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Home > News > News Archive > Staffordshire 'David' Takes On Chinese 'Goliath'

2005-12_126623_B_N_1_EJ%20PAYNE_0002

Staffordshire 'David' Takes On Chinese 'Goliath'

Published: Wed, 21 Dec 2005 00:00:00

A small Stoke-on-Trent manufacturer of quality control equipment for some of the most famous names in the ceramics industry has recently achieved dramatic success in one of the largest and most competitive markets in the world – China.


Employing just five people, E.J. Payne, which was set up in 1863 as a pharmacy, has been supplying high quality ceramic quality testing equipment to the potteries since 1972.

However, as the number of ceramic factories in Staffordshire has dwindled over the past 25 years and the UK market is now only a fraction of its former size, the company has had to rethink its marketing strategy.

Technical Director, Adrian Allen, turned to UK Trade & Investment’s Export Marketing Research team for help.

He explains: “It is important to learn how to do business in China and this was made possible for us by UK Trade & investment’s Export Marketing Research Scheme. With their assistance I was able to visit China twice and I didn’t have the pressure of having to make my fact finding trips pay by achieving sales. I was able to relax and carry out a really thorough research exercise. I found out that while our competitors in China provide a much cheaper product, it is also of a much lower quality. When customers see the reliability of our products and realise that our instruments test to internationally recognised standards, our cheaper competitors begin to look less attractive.”

“I also learnt that the Chinese like to be able to see and touch a product and they prefer to get to know whom they are doing business with. It was this that convinced us of the need for an office over there, if we were really serious about breaking into the market.

Up until that point, we had used agents, with a limited amount of success. Since we opened our own Chinese office in August 2003 with a Chinese-speaking manager, business has improved dramatically. This has also been helped by our holding stock in China and our ability to accept RMB payments.

I can directly attribute over £500,000 worth of business to the research I did via the Export Marketing Research Scheme and the additional assistance we received from the UK Consulate in Guangzhou. We now have daily enquiries from China producing a regular stream of sales. These sales have been the springboard for other business, as well as extensive press and TV coverage.

I would strongly recommend any company who is considering entering the Chinese market to start with the Export Marketing Research Scheme”

The Export Marketing Research Scheme is part of a package of services provided by UK Trade UK Trade & Investment.

UK Trade & Investment's services in Staffordshire are delivered through the Staffordshire Chamber of Commerce, which has a full range of business support services including advice and information on business start-up, international trade, growth, information technology and workforce development.

For more information about how UK Trade & Investment can help your business expand into new markets abroad, contact the international trade team at the Staffordshire Chamber on Tel: 01782 224401.

Picture caption: EJ Payne’s Technical Director, Adrian Allen and Mr Xian Yong Heng, Director of Hua Xia Ceramic Exhibition City sign a contract for the supply of laboratory test equipment worth £500,000.


NOTES TO EDITORS

1. UK Trade & Investment is the government organisation that provides integrated support services for UK companies engaged in overseas trade and foreign enterprises seeking to locate in the UK. It brings together the work of teams in British embassies and FCO posts overseas and government departments across Whitehall. In England, international trade support is coordinated by nine International Trade Directors working in partnership with each Regional Development Agency. UK Trade & Investment services are delivered locally through a network of International Trade Teams. The devolved administrations in Scotland, Wales and Northern Ireland have their own arrangements for local
delivery of services. For more information visit the web site
www.uktradeinvest.gov.uk

2. For more details about EJ Payne contact the company on 01782 312534 or visit the website www.ejpayne.co.uk


ISSUED ON BEHALF OF UK TRADE & INVESTMENT BY JESSICA BROWN, GOVERNMENT NEWS NETWORK WEST MIDLANDS

Regional news releases for Government departments can be viewed at
www.gnn.gov.uk


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