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The Middle East - a mysterious and unfamiliar region, because it is located in the combined regions of Europe, Asia, and Africa, has been a "matchable land" for producers of all countries since ancient times. Compared with Europe, the United States, and Japan, the Middle East is a relatively new trading area. Coupled with its unique religious colors and a single oil economy, many Chinese companies have not been able to open their hands and feet to open this market. After the financial crisis, the import demand of developed countries such as the United States, Europe, and Japan fell, and more and more foreign traders began to shift their sights to the Middle East with unlimited business opportunities. Next, let us go into the Middle East market together.
Market characteristics The Middle East market usually refers to nine countries and surrounding Arab countries surrounding the Persian Gulf and Ara Hai with a total population of about 400 million. The per capita annual income ranges from $30,000 to $30,000 in the United Arab Emirates and Kuwait to Iran, Iraq and Yemen. The annual per capita income ranges from 5 to 6 thousand US dollars. The light industry, daily use, electronics, and clothing in these Arab countries basically depend on imports. The price requirements of the products are medium and low, and the grades are not very high. At the same time, these parts of the region can almost be characterized as purely pure consumption. China, as the world's largest light industry, electrical products, clothing and Other major products, has an absolute advantage over the entire Middle East market.
Speaking of the Middle East, we cannot but mention Dubai in the United Arab Emirates. Dubai is one of the 7 emirates in the United Arab Emirates. Located at the eastern end of the Arabian Peninsula, Dubai is strategically located at the midpoint of the "five seas and three continents," and is a major transportation hub and trade hub for the East and West. Tens of thousands of containers are re-exported through Dubai each day. They are the largest ports in the Middle East. In Dubai, you can find businessmen in 120 countries around the world. They travel throughout the Middle East and their home countries throughout the year to engage in commodity trade. According to incomplete statistics, the UAE's annual trade volume is about US$80 billion. Due to the scarcity of natural resources, other products besides petroleum and natural gas, imports from industrial raw materials and equipment to civilian life goods are all dependent on imports. Therefore, the UAE government has always been open. Free trade policy, no trade barriers, no foreign exchange control and its regulatory agencies, authorized banks can obtain foreign exchange without restrictions, no levies on profits tax and business tax regulations of companies or enterprises, no income tax, value added tax, consumption tax and intermediate links For various taxes, profits can be freely exported. More than 80% of goods in and out of the Middle East are transported through Dubai and radiated to most countries in Africa. The radiation population reaches 1.3 billion.
In 2008, the annual trade volume between the Middle East and China reached US$240 billion, and the export value increased from No. 8 to the current No. 4. Experts predict that this trend will continue until 2020.
Case Interpretation The following is the Middle East market situation shared by friends of Made-in-China.com:
Share a: Zhejiang Ningbo A company is a wooden toy-based manufacturers, Du manager said that the company currently has two Saudi wholesalers with large purchases, low-priced products, quality requirements, quantity Very large, relatively low profits, mainly relying on volume. “The average age of consumers in the Middle East is quite young. In Saudi Arabia, for example, children under the age of 14 account for more than 40%, so the demand for toys is large. Before 2007, most of our exports were transferred by Hong Kong trading companies. Now we Domestic manufacturers also began to deal directly with the Middle East merchants.†Du Manager shared: “We have been walking the low-end line in the past two years, in 2009 our main goal is to develop some high-end toys, although the proportion of high-end products in the Middle East is not large However, we are confident that we can occupy this small market. At the same time, we want to form our own brand line and wait for the development of the developed markets to take off, and then take these high-end products to participate in the competition."
Share two: Zhejiang Jinhua B company's main products are hardware tools. The company has been in touch with the Middle East market since 2002, but it has always been promoted by participating in the exhibition. In May 2008, General Manager He saw the booth of China Manufacturing Network at the Dubai International Hardware Exhibition in the Middle East. After a detailed consultation and inspection, he joined the company. China Manufacturing Network this platform, one year down through the China Manufacturing Network traded 2 million US dollars in the Middle East orders. "We are still very satisfied with the effectiveness of the promotion of China Manufacturing Network. Of course, we can not do without the experience accumulated in the Middle East market and Middle East customers accumulated by us for so many years, so we can grasp each enquiry very well."
Share 3: Mr. He is a salesman of Guangdong Foshan C Company. The company mainly produces indoor furniture. "After the financial crisis last year, our orders in Europe and America have shrunk dramatically, so we decided to open up new markets. The Middle East has become our first choice. Our general manager also personally went to the Middle East and discovered that the furniture there is mainly imported, and the furniture market in the Middle East In Italy, Italy is the most powerful furniture importer, followed by the United Kingdom and France. However, Chinese products are constantly gaining market share with the advantage of high quality and low price.†Mr. Ho said: “The inspection found that the Middle Eastern people do not have furniture. What special requirements, consumers like to have a wide range, different styles of furniture have their supporters, Chinese-style furniture is no exception.Although the Middle East prefers handmade furniture such as Italy, but also need large quantities The production of affordable furniture in order to adapt to large-scale requirements, so we will position the Middle East market at the low end of the line.The current order is still very stable every month, although the product profit is not as high as the European and American markets, but with the surrounding counterparts Compared to the situation, we have to say that the Middle East market is very good to help us through This crisis. "
Share 4: Jiangsu Nantong D Fabric Co., Ltd. is a company mainly engaged in the production of home textile fabrics. When contacting the manager Wang of the Ministry of Foreign Trade, the other party stated that the company is loading containers. This shipment is a batch of 60,000 meters of home textile cloth sent to Saudi Arabia. . "Our company's home textile fabrics are mainly exported to foreign markets, and about 70% of them are exported to the United States. Affected by the international financial crisis, the export volume has been declining since last year. Therefore, timely adjustment of the market has become an urgent task for us. After careful comparison, we have looked In the Middle East market, the home textile market in the Middle East is basically dependent on imports, and the demand is large. Secondly, compared with the United States, the Middle Eastern customers have a shorter period of orders. At the same time, the samples sent from the Middle East are often earlier than the US customers. Orders are placed for half a year.†Mr. Wang said that the company is currently paying particular attention to online inquiry from the Middle East region made by China. In the first half of 2009, four orders from the Middle East have been closed, and one of the customers has returned to the bill for the second time. “At the end of June, the company just did a statistic that the rate of our exports to the Middle East market has increased from 5% to 30%.†Manager Wang also reminded: “The product structure needs to be adjusted in time when developing new markets, such as US customers in home textile fabrics. With respect to nature and natural colors, consumers in the Middle East prefer a variety of large and small prints, and they prefer gold, gold and other gorgeous colors."
It is very important for the character of the Middle East businessman to enter a regional market and learn about the local culture.
1. Middle Eastern businessmen are impatient. They are very sensitive to the consistency of sample and quality for the normal trade delivery deadline card. Once negligence delays delivery and quality problems, the supplier does not have to face a price reduction or a claim. Is very important.
2. Middle Eastern businessmen are smart, they show their friendly enthusiasm to any customers, treat people enthusiasm, do not show contempt, but usually their words are flattering, involving key factors such as price, if you can not convince him of reasons to convince him The price will not retreat. It is recommended that when negotiating a contract, some records of recent transactions can be taken directly to prove their supply capacity and price standards.
3. Middle Eastern businessmen are more concerned with their friends, and good relationships have a crucial influence on the success of the business. Therefore, the daily friendly exchanges are essential.
4. Middle Eastern businessmen like to bargain more than prices themselves. However, when it is told that there is a deadline, the other party will often compromise and may prompt the order to be placed as soon as possible.
Matters needing attention Although there are still some deficiencies in the Middle East market, such as merchants have both money and stingy, low efficiency and so on, but it still attracts more and more Chinese companies to go gold. China Manufacturing Network recommends that you pay attention to the following matters when developing the Middle East market:
1. Fully prepared - carefully and carefully prepare for all development of the market, carefully put good quality, pay attention to the product's regional, packaging, characteristics, in the contract, clear the various terms and responsibilities.
2. Pay attention to details - Respect Muslim religion in the Middle East, try not to mention GOD, not to mention Merry Christmas or send related cards. When entertaining and giving gifts, be careful not to send taboos like alcohol. In the Middle East, 13 is a taboo number, while 3, 5, 7 and 40 have positive meanings.
3. Carefully study - take the initiative in negotiation, understand the characteristics and advantages of the product in detail, select local reputable market developers and agency companies, and try to find out more about the customer's comprehensive information through negotiations with local dealers when negotiating with Middle Eastern businessmen. .
4. Strive to open up - maintain a good relationship with local agency companies and customers, pay attention to inquiries from the Middle East and work hard to follow up, receive timely reply after receiving an inquiry, and preferably with a quote. (At present, the Middle East market is fiercely competitive. Too late to reply is very likely to lose business opportunities.) More contacts with customers in the Middle East, more understanding of the local market, have a good idea and a good relationship.
5. Pay attention to protection--We must also pay attention to the protection of intellectual property rights in international trade. We must not collide with other people's guns. We must also do a good job of registration and protection for our own proprietary technologies. Especially for some western medicine industries, we must be cautious in tripping and avoid causing The prosecution of the third country.
6. Prudent settlement - even if it has established a trust relationship with the Middle Eastern businessman, it is best not to release the goods easily, so as to avoid losses due to the other party can not pay the purchase price. If you have an office in the Middle East, things are very easy to solve: pay the deposit first, then pay the balance after receiving the bill of lading, and the bill of lading will be delivered to the client before you arrive at the office, so that there is basically no risk; there is no suggestion before using the office. /T or L / C, Middle Eastern businessmen are not very accustomed to using the L / C method. Smaller amounts prefer to use the former T / T; large amounts generally use the deposit in combination with T / T.
7. Preventing Risks - The Middle East is the world's second largest trade fraud group after West Africa. Exporters need to keep their eyes open, strictly abide by trade rules, and adopt trade methods favorable to themselves.
8. Embassy Certification - Documents exported to the Middle East often require documents and other materials to be certified at the embassy, ​​and sometimes some buyers will ask for commission requirements. Exporters should be good at analyzing the situation and acting on board.
Market characteristics The Middle East market usually refers to nine countries and surrounding Arab countries surrounding the Persian Gulf and Ara Hai with a total population of about 400 million. The per capita annual income ranges from $30,000 to $30,000 in the United Arab Emirates and Kuwait to Iran, Iraq and Yemen. The annual per capita income ranges from 5 to 6 thousand US dollars. The light industry, daily use, electronics, and clothing in these Arab countries basically depend on imports. The price requirements of the products are medium and low, and the grades are not very high. At the same time, these parts of the region can almost be characterized as purely pure consumption. China, as the world's largest light industry, electrical products, clothing and Other major products, has an absolute advantage over the entire Middle East market.
Speaking of the Middle East, we cannot but mention Dubai in the United Arab Emirates. Dubai is one of the 7 emirates in the United Arab Emirates. Located at the eastern end of the Arabian Peninsula, Dubai is strategically located at the midpoint of the "five seas and three continents," and is a major transportation hub and trade hub for the East and West. Tens of thousands of containers are re-exported through Dubai each day. They are the largest ports in the Middle East. In Dubai, you can find businessmen in 120 countries around the world. They travel throughout the Middle East and their home countries throughout the year to engage in commodity trade. According to incomplete statistics, the UAE's annual trade volume is about US$80 billion. Due to the scarcity of natural resources, other products besides petroleum and natural gas, imports from industrial raw materials and equipment to civilian life goods are all dependent on imports. Therefore, the UAE government has always been open. Free trade policy, no trade barriers, no foreign exchange control and its regulatory agencies, authorized banks can obtain foreign exchange without restrictions, no levies on profits tax and business tax regulations of companies or enterprises, no income tax, value added tax, consumption tax and intermediate links For various taxes, profits can be freely exported. More than 80% of goods in and out of the Middle East are transported through Dubai and radiated to most countries in Africa. The radiation population reaches 1.3 billion.
In 2008, the annual trade volume between the Middle East and China reached US$240 billion, and the export value increased from No. 8 to the current No. 4. Experts predict that this trend will continue until 2020.
Case Interpretation The following is the Middle East market situation shared by friends of Made-in-China.com:
Share a: Zhejiang Ningbo A company is a wooden toy-based manufacturers, Du manager said that the company currently has two Saudi wholesalers with large purchases, low-priced products, quality requirements, quantity Very large, relatively low profits, mainly relying on volume. “The average age of consumers in the Middle East is quite young. In Saudi Arabia, for example, children under the age of 14 account for more than 40%, so the demand for toys is large. Before 2007, most of our exports were transferred by Hong Kong trading companies. Now we Domestic manufacturers also began to deal directly with the Middle East merchants.†Du Manager shared: “We have been walking the low-end line in the past two years, in 2009 our main goal is to develop some high-end toys, although the proportion of high-end products in the Middle East is not large However, we are confident that we can occupy this small market. At the same time, we want to form our own brand line and wait for the development of the developed markets to take off, and then take these high-end products to participate in the competition."
Share two: Zhejiang Jinhua B company's main products are hardware tools. The company has been in touch with the Middle East market since 2002, but it has always been promoted by participating in the exhibition. In May 2008, General Manager He saw the booth of China Manufacturing Network at the Dubai International Hardware Exhibition in the Middle East. After a detailed consultation and inspection, he joined the company. China Manufacturing Network this platform, one year down through the China Manufacturing Network traded 2 million US dollars in the Middle East orders. "We are still very satisfied with the effectiveness of the promotion of China Manufacturing Network. Of course, we can not do without the experience accumulated in the Middle East market and Middle East customers accumulated by us for so many years, so we can grasp each enquiry very well."
Share 3: Mr. He is a salesman of Guangdong Foshan C Company. The company mainly produces indoor furniture. "After the financial crisis last year, our orders in Europe and America have shrunk dramatically, so we decided to open up new markets. The Middle East has become our first choice. Our general manager also personally went to the Middle East and discovered that the furniture there is mainly imported, and the furniture market in the Middle East In Italy, Italy is the most powerful furniture importer, followed by the United Kingdom and France. However, Chinese products are constantly gaining market share with the advantage of high quality and low price.†Mr. Ho said: “The inspection found that the Middle Eastern people do not have furniture. What special requirements, consumers like to have a wide range, different styles of furniture have their supporters, Chinese-style furniture is no exception.Although the Middle East prefers handmade furniture such as Italy, but also need large quantities The production of affordable furniture in order to adapt to large-scale requirements, so we will position the Middle East market at the low end of the line.The current order is still very stable every month, although the product profit is not as high as the European and American markets, but with the surrounding counterparts Compared to the situation, we have to say that the Middle East market is very good to help us through This crisis. "
Share 4: Jiangsu Nantong D Fabric Co., Ltd. is a company mainly engaged in the production of home textile fabrics. When contacting the manager Wang of the Ministry of Foreign Trade, the other party stated that the company is loading containers. This shipment is a batch of 60,000 meters of home textile cloth sent to Saudi Arabia. . "Our company's home textile fabrics are mainly exported to foreign markets, and about 70% of them are exported to the United States. Affected by the international financial crisis, the export volume has been declining since last year. Therefore, timely adjustment of the market has become an urgent task for us. After careful comparison, we have looked In the Middle East market, the home textile market in the Middle East is basically dependent on imports, and the demand is large. Secondly, compared with the United States, the Middle Eastern customers have a shorter period of orders. At the same time, the samples sent from the Middle East are often earlier than the US customers. Orders are placed for half a year.†Mr. Wang said that the company is currently paying particular attention to online inquiry from the Middle East region made by China. In the first half of 2009, four orders from the Middle East have been closed, and one of the customers has returned to the bill for the second time. “At the end of June, the company just did a statistic that the rate of our exports to the Middle East market has increased from 5% to 30%.†Manager Wang also reminded: “The product structure needs to be adjusted in time when developing new markets, such as US customers in home textile fabrics. With respect to nature and natural colors, consumers in the Middle East prefer a variety of large and small prints, and they prefer gold, gold and other gorgeous colors."
It is very important for the character of the Middle East businessman to enter a regional market and learn about the local culture.
1. Middle Eastern businessmen are impatient. They are very sensitive to the consistency of sample and quality for the normal trade delivery deadline card. Once negligence delays delivery and quality problems, the supplier does not have to face a price reduction or a claim. Is very important.
2. Middle Eastern businessmen are smart, they show their friendly enthusiasm to any customers, treat people enthusiasm, do not show contempt, but usually their words are flattering, involving key factors such as price, if you can not convince him of reasons to convince him The price will not retreat. It is recommended that when negotiating a contract, some records of recent transactions can be taken directly to prove their supply capacity and price standards.
3. Middle Eastern businessmen are more concerned with their friends, and good relationships have a crucial influence on the success of the business. Therefore, the daily friendly exchanges are essential.
4. Middle Eastern businessmen like to bargain more than prices themselves. However, when it is told that there is a deadline, the other party will often compromise and may prompt the order to be placed as soon as possible.
Matters needing attention Although there are still some deficiencies in the Middle East market, such as merchants have both money and stingy, low efficiency and so on, but it still attracts more and more Chinese companies to go gold. China Manufacturing Network recommends that you pay attention to the following matters when developing the Middle East market:
1. Fully prepared - carefully and carefully prepare for all development of the market, carefully put good quality, pay attention to the product's regional, packaging, characteristics, in the contract, clear the various terms and responsibilities.
2. Pay attention to details - Respect Muslim religion in the Middle East, try not to mention GOD, not to mention Merry Christmas or send related cards. When entertaining and giving gifts, be careful not to send taboos like alcohol. In the Middle East, 13 is a taboo number, while 3, 5, 7 and 40 have positive meanings.
3. Carefully study - take the initiative in negotiation, understand the characteristics and advantages of the product in detail, select local reputable market developers and agency companies, and try to find out more about the customer's comprehensive information through negotiations with local dealers when negotiating with Middle Eastern businessmen. .
4. Strive to open up - maintain a good relationship with local agency companies and customers, pay attention to inquiries from the Middle East and work hard to follow up, receive timely reply after receiving an inquiry, and preferably with a quote. (At present, the Middle East market is fiercely competitive. Too late to reply is very likely to lose business opportunities.) More contacts with customers in the Middle East, more understanding of the local market, have a good idea and a good relationship.
5. Pay attention to protection--We must also pay attention to the protection of intellectual property rights in international trade. We must not collide with other people's guns. We must also do a good job of registration and protection for our own proprietary technologies. Especially for some western medicine industries, we must be cautious in tripping and avoid causing The prosecution of the third country.
6. Prudent settlement - even if it has established a trust relationship with the Middle Eastern businessman, it is best not to release the goods easily, so as to avoid losses due to the other party can not pay the purchase price. If you have an office in the Middle East, things are very easy to solve: pay the deposit first, then pay the balance after receiving the bill of lading, and the bill of lading will be delivered to the client before you arrive at the office, so that there is basically no risk; there is no suggestion before using the office. /T or L / C, Middle Eastern businessmen are not very accustomed to using the L / C method. Smaller amounts prefer to use the former T / T; large amounts generally use the deposit in combination with T / T.
7. Preventing Risks - The Middle East is the world's second largest trade fraud group after West Africa. Exporters need to keep their eyes open, strictly abide by trade rules, and adopt trade methods favorable to themselves.
8. Embassy Certification - Documents exported to the Middle East often require documents and other materials to be certified at the embassy, ​​and sometimes some buyers will ask for commission requirements. Exporters should be good at analyzing the situation and acting on board.
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