German branding company BrandMatters will open its first Chinese office in Shenzhen this month, aiming to help Chinese companies explore the European market amid the rapid development of the Chinese economy.

"Shenzhen is the location for our first China office, because we are targeting Chinese companies seriously interested in expanding into the European market. I believe that Shenzhen companies are very much open to taking this step and most already have international exposure," said Florian Strauss, managing director of BrandMatters.

"More and more Chinese SMEs (small and medium-sized enterprises) approach the global market, including the European market, with high quality products. But the European market is very complex, saturated and follows different rules than the Chinese market," Strauss said.

According to customs statistics, China's exports from January through June hit US$428.5 billion, a 25.2 percent increase year on year. The European Union continued to be China's biggest trading partner, with a total of US$120.9 billion imports and exports, a 20.9 percent increase.

"To succeed in Europe it is not only important that you tell the relevant target group what kind of products you have and build awareness for your company through attending trade fairs, making delegation visits to Europe, and launching sales activities in Europe. It is also very important how you do that," Strauss said.

At present, attending trade fairs abroad is an indispensable way for Chinese companies to tap into the foreign market because it not only expands their business but also helps the firms find partners, said Gao Yan, vice president of China Council for the Promotion of International Trade.

Last year, some 26,000 Chinese firms attended 950 trade fairs abroad, 13 percent more than in 2004. Not being thoroughly prepared is the biggest problem that Chinese businessmen have at these fairs, she said.

Developing a comprehensive marketing and brand strategy as well as marketing communications adapted to Europe is critical for Chinese businessmen. As everywhere else in the world, good relationships with the local government and governmental institutions also help to build business, Strauss said.

Headquartered in Munich, capital of Bavaria, BrandMatters' past and present clients include German Audi, BMW, Fujitsu Siemens and Danish H2O Fashion. After Shenzhen, the company is planning to open a second Chinese office in Hong Kong.

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