtilities needed  China has the highest number of internet users in the world.  People mostly use mobile and tablet devices.  All broadcast media is owned by the Communist party or government agency.  All foreign made TV programs must be approved.  BFree can be eaten fresh or toasted.

 Population of 1,367,040,000 compared to Ireland which is 4.59 million  Life expectancy of people in China is 75.5 years Age Distribution Years% %

 Since 2013 China has relaxed the one child policy  Over 50% of Chinese people are living in urban channels  This is set to increase to 2.85% by 2015

 Bfree has a great opportunity within the Chinese market as healthy living is on the rise.  BFree needs to build its credibility up before looking to enter China.  Bfree may need to alter its ingredients to suit the Chinese market, for example, adding in wheat but keeping its products Gluten Free.

 Adapt product range: Bfree could have a range of products to target the freshly baked target audience wants  Focus on one region of China  Market the products health benefits and encourage word of mouth marketing among customers  In store marketing is crucial