Routes to Growth shares the experience, knowledge and success of UK businesses in China and South-East Asia.

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Manufacturing

The latest hot export to China? Safety standards

17th Jun '16

In the latest in our Routes to Growth series, Tracey Boles meets the inventor whose self-warming baby bottle is proving popular in China and Korea

Company: Yoomi Trading in: China, Korea Sector: Baby products


Consumers in China and Korea love top quality global brands. They also demand products that meet the toughest international safety standards, according to Dr Jim Shaikh.

His company, Yoomi, manufactures and distributes a rechargeable self-warming baby bottle that is proving a hit in both countries.

China is particularly concerned about the baby sector after the contaminated milk powder scandal of 2008.

“Korea has a similar mindset,” Shaikh says. “Both markets cherry-pick the highest standards from around the world, meaning test after test.” For example, they may combine the toughest material standards from Japan with functional standards from the European Union.

“How a product smells can be very important to Chinese customers and some may even taste new products”

Yoomi uses an expert in materials safety and regulation to help identify the standards required in each territory and ensure correct certification.

“China is a difficult market as the standards are not always clear and easy to find. Also the rules change frequently,” Shaikh says. “So this does take some work from our side.”

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Dr Jim Shaikh: "The rules change frequently"

The Yoomi bottle is British-made, in Dartford, Kent, making it attractive for both countries. At the press of a button, it warms milk from fridge temperature to breast-milk temperature in 60 seconds, so a crying baby can be fed fast – a huge advantage for tired new parents. Shaikh, an engineer, developed the patent after becoming a father.

China and Korea account for 50 per cent of Yoomi’s turnover, which stood at £600,000 last year and is expected to reach £850,000 this year. Shaikh hopes for a further uptick from the relaxation of China’s one-child policy. “I expect a bounce in births to 20m a year from about 16m now,” he says.

Shaikh came across his Asian customers when he was exploring expansion at trade shows in Europe and found a lot of interest from the region. Yoomi went to Korea in 2013 and China a year later.

He has learnt a lot about Korean expectations. “After quality assurance, we had to think about the language and instructions on the packs. What level of detail should we go into?”

Korean customers expect a level of service way above that demanded in the UK. “It is common to expect free service; by which they mean ‘stuff’. We had to price in spares.”

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Regulation nation: China cherry picks world safety standards

Shaikh also had to get used to haggling. “We spent three months negotiating the price. I finally learnt not to be upset by that.”

All this prepared him for the Chinese market, where he recommends a regional approach. “Each region is like a country. Some are as large as the UK. Having one distribution company to do it all doesn’t make sense.”

Yoomi chose distributors with experience of imports and making international payments: “Both can be quite difficult for local Chinese companies as they need to have the correct certification and authorisations.”

Shaikh also advises being prepared for cultural differences. “How a product smells can be very important to Chinese customers and some may even taste new products. We now ensure that our products undergo a double clean and hand-finishing process to ensure that everything is as it should be ‘out of the box’.”

Now that Yoomi has experience of China, the next stage is to develop relationships directly with cross-border e-commerce sales channels and retailers such as Toys R Us and Hong Kong healthcare and beauty chain Watsons. Yoomi aims to launch in both by late summer.

yoomi.com

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