Q： Why is China attracting the interest of Irish equine professionals and what factors make the Chinese market an attractive one for the future?
A： You can see from industry data that China’s equine market is growing strongly： From 2018 to 2019 the equestrian population in China grew by 9.8% and the number of equestrian clubs increased by nearly 20%. Projections now put the number of riders in excess of 1.2 million and the number of clubs at well over 2,100 and strong growth is forecast to continue. We are also seeing a healthy trend in the profile of equestrian club membership with 90% being under the age of 18 and female members becoming the main consumers. We anticipate this will be a major factor in driving future growth in demand.
Ireland is a major global centre for breeding high quality bloodstock and we are excited to see a 26% increase in imported horses registered with equestrian clubs across China between 2018 to 2019. Of these 35,415 imported horses registered with clubs, 54% are owned by individuals.
The recently announced "National Equine Industry Development Plan (2020-2025)" published by MARA & General Administration of Sport in China, strongly demonstrates support at the highest levels for the coordinated development of China’s equine industry.
With this national government support and the positive market trends, we fully believe China’s equine sector will develop rapidly and as an emerging market, more opportunities and demand for Irish products and know-how will pop-up.
Q： What are the strengths of the Irish equine sector and why are they suitable for the Chinese market?
A： Ireland is the third largest producer of foals and second largest producer of bloodstock by value. It also has the highest ratio of thoroughbreds per head of population at approximately 50 horses per 10,000 people. By comparison Australia is the next nearest with a ratio of 28 horses per 10,000 head of population.
But it’s not just about quantity as Irish thoroughbreds and their handlers are renowned for being of the very highest quality. Many of the world's top stallions are in Ireland and in 2017 nine of the top twelve European stallions were Irish. Six of the last ten Epsom Derby winners were Irish-trained and Irish-bred horses regularly feature among the highest rated in Hong Kong.
Q： Do you have examples of Irish companies who are making a success of their venture into the Chinese market?
A： William Connolly & Sons Unlimited Company who may be better known by their famous brand name Red Mills, is a great example of Irish success in China. They focus on professional horse feeds to enhance performance for example in horse racing. Following their success in other countries, they chose Hong Kong as their first step into the Chinese market and became supplier to The Hong Kong Jockey Club. Connolly’s RED MILLS have been operating in the Chinese market for 7 years now and have a dedicated team on the ground who support their distributors and customers. Currently offering 4 products to the Chinese market and with country wide availability, Connolly’s RED MILLS is seen as the feed of choice for the high-performance equestrian customer. Ongoing investment means their highly trained team are available to discuss the Red Mills product range and advise on all aspects of equine nutrition. Despite the major impact of the COVID-19 outbreak, their turnover in 2020 still achieved €1.6 million and the company plans to introduce a wider range of feed range into the Chinese market, a clear indication of their confidence going forward.
Q： What have been the major challenges for Irish exporters looking to do business in the Chinese market and what advice can you give to those companies thinking about selling their products and services in China?
A： Localization - China is a huge, dynamic, high potential market, but the business environment and business models have significant differences to those in western countries. Irish suppliers must invest time to find qualified distributors or partners, build-up connections with local buyers and importantly, maintain relationships. Some have set up local sales teams and others will rely more on the support from Enterprise Ireland. At Enterprise Ireland we are focused on supporting Irish Equine exporters to gain knowledge of this sector and help define routes to market which enable them to win customers and sales.
Regulatory compliance – Enterprise Ireland can help Irish exporters of products such as horse feeds, nutrient supplements and medicines, navigate the procedures and related regulations to enable their products to get registration approval by the Chinese authorities. A big part of our job is to make sure Irish equine exporters gain smooth access for their products into China.
Q： The Irish have been a longtime supporter of China Horse Fair, how can this event help Irish exporters and what are your plans for China Horse Fair 2021?
A： China Horse Fair acts likes a window onto the Chinese market for Irish Equine product manufacturers. It offers a very convenient and effective way to collect market information, meet potential partners /distributors and of course buyers. Enterprise Ireland as a representative of the Irish government, we fully support our Equine clients to participate in this event as part of the Irish National Pavilion, which presents a more complete and impactful view of the country’s Equine capabilities.
In 2019, we hosted three companies – Connolly Red Mills (Horse Feed), Plusvital (horse nutrient supplements) and Horseware (Horse rugs & Rider clothing). We were honored to have the support of His Excellency the Irish Ambassador on the opening day of the show. In 2021 we hope to welcome more new Irish companies to participate in China Horse Fair displaying a range of products from horse rugs, feeds, nutrient supplements, medicines and equipment for stud-farms.
Q： How can Chinese equine professionals find out more about what Irish suppliers can offer?
A： A good start is to contact Enterprise Ireland where we have two people based in China to fully support the Irish Equine industry and help them develop and enlarge their business here. Mr. Wang Chao, as the representative of Horse Racing Ireland (HRI), promotes sales of Thoroughbreds. I am Senior Market Advisor in Enterprise Ireland and support all other Equine promotion and sales in China. We continuously update our Irish clients with the latest market information and introduce them to qualified buyers or partners and so enable connections to be made e.g. with related companies or stud-farms. Irish companies are following the trends and demand from China so as to improve their products and services to better fit the Chinese market requirements, even their Thoroughbreds.
Andrew Furness
China Horse Fair - International Sales
Email. andrewfurness17@gmail.com
www.chinahorsefair.com.cn
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