Li Tiantao, president of the Guangdong Chamber of Commerce in Kyrgyzstan | Universal Guangdong Entrepreneurs (2): Seize the critical period of consumption upgrading in Central Asia and build overseas warehouses to open up a new blue ocean

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Editor's note

Guangdong faces the sea three times, and Guangdong businessmen are born to the sea. Especially after the reform and opening up, a group of Guangdong businessmen dared to be the first in the world and took the lead in expanding their business networks around the world. Today, Guangdong businessmen have advanced from being one step ahead to leading the way, from being shrewd and pragmatic to being innovation-driven, and the "new Guangdong businessmen" have a heavy responsibility on their shoulders when building a new development pattern with the domestic circulation as the main body and the domestic and international dual circulation promoting each other. On November 23, Guangdong Council for the Promotion of International Trade (Guangdong Chamber of International Commerce) celebrated its 65th anniversary, and Southern Finance All-Media Group joined hands with Guangdong Council for the Promotion of International Trade to conduct in-depth dialogue with some outstanding Guangdong business representatives, and launched a series of all-media reports entitled "Universal Guangdong Businessmen".

Southern Finance All-media reporter Liu Ningxin and intern Zhang Mingchao reported from Shenzhen

At the end of October, Li Tiantao, chairman of the Kyrgyz Guangdong Chamber of Commerce (Central Asia Guangdong Chamber of Commerce) and chairman of Zhongyuguan Central Asia Resources Group, returned to Guangdong with the latest news of Central Asian trade, reported to the Guangdong Provincial Council for the Promotion of International Trade the latest progress in setting up overseas warehouses in Kyrgyzstan, and also hoped that this trip would communicate and negotiate with domestic e-commerce enterprises and introduce e-commerce platforms to settle in Central Asia.

"A few years ago, the company set its sights on Central Asia, expanded its business in Central Asia and even the Far East, and planned to build dual headquarters in Shenzhen, the oldest special zone in China, and Kashgar, the youngest special zone, and with the development of our trade business in Xinjiang, trade naturally developed to Central Asia, which is geographically similar." Li Tiantao recalled why he went to Central Asia in the first place.

The five Central Asian countries include Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan. In recent years, there has been a demand for consumption upgrading in the Central Asian regional market, and many Guangdong enterprises have developed in the Central Asian region to seize the opportunity period of consumption upgrading and innovative development in Central Asia.

"Dare to be the first, extravagant but not gorgeous" is the spirit of Cantonese businessmen in Li Tiantao's eyes, and the simple nature of Guangdong businessmen who do more and say less, or even do without saying, supported his initial development of the Central Asian market. In the future, Li Tiantao hopes to use the Kyrgyzstan Guangdong Chamber of Commerce to drive more Guangdong enterprises to emerging markets, "The epidemic and the international situation are changeable, people's life and consumption patterns are also changing, online shopping and cross-border e-commerce just give Guangdong entrepreneurs the opportunity of the era, Guangdong itself is the world's factory, e-commerce import and export proportion is among the best in the country, opportunities came into being." ”

From Shenzhen to Central Asia

Li Tiantao's Zhongyuguan Group is the first batch of private enterprises approved by the Shenzhen Municipal People's Government, from the initial 80s and 90s sales of materials to electronic foundry, and then around 2000 to the transformation and upgrading of automobile industrial parks, industrial industrial parks, in recent years, the company has targeted Central Asia.

Initially, the move to Central Asia was due to trade links between companies and Xinjiang. "Xinjiang's geographical proximity to Central Asia has formed an inevitable entry into the Central Asian market, and there are five ports connecting Kashgar to Central Asia alone, and it can be said that the sustainable development of Xinjiang's trade is closely related to Central Asia." Li Tiantao said.

Li Tiantao's initial impression of the Central Asian market was that there were many preconceived consumer concepts in the region, and the right one was the best. "For example, jeans, due to the difference between the body shape of consumers in Central Asia and China, the different versions of jeans products, local consumers generally think that the double-cylinder washing machine is particularly simple and easy to use, the intelligent integrated washing machine is too complicated, and the sales are not good."

Li Tiantao feels that entering the Central Asian market is quite challenging, including local laws and regulations, folk customs and speech cognition, which determine whether he can successfully enter the Central Asian market. "For example, Uzbekistan is carrying out economic reforms, actively improving the business environment and giving more preferential treatment to foreign investment in key areas such as infrastructure, energy, health, education, law and finance. This is both a challenge and an opportunity to access the Central Asian market. Li Tiantao said.

From the geographical point of view, Central Asia is located at the junction of the Eurasian continent and is a transportation hub through the Eurasian continent, and the ancient Silk Road passed through this place, and has always been the necessary place for the east to go out and the south to the north. With the implementation of the Belt and Road Initiative, exchanges and cooperation between China and countries and regions along the Belt and Road have also been deepened.

Since the establishment of diplomatic relations 30 years ago, China's trade with the five Central Asian countries has increased by more than 100 times, and the stock of China's direct investment in the five Central Asian countries has exceeded US$14 billion. Guangdong has a well-developed manufacturing industry and is also a major trading province, and in recent years, trade relations with Central Asia have become increasingly close.

In Li Tiantao's view, Central Asia's own productivity and regional location determine that it is both a consumer market and an entrepot market. "Central Asia's heavy and light industrial base is weak, 90% of the materials are imported, and most of them are imported by China, and the general perception among local consumers is that Guangdong's products are the best." Li Tiantao analysis.

Although there are many Cantonese goods in the Central Asian market, there are not many Cantonese who trade there.

Li Tiantao believes that this is because Guangdong has laid a good foundation in international markets such as Southeast Asia, Europe and the United States, and Guangdong businessmen have become accustomed to taking the "Maritime Silk Road". "However, with the continuous development of international trade in Asia, the international situation is changing, whether it is now or in the future, Central Asia is a direction for the sustainable development of Guangdong businessmen." With good legal and financial affairs, companies can successfully do business in Central Asia. ”

Organized the Kyrgyzstan Guangdong Chamber of Commerce

On March 19, 2011, the first European train was opened. With the normal operation of China-Europe trains, Guangdong businessmen have also ushered in new opportunities for their development in Central Asia.

"Kazakhstan's wheat arrives at mainland coastal ports through the China-Europe train, and then exports to Southeast Asia, and Guangdong's household appliances and daily necessities are also continuously transported to Central Asia through the China-Europe train. The development of China-Europe Express has formed a brand, so that the logistics and transportation between China and Central Asia gradually balance the trade surplus, and it is also developing in a better direction for trading enterprises. Li Tiantao said.

As of the end of July this year, the China-Europe Express has operated more than 57,000 trains, transported 5.3 million TEUs, the heavy container rate reached 98.3%, and the cumulative value of goods was nearly 300 billion US dollars.

The vigorous development of China-Europe Express also allows Li Tiantao to see the "window period" for Guangdong enterprises to trade in Central Asia in the future.

With the support of the Guangdong Provincial Council for the Promotion of International Trade, Li Tiantao prepared to establish the Guangdong Chamber of Commerce in Kyrgyzstan, providing strong momentum for economic and trade exchanges between enterprises in Guangdong and even the Guangdong-Hong Kong-Macao Greater Bay Area and countries in the Central Asian region.

Overseas Guangdong Chamber of Commerce is an overseas Guangdong business cooperation platform established under the guidance of the Guangdong Council for the Promotion of International Trade (Guangdong Chamber of International Commerce), serving overseas enterprises to participate in the construction of the "Belt and Road" and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, helping enterprises "bring in" and "go out", and has promoted the establishment of 37 Guangdong chambers of commerce in the United States, Canada, the United Kingdom, Australia, New Zealand, the United Arab Emirates, Singapore and other countries or regions.

"At present, the Kyrgyz Guangdong Chamber of Commerce has completed the judicial registration and reported to the embassy, with offices, conference rooms and members' home clubs, and the commissioners are actively absorbing members and expanding the team, and in the future, the Guangdong Chamber of Commerce will promote economic and trade and cultural tourism exchanges between Guangdong and Central Asia, and promote cooperation between sister cities." Li Tiantao said.

In Li Tiantao's view, some entrepreneurs in Guangdong want to explore markets and invest in Central Asia, and entrepreneurs in Central Asia are optimistic about the development opportunities of Guangdong and even the Guangdong-Hong Kong-Macao Greater Bay Area, and the Guangdong Chamber of Commerce can play a role in matching and providing assistance to both sides in achieving their goals.

"For example, the Guangdong Chamber of Commerce builds a bridge of communication between members and the government, organizes members to learn laws and regulations, folk customs and language exchanges, and sets up a platform to release government policies and business information, leading the pioneering and rapid development of Guangdong businessmen in Central Asia. At present, the construction of the China-Kyrgyzstan-Ukraine railway is about to start, and we want to enhance Guangdong businessmen's understanding of Central Asia through promotion, accurate docking, so that more Guangdong businessmen can enter Central Asia and bring Central Asian resources back to Guangdong. Li Tiantao said.

(In August 2022, Li Tiantao, president of the Guangdong Chamber of Commerce in Kyrgyzstan, reported to the Chinese Embassy in Kyrgyzstan, photo provided by interviewee)

Open up a new blue ocean of cross-border e-commerce

Compared with the situation when he first arrived in Central Asia, Li Tiantao believes that the consumption in the Central Asian market is upgrading and the business model is also changing.

"Central Asian consumers' awareness of some products is also updating and iterating. For example, home appliances such as air conditioners, the improved products of Gree air conditioners have gained acceptance in the market there, and some preconceived consumer perceptions are now changing. Li Tiantao revealed.

The Kyrgyz Guangdong Chamber of Commerce led the establishment of two overseas warehouses in Kyrgyzstan, one in Osh in the south and one in Bishkek in the north. At present, these two overseas warehouses are only offline sales points, and will be connected to e-commerce platforms in the future to truly realize digital trade.

Li Tiantao sees the digital business opportunities behind this, "The current digital trade in Central Asia is still in its infancy, and local consumers are very yearning for these new consumption methods, but they have not really entered the substantive stage, just simple online shopping, and the future is very large for Guangdong enterprises." ”

He plans to return to China this time to communicate with domestic e-commerce platform companies, trying to introduce some e-commerce platforms into Central Asia and tap into the new blue ocean market, and the expansion plan of overseas warehouses will also drive more enterprises to trade with Central Asia.

"At that time, the layout of the first two overseas warehouses was considered that Kyrgyzstan was closest to the Chinese border and could radiate to several other countries, and with the improvement of these two overseas warehouses, our next step may be to Tashkent, the capital of Uzbekistan, Dushanbe, the capital of Tajikistan, and possibly to Almaty in Kazakhstan." Li Tiantao said.

In addition to the China-Europe train, the construction of the China-Kyrgyzstan-Ukraine railway will also open up a new pattern for the development of the Central Asian market.

After the completion of the China-Kyrgyzstan-Ukraine railway, it will bring many benefits to the economic development of countries along the route, Central Asian products can be transported to China's huge market, Chinese goods can also be transported to Central Asia and the wider region, and countries along the route can also obtain the benefits of transit fees.

"The China-Kyrgyzstan-Ukraine railway has now entered the end of exploration, and it is expected that the exploration will be completed in May next year, and it may enter the substantive construction stage." The opening of the China-Kyrgyzstan-Ukraine railway has brought more benefits to Chinese products, especially Guangdong products, entering the Central Asian market, making the transportation time faster and the cost lower. Li Tiantao said.

For Guangdong enterprises that hope to explore the Central Asian market, Li Tiantao suggested that they should first identify the market positioning, respect and abide by the rules of the market game, step by step, find the feeling and then run quickly; Secondly, explore the combination of national culture and international elements, launch targeted product designs, and form brand personality; In addition, we should make full use of geographical advantages and various resource convenience conditions, follow the trend, ride on the trend, make a difference, and make breakthroughs.

"The rapid development of Central Asia is an obvious fact, and it is also a fact that Guangdong's economy and trade complement each other, and in the future, Guangdong enterprises should continue to deepen exchanges and understanding with Central Asian enterprises, and gradually establish cooperative relations in a new era of mutual respect." While adhering to principles, it is necessary to respond flexibly, and the economic and trade exchanges between Guangdong and Central Asia will become smoother and smoother in the future. Li Tiantao said.

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