The House of Olive Oil in China® (H3O) operates in China optimally as your sales
and marketing partner in having showrooms, sales and reception offices with
innovating promotion, distribution, and is facing increasing expenditures for an
existing sales force, advertising, and educational promotion relative to the products
we carry during the dead season. Another problem we are facing is we need a wider
range of products hence we can make H3O to carry more values to justify our
planned intensive marketing effort. At this stage we are seeking committed companies
which match our own commitments to win the world’s fastest growing market. We
wish to identify companies who know the status quo of entering China is not to
participate in a few trade shows and dream of finding an importer. This is why skype
meeting for me is so important and I personally take up this task at the convenience of
you time zones.

We wish to discuss with only companies which are willing to invest realistic time and
resources to join us and to avoid companies with just passing interest. This is also
protecting us as many lessons were learned from our past experiences. We simply
cannot count how many opportunities we have lost before when there are so many
deficiencies for Chinese buyers to import and so many deficiencies for the suppliers
to export. Definitely, we will not want this to happen to us again.

Entering China for foreign companies will require you to have the basics like you
have in your home country. For example, you will need your own sales and marketing
department with full size showroom to start with. And for a market the size of China
you will need advertising to help the market to find you. So, just this alone, you can
see we are very honest with the participation fee.

Currently H3O maintains a virtual office in Hong Kong and a 200 square meter
Reception & Office in mainland China in the city of Zhuhai, adjacent to Macau and it
is one hour away from Hong Kong by ferry. It employs two staffs; retain an on-call
car and a hired chauffeur. The monthly overheads and the cost-to-work in euro terms
is more or less € 6,000.00 per month.

Past experiences have suggested consultative and educational sales methods will not
only garnish loyal customers it is also the most effective way to make market
expansion. Thus more facilities such as class rooms, demo kitchen and showrooms
must be added or enlarge to answer the need of the market and the frustrations of
foreign suppliers to make their market entry rate quicker.

Our Guangzhou LeFou Fine Wines Ltd. is our sales office and is under separate
books of accounting. It has a showroom, reception, and conference to receive
customers. At present we have a sales force of six, full back up support with an office
staff of seven people. (Guangzhou is the business hub for Southern China).

Obviously, H3O's operating cost will rise to a level which, we, alone, cannot absorb.
The overhead plus the cost-to-work is estimated to be tripled to around €18,000.00
per month.

« Last | Next »