Pet Gazette June 2019 | Page 13

PIF | PET GAZETTE | 13 VIEWPOINT In this month’s column, Nigel Baker CEO of the Pet Industry Federation speaks about the opportunities available in various export markets W ith Brexit in turmoil and neither side managing to find a positive way though the impasse, PIF decided a year ago to investigate other export markets for its members. Following a chance meeting at a trade event, PIF set about investigating the opportunities in the Chinese marketplace, which is home to 84 million dogs and 64 million cats compared to the UK’s nine million dogs and eight million cats. With pet ownership still only 7% of households compared to 45% in the UK, this market certainly needed investigating. Furthermore, the Chinese market is growing at 20% per annum, compared with all the western markets, including the USA, which are only seeing 2% growth. But, I hear you say, it’s China, it’s a long way away, they don’t look after their pets and have no regard for animal welfare. Before continuing, I think it’s worth pointing out my position on this. I am a great believer that if you don’t like something, you shouldn’t just throw stones at it, but get inside the issue and see if you can help fix it. Secondly, if you don’t understand the issue, go and investigate firsthand. Brits visiting China is nothing new, but most visit the Chinese pet trade shows to find products to import to the UK. Very few look the other way to see what the export possibilities are. The reason for this is mainly due to the fact that the Chinese market is difficult to make inroads into. We don’t speak or write the language, and we certainly don’t understand their culture. So, in order to make this work for PIF members, we teamed up with the Chinese company that we met a year ago, formed a joint venture for PIF members and visited China. The hospitality that was extended to us during our stay was second to none. We were looked after by the provincial state governor and his ministers and I struggled to think that if our hosts came to the UK, how we would reciprocate. www.petgazette.biz Every evening a banquet was arranged with a different official hosting it. During the day, our jv partner took us round the facilities that they would use to introduce PIF members’ products to the Chinese market. This included a free trade zone for fast customs clearance for products entering China. My first visit to China in February has now resulted in an agreement being officially signed in May in London for the opening of an Integrated Pet Industrial Park. This is very exciting news as it will facilitate not only fast custom clearance and but also opens the opportunities to the question I posed earlier, animal welfare. With such explosive growth, the Chinese local government is aware they do not have the infrastructure in place to deal with this number of pets, so it is PIF’s intention to introduce not only education to the Chinese market but also pet services. Our Chinese partners have already designated space in the park for a pet grooming school, day care and a vet clinic which they are looking to PIF to help build. This opens up lots of opportunity not only for pet products into China but also pet services. My second visit to China was to a different state and this time we took three PIF member companies with us HOWND, Broadreach Nature and Prins Petfoods from Holland. Unfortunately, Woof and Brew, Natures Menu and the Big Biscuit Company weren’t able to join us. Our joint venture partner had organised a trade stand at the Maritime Silk Road Expo in Fuzhou which is a five day show with 300,000 people visiting Our members’ products were on display and not only were viewed by the Chinese pet owner, but lots of orders were taken by distributors visiting the show. But what was really remarkable was the Chinese media interest in the products on the stand. I must have undertaken 10 interviews with TV and newspapers as to what we were doing in China, and how we were looking to introduce UK companies to the marketplace. There is a huge demand for western pet products with heritage as Chinese pet owners perceive them to be of higher quality to their domestically produced goods. Even the city’s mayor visited the trade stand with an entourage of TV cameras surrounding him. For the companies that were able to join us, the trade mission was eye opening and nothing like anything they had expected. Once again, the regional government offered us all exceptional hospitality. One of the sites we visited was a new animal reception centre they were building for animal imports, which included an exhibition area for school parties and visitors learn about the importance of looking after animals and plants that were native to China and prevent invasive species from entering the region. Real signs of an economy wishing to protect their flora and fauna. The Chinese market offers enormous opportunity for the UK pet industry and PIF is delighted to be part of this initiative. If you want to find out more about PIF in China and the opportunities it brings, please contact the Pet Industry Federation. June 2019