Canny investors should look to the East for opportunities

“When I came over here first, I was over and back between here and Ireland, and there wasn’t a lot to do as regards having fun.

Around Guangdong it was all industrial — massive industrial estates and operators living in dorms and sending money back home.

“What struck me was how not so different it was to Ireland in the old days. My parents left Ireland and went to England to make money and were sending their wages home at the end of the month.

“China at that time was different from China now: The people were different, the money was different.

“When I used to go out to the production line, the operators were earning €50 or €60 per month. Now they are pulling out €200-€300 a month. It’s a market-driven thing. It’s supply and demand. There are still a lot of factories trying to get a full complement of staff.

“What we set up to do was to source goods for customers in Ireland, the UK and the US from suppliers and manufacturers here. There’s such a huge industrial base here that I could find 90% of what customers wanted here in the province: Electrical goods, DIY materials, office furniture, gym equipment, medical supplies — whatever you want.

“We did a lot of business in hotel fit-outs. Foshan is a city three hours drive away and [it has] a massive furniture centre, so whatever you wanted — 100 blue chairs and matching headboards, wardrobes, TVs, anything — you’d find it readymade or get it made to order.

“I also do inspections for companies who have sourced their own suppliers but need to check the container before shipping.

“Usually, you put down 30% of the price before shipping and 70% after delivery but that’s not much comfort if don’t get what you ordered. You need someone here to do an inspection. It’s too late once it’s shipped.

“The majority of products over here will be made to a foreign design, a foreign specification, and foreign standards. A lot of the toys, for example, meet the foreign requirements. But if you buy from a company selling to the Chinese market, you’re leaving yourself open. You have a great price but it will not meet your specifications.

“The markets that have the highest standards are the Japanese and Germans, and there are plenty of companies supplying them exactly as they demand them.

“We’re trying to keep our fingers in as many pies as possible. With the recession in Ireland, the hotel fit-outs are gone and bosses aren’t buying new executive chairs when they’re laying off people.

“But the medical end of the business has kept up — in fact, there’s been a slow increase. And even though China hasn’t grown as much this year as the last few years, it’s still growing about 7% and I think there are some good opportunities the other way around — sourcing abroad for the Chinese market.

“There’s a new middle class now that wasn’t there before and there is definitely room to sell Irish products as premium products. There is no point trying to sell cheaply because you won’t sell cheaper than the Chinese, but there is a market for top-class products.

“When I go to a restaurant and there’s steak on the menu, it’s from the USA or New Zealand or Australia. When I go to the Walmart, the cheese is from the USA.

“I find it cringing because I know the dairy and meat products that come out of Ireland are the best in class.

“I’ve seen some silly things. The Chinese don’t have a history of having much money to spend, so a boss will pay €200 for a bottle of imported red wine — you can get Chinese wine for €3 to €4 but that wouldn’t be good enough — and he’ll show it around, then pour it into a jug and fill up the jug with 7Up to drink it.

“The value of the drink was in the price rather than whether or not it was a good wine. At least if they paid premium prices for Irish goods, you’d know they’d get premium products.

“I see good opportunities. I’ve never seen fresh cream in China. You see condensed milk used in cooking, but not cream, so it’s not just a matter of getting a product over here, you have to market it.

“It’s the same with butter. You can get it but it’s expensive — about €2 for 100g — and it comes from New Zealand. They use oil in the wok, but if you put a bit of butter in at the last minute it really lifts the flavour. If it caught on here it would be fantastic but you couldn’t just flood the place with Irish butter — you’d have to come over and develop the product.

“When I set up here first, the factories were mainly state-owned, but now the majority are owned by locals and there’s a large Hong Kong and Taiwanese contingent as well as joint ventures.

“Conditions for workers have improved, too. Operators would often work 12-hour days or six-day weeks, but it’s not hard work. It’s repetitive but not difficult.

“I remember the production lines used to be very warm, but most places have air conditioning now and they know that if workers are uncomfortable, they’ll leave and go down the road to work at the next factory.

“What I do find challenging in China is driving. When you’d get up for work in Cork, you’d fall into the car half asleep, stick on the radio and still get there in one piece.

“In China, you give it your full attention — any car could potentially do anything at any stage. After you drive an hour or two in China, you have to take a rest.

“It’s great over here once you get into your stride. Now there are plenty of coffee shops and drinking coffee and lounging around with friends is normal. It’s not so different from Ireland.”

* In conversation with Caroline O’Doherty.