«Unisono - China calling WHAT'S NewS Issue 8 August 1996 working relations 3 Knowledge driven and cliënt oriented - the dynamic Dutch trading company working Chinese markets on behalf of a broad range of top European F&A capital goods manufacturers knows all about the value of building relationships. Over the past 11 years, Unisono has grown its name and reputation in the PRC, not least through its constant commitment to both the principals and the customers it serves throughout China. The story of Unisono bears more than a passing resemblance to the ups and downs in the recent history of the People's Republic of China. Maarten Buitelaar and Olaf Litjens worked day and night to establish Unisono as a credible and reliable counterparty. 'After three years,' ^^Litjens recalls, 'we were really making progress. Then came Tianenmen Square and the ensuing trade embargoes and restrictions. 'I don't think we ever considered puiling out, we were definitely there to stay. But this new situation meant we had to rethink our strategy.' REAL KNOW HOW The Unisono response was to spread risk. 'We had focused on acting as agents for capital goods into China; now we set up an export company to bring Chinese goods to Europe. Our thinking was that every threat is also an opportunity.' Turning this setback into an opportunity has paid off for the growing company. 'The early years were certainly tough,' says Litjens frankly. 'If you want to sell capital goods, you have Bo work on long-term relationships. People have to trust you. We began by focusing exclusively on animal husbandry - poultry, pigs, feeding systems and so on. But we also realized that there would be more added value in food and beverage, vegetable processing, and bakery and confectionary. So, over time, we have gradually expanded our activities to cover capital goods in those sectors.' MARKETING CHINA Today, food and agri-processing remains a cornerstone of Unisono's activities, primarily because it represents a huge growth area in an immense market. 'China has always had a tremendous problem feeding its people,' Litjens says. 'This is why 60 percent of the population are engaged in agriculture. To generate the volume of foodstuffs needed, they require foreign technology and know-how to increase efficiency and enlarge output. So the market is there. The question is: how do you get into it. In Europe, your strategy tends to be based on the concept that a salesperson knows the whole market. That's impossible in China and that realization led to the organizational structure we have developed.' KNOWING THE MARKET Unisono has based its organization on a combination of thorough market research and strong pre- and after-sales service. 'Everything we do,' Litjens confirms, 'is based on ongoing market research. We have a dedicated team of six people who spend all of their time gathering information. This information is combined with the know-how brought in by the sales people so that we are always working on the basis of the real situation in the marketplace. It also enable us to make realistic forecasts on future development.' PERMANENT PRESENCE Like all the staff in both the current Beijing and Guangzhou offices, the research and sales teams are local hires. 'This brings me to permanent presence,' Olaf Litjens says Litjens. 'Your track record in China is important. Few clients care whether you're number one in Europe; they want to know what you've done in China. There are companies which have been there for 20 years, but management has changed every two years. If you run your operation that way, you effectively start from scratch every time you bring in a new manager. Although 1 1 years doesn't sound like a long time, Maarten has been there for that whole period. We have invested heavily in local hires; our whole team, including management, is Chinese. All relevant personnel spend around three weeks a year in Europe for training by our principals. As a result, we have a highly- motivated, highly trained staff.' COMPLETE SOLUTIONS According to Litjens, a team of this quality is essential to provide both the levels of service Unisono considers a prerequisite for their clients. 'We like to think we offer complete solutions to any problem a cliënt may have. This is why we have built up a data base of 8,000 food companies, complete with data, such as type of equipment, production output, kind of product. When a cliënt comes to us and explains what they want a plant to achieve, we can go into the data base and come up with the right answer for his problem.' Continued on page 12 It was Jennifer Chen of Hong Kong's Dutch desk who first suggested Olaf Litjens, might be willing to talk about the company, its market and its relationship with the bank. Unisono is that rare animal - a Dutch company which now banks with a local member Rabobank following an introduction from the international network.'lt is usually the other way around,' Chen laughs.'They became a Honk-Kong cliënt even before we had a rep office in Shanghai. Later, they opened an account with the Rabobank in Eemnes, where their Dutch office is located.' Jennifer is responsible for some 14 Dutch clients involved in a variety of activities in the region.'But,' she adds,'while these are what we call"borrowing" clients, we also look after over 20 companies that are prospects or potentials which fall within our target group of Dutch or Dutch-related companies. That is Hong Kong's Dutch Desk: the primary function of a Dutch desk and that's what Amoi Lee (left) and Jennifer Chan we're all about here.' Rabobank Nederland Hong Kon&Lranch

Rabobank Bronnenarchief

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