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04.02.2014

Ulrich Welter visits the association of interior Designers in Chongqing


The meaning of “Handmade in Germany” to China.

Ulrich Welter, owner of Welter, a manufactory producing high-quality and unique wallpapers, was recently in Chongqing, China. He was invited by the local association of interior designers. The idea for this trip was born last year, when Chinese businessmen visited his manufactory in Berlin Schöneberg. They invited Ulrich Welter to come to China and give a speech on manufactories. Spontaneously, he agreed.

At this time he already had been to China once as an ambassador for the German manufacturers. As ambassador he gave a lecture on “Europe, from handcraft to manufactories to industry – and back”. In the audience there were members of the association of interior designers as well as representatives of the press. Both enjoyed his lecture which received a very positive feedback by the audience.

The initiative of German manufactories talked to Welter after his trip, asking about impressions and experiences he made in China.

Which aspects are the most important to Chinese business partners?

In general, products from Germany are admired in China. People appreciate the high quality, and surprisingly, that products from Germany don’t contain any pollutants. Environmental protection is a very sensitive issue in China. In China, the fear of hidden, harmful substances in Products is always present. This was always the business partners’ first concern. Also, it is very common to ask, if the products used are labeled as environment friendly by a certificate.

What do the Chinese appreciate about „Handmade-in-Germany“?

European products – especially those coming from Germany – are famous for being of high quality. Commitment, reliability and righteousness are important to them. In China, goods are considered “manufactured” that are non-industrial produced and for this reason expensive. People are surprised that in Germany some goods are still handmade. Furthermore, the structure and particular education of German handcraft cause frequent astonishment.

Still, many people asked Welter, why he doesn´t produce in China. In Ulrich Welter’s opinion this conflict demonstrates, why it is difficult to do business in China. Based on this conclusion, he thinks that those handmade products have the highest prospects of success which fulfill these requirements :

  •  Products which are not easy to produce.
  •  Products which assume specialized know-how and craftsmanship.  
  • Products with a strong brand image, so that clients can increase or show their social status.

 

What are the factors for succesfull business relations to China?

In his many trips to China, Ulrich Welter made a lot of different experiences. The Chinese market offers both, good opportunities and great challenges. The most important factors to build good business relationships are patience and endurance. Everything takes more time then you would have ever expected.

Welter sees the biggest challenge in promoting „Handmade-in-Germany-products“ in  two particular issues:. First, China’s markets haven´t been opened for a very long time, yet and people have a different understanding of aesthetics. Second, the consciousness for high quality isn´t that present sometimes. But this is no surprise, facing the fact that Chinas´ industrial and capital oriented history just began. Therefore, German manufactories which produce at an extended manufacturing level and use high quality materials, have to be very clear in their communication in order to stress these aspects as unique selling propositions.

Asked for an concrete example, Welter explains the following: „My personal experience is that in China, sometimes it is enough when products look nice although content and function are missing. Sometimes, I feel that some parts of the Chinese society can’t tell the difference between silver and a simple sheet of iron. Both have the same color, both are metal and both are shiny. The iron sheet even shines brighter and doesn´t oxidant! Only the fact that silver is more expensive indicates that it hast to be of better quality. The task is now to get in contact with local resellers to explain Chinese clients the advantages of silver over iron. “

What will the future bring?

There certainly is an aesthetic educated part of the Chinese society which appreciates quality. Wealthy Chinese people are oriented by prize and brand, they only buy originals. Trust building and a good brand positioning are the main aspects of being successful on Chinese markets. The target group that Ulrich Welter addresses with his products is very small in China compared to Europe and even harder to reach. Summing up his experiences from the last two years, he´s going to adjust his product range. His intention is to position himself with fewer selected products.

The awareness of cultural differences is essential to German manufactories expanding not only to the east, but all over the world. Ulrich Welter´s outlook on  the future is optimistic. With the help of his friend from Chongqing he was able to establish many new contacts in China on his last visit.. Also, Welter and the association of interior designers are planning to extend their collaboration. For example they want to organize an exhibition in combination with a cultural program in the next year, supported by the local district government.

Together with other manufactories, some of them members of  the initiative, Welter maintains a showroom in Beijing.

PLI. X Trading Company Limited

Beijing Jiancai Jingmao Dasha 10-05

Dongtucheng Lu Jia 14, Chaoyangqu

100013 Beijing, P.R. China

www.plix.cn

 

Background information:

Since 1985 WELTER Manufaktur für Wandunikate refines the walls of private appartments, hotels and restaurants all over the world. The Welter manufactories already decorated  the main stage for the Oscar nights and also produced individual products for certain companies such as Chanel. www.welter-wandunikate.de



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