Danish Showroom

koda.ee

Danish Showroom

Danish Showroom

Shanghai Co. Ltd

A platform with unique facilities for focused promotion

of high quality food and beverages to the Chinese

market opened 17 November 2011


Bo Engby

CEO

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Appointed CEO at Danish Showroom Shanghai to be

posted to China August 2013

Export Manager at Carletti A/S

January 1992- August 2013 (21 years)

Marketing Manager at Jacobsen Bakery Ltd

1988-1992 (4 years)

Sales Manager at Hatting Bakery A/S

1984-1988 (4 years)

Sales Manager south- and central Europe at

Stimorol A/S

1980-1984 (4 years)

BO


Franz Gammelgaard-Schmidt

Partner

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Partner and co-founder at Danish Showroom

(Shanghai) Co. Ltd

Chairman of the board and partner/co-founder at Mille

Dairy (Shanghai) Co. Ltd

Consul Commercial (posted diplomat) Ministry of

Foreign Affairs of Denmark, Royal Danish Consulate

General Shanghai

2009-2012

Partner and General Manager at Bruun Rasmussen

Properties A/S

2004-2009

Partner and certified real estate agent at Livingstones

Real Estate Agents

2000-2004


It is not a location for retail business

and the Showroom is targeted invited

professional B2B customers


Started up in an former noodle

restaurant by Hongqiao Airport terminal

1

Driving'guidance:''


Appointed by Shanghai Government as

official authorized Danish product Center


Official opening 17th

November 2011 by the Danish

Ambassador to China - the

Danish Consul General - and

Shanghai Government


Danish Showroom

Shanghai Co. Ltd

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Supported by the Ministry of Foreign

Affairs of Denmark in a coordinated

effort with the Royal Danish Consulate

General in Shanghai

Services as an import

agent handler in China

taking care of logistics

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Danish Showroom is by Shanghai

Municipality appointed as the officially

authorized Danish Product Center in

Shanghai

Providing Danish producers an exhibition

place to professional Chinese customers,

distributors and whole sales buyers

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Applying and

providing Chinese

import licenses

Assisting in Chinese

labeling

Customs clearance

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Approaching hypermarkets,

supermarkets, star rated international

hotels, restaurants and catering directly

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Health inspection

and quarantine

Provider of bonded

warehouse facility

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Hosting of tasting and cooking events

performed by Celebrity Chefs towards

invited Chinese industry stakeholders and

VIPs to generate awareness and media

exposure

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Provider of

freeze‐house facility


Welcome to Estonia


What we hope for..

the attention of the Chinese consumers


Some lessons learned

Big market does not necessarily equals big opportunity

Good “Guanxi” does not mean good customer relationship

Selling to the distributor does not equal to selling to the consumer

Popular products in Estonia may not be popular in China


The reality:

Fierce competition from foreign brands

With a large presence from many countries

The USA

Australia

The UK

France

Holland

Switzerland

Germany


Fierce competition

Big companies invest big amount in

promotion and advertising

The market pioneers entered the Chinese market

dozens of years ago


Expensive channel cost

Lawson

• Open an account cost RMB 33.000

• Each bar code RMB 15.000

• Logistic and others 10%

• Annual cost RMB 5.000

City Shop

• Opening account cost RMB 20.000

• Each bar code RMB 500

• Logistic cost 10%

• Management cost 30%


Some disadvantages

‣ Fierce competition

‣ Expensive products

‣ Not Well-known products except for some individual brands

like Kjeldsen (DK) Carlsberg (DK), Arla (DK)

‣ Long transport time

‣ There is no promotion to follow the products

‣ Only a few products are available for the Chinese consumer

Danish Showroom is only the B2B platform

‣ The Chinese distributors also need the promotion to follow

with the products

‣ Small and middle size companies cannot afford to invest the

needed promotion


We believe the path to success is

united effort & long term commitment

Joint promotion and

advertising:

Promoting Estonian Food as

concept instead of promoting

single brands

Joint PR events, brochures,

advertising, etc.

Work with support from

Estonian organizations:

Approach consumers

directly

Close co-operation with

Chinese distributors

Distributors with large

supermarket chains


Our current direct distributions channels

3 well-establish distribution channels has been identified

– all 3 within different consumer segments

1. SHANGHAI FIRST FOOD holds a wide selection of international and Chinese

products – all chosen because of the medium to high quality of the product

2. ORIENTAL SHOPPING CENTER a high-end luxurious compartment store

encompassing as well international as Chinese brands

3. NGS1685(NGS) has 4 large shop brands in Shanghai with estimated 3500 shops, the

most famous are All 'days and KEDI. These stores are similar to the 7-Eleven

concept. NGS also owns around 100 big supermarkets


Our agreement with First Food

Signed with the Danish Minister of Agriculture as witness

• Opening account for each

Danish company RMB

2.000

• Each bar code : RMB

1.000

• Logistic cost and others

10%

• Payment 75 days

• Presence in their Flag

ship store and 15 other

shops


Our agreement with Oriental Shopping Center

Tentative

• Opening account for each

Danish company : RMB

20.000/shop

• Each bar code : RMB 800

• Payment amount: 25% of

the retail price

• Payment 60 days

• Presence in their Flag

ship store and other 2

shops


Our agreement with NGS supermarket

NGS will purchase directly

from the Danish producers if

they can approve of the

products:

Starting now with cookies....

Plan to set up a Danish food

zone in their 100

supermarkets. (should follow

their normal policy: Opening

account: RMB 1 million…..


Tentative co-operation (First Food)

THE PRODUCER/EXPORTER

• Delivers the products to China

• Pays the import tax

• Pays the import permission cost

including Chinese label cost

• Set the retail price and price to First

Food

• Pay the cost from First food

DANISH SHOWROOM SHANGHAI

CO. LTD.

• Assists in logistics from DK to

China

• Applies the import permission and

custom clearance

• Delivers the products to First food s

warehouse

• Sets up the payment platform with

First food and the Danish company

• Arranges the promotion


Tentative co-operation model

Estonia

Sourcing

SHANGHAI

Selling

Estonian

Food

Producers

Shanghai

Retailers

Payment

Handling

Estonian Food

Association

Danish

Showroom

Logistics

Warehouse


Axel Christian Tesdorpf Castenschiold:

Chairman of DC Companys. Chairman of LFA (Football club),

DGH, Rapsol ApS, Patriotisk Selskab and Guldborgsund Frugt.

Landlord of the Estates Pandebjerg and Ny Kirstineberg.

Steve Wang:

Co-Chairman of DC Companys. Board member of Chinaland

(Hong Kong) Group, Shenzhen Xinhengli Industry Co., Ltd,

Shanghai Chinaland Co., Ltd, and Titan Trade Company ApS

(Denmark)

Franz Gammelgaard-Schmidt:

Partner of DC Companys, Chairman of Mille Dairy (Shanghai)

Co. Ltd

Gangquan Trade

(Shanghai) Co. Ltd.

25 %

DS Mælk A/S

25 %

DC Companys

Copenhagen

50 %

Mille Baby A/S

50 %

Mille Dairy (Shanghai)

Co. Ltd.

50 %

25 %

25 %

Danish Showroom

(Shanghai) Co., Ltd

50 %

Shanghai Chinaland

Co. Ltd

IFU

(Danish Government)


Thank you for your attention

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