The Perennial Pavilion's "Ever-Present Innovation"

 

 

Reporter: Shan Yu Zifeng

Contributor: Fu Chunyi

Each China-CEEC Expo & International Consumer Goods Fair (hereinafter referred to as the China-CEEC Expo) lasts only four days, leaving exhibitors with a sense of nostalgia and reluctance to part. However, since the inaugural China-CEEC Expo, the slogan "Never-Ending" has been proclaimed with great enthusiasm.

At this moment, the CEEC Specialty Goods Permanent Pavilion (hereinafter referred to as the Permanent Pavilion) remains vibrant with colorful banners and continuous updates: Zhang Chunrui, an imported wine dealer, polishes the newly arrived Disney co-branded CEE soda, its bottle adorned with the cheerful grin of SpongeBob SquarePants; Tang Hao, a seasoned professional in the cosmetics industry, is preparing to host a visit from Romanian partners in early August; On the laptop screen of Serbian expatriate entrepreneur Guo Xiao, the number of "CEEC Homes" he founded has grown to 38, with the farthest one now established in Urumqi, Xinjiang...

Marking the 50th anniversary of diplomatic relations between China and Europe, the Perennial Pavilion—a 'National Commodity Pavilion' open year-round—weaves a vibrant narrative beyond the four-day spectacle of the China-CEEC Expo, stitching together time like a master tailor.

New Products:

Bubbles Carrying Fairy Tales Beyond Boundaries

As Zhang Chunrui twisted open the soda bottle cap, a cheerful "Pfft—" erupted, sending effervescent bubbles cascading over the rim.

Beside the price tags, shelves brimmed with soft drink samples featuring "Minions," "Patrick Star," and "Madagascar’s Animal Families." The founder of Ruixin (Ningbo) International Supply Chain Management Co., Ltd., a veteran of over a decade in French and Spanish wine trade, has now placed his bets on these Disney co-branded sodas sourced from CEECs.

"When selling French wines before, clients scrutinized our annual revenues, demanded tales of terroir from each river valley, and evaluated every series’ body characteristics..." And that's not all—we're also competing with thousands of importers nationwide." She gently ran her fingers along the bottle of Hungarian non-alcoholic sparkling wine. "Now kids instantly reach for anything with SpongeBob on it."

The transformation caught us completely off guard.

Last May, upon recommendation from Changnian Pavilion, she joined a Chinese business delegation to Budapest for the 2024 China (Zhejiang)-Hungary Economic and Trade Cooperation Forum. During the event, she met with the sparkling beverage manufacturer, where both parties engaged in substantive discussions.

She explained to our reporters that sourcing suppliers from CEECs used to feel like "navigating a labyrinth." Precise demand matching required piecing together fragmented information to assess qualifications—a solitary endeavor that made establishing mutual trust exceptionally challenging. Even when we finally found suitable partners, production bottlenecks frequently arose; slightly larger orders would strain their capacity, leaving us anxiously tapping our feet in frustration.

However, government-endorsed trade initiatives have dramatically reduced the trust-building costs for both parties. By "going global" to source products, businesses can leverage official platforms to connect directly with suppliers, gaining firsthand insights into product quality through face-to-face exchanges. Additionally, the Perennial Pavilion's support policies encourage enterprises to "take the initiative"—reallocating cost savings to establish more in-store tasting stations.

Those once-overlooked CEE products, previously obscured by information asymmetry, now stand clearly before her—igniting an immediate spark of inspiration. With palpable excitement, she exchanged contact details on-site and collected multiple product samples.

"After six months of negotiations, we secured a container-sized import trial order. The Walt Disney Company's line of sparkling beverages has now arrived at the Perennial Pavilion. Positioned as festive party drinks, this collection is poised for a strong summer rollout." She adorned the Minions-themed bottles with ribbons, "letting effervescence carry fairy tales beyond conventional boundaries."

Emerging Momentum:

Channel veterans' breakthrough revolution

"In the eyes of Chinese consumers, CEE beauty products are 'white-label' (unknown brands), so performance speaks louder than words," said Tang Hao, head of Ningbo Fufeng Trading Co., Ltd., a cosmetics industry veteran since 2002, with refreshing candor.

The "Channel Transformation Pioneer Award" plaque prominently displayed in the showcase bears witness to his remarkable transitions—from department store counters and supermarket shelves to CS channels (cosmetics stores, daily chemical retailers, and specialty boutiques).

"Based in Ningbo, it's impossible for us not to have ambitions about the CEE import market," Tang Hao admitted. Two years ago, he joined a trade delegation organized by the Perennial Pavilion to survey markets in Greece and Croatia. Last year, he toured pharmaceutical plants in Romania with another delegation, and in April this year, he attended the China-Hungary Trade and Investment Forum hosted by the Ministry of Commerce... Yet after multiple fact-finding trips, he conceded: "The challenges ahead feel all too real."

For instance, how should distribution channels be established? Fufeng has partnered with over 10,000 Counter-Strike outlets nationwide. The challenge lies in convincing these retailers to stock unfamiliar products.

How should the narrative be crafted? While French perfumes boast centuries of heritage, CEE cosmeceuticals can only present clinical efficacy data.

How should risks be mitigated? Who possesses the conviction to venture into emerging markets...

The superior quality of CEE products alleviated some of his reservations.

"They apply pharmaceutical-grade standards to cosmetic production, with scar-reduction technology derived from patented burn treatment dressings," he explained, presenting journalists with footage from his visit to Dr. Fetterman Cosmetics in Romania. The sterile facility showcased hyaluronic acid crystallizing in precision reactors. "Exceptional product! The crucial challenge lies in building brand recognition. Conversely, the complete lack of market awareness for CEE niche brands presents a strategic opportunity for major distributors."

A shift in perspective reveals promising possibilities.

"We have now reached a strategic cooperation agreement with Romania. On August 2nd, the CEO of the Romanian factory will visit Ningbo to inspect our packaging line. Additionally, we have confirmed our participation in the November China International Import Expo (CIIE), where this cosmetic product will make its nationwide debut." Tang Hao confidently tore open a sample pack of Romanian scar removal patches.

The "white label" expansion of CEE beauty products has become this distribution veteran's new battleground.

Innovative Approach:

"Shared" Permanent Pavilion Lights the Way to China

On the laptop screen of Guo Xiao, President of the Serbian Chinese Business Association, two datasets were displayed: the left showed a live commerce achievement of selling an entire cabinet of coffee within 7 minutes, while the right tracked real-time nationwide sales figures for "CEE Hom"' retail outlets.

"You'd be surprised to learn that our Urumqi store—the farthest from Ningbo—has procured goods worth 1.2 million yuan in just the last three months. When converted to actual turnover, the figure is even more substantial," Guo Xiao told reporters. Though the 4th China-CEEC Expo has concluded, he finds himself busier now than before the event.

With 25 years of business experience in Central and Eastern Europe, Guo Xiao has significantly increased his travels between China and Serbia since returning to his homeland in 2018 to establish his venture at Ningbo's Perennial Pavilion. His efforts range from organizing a promotional event in Serbia six months ahead of schedule to leading a delegation of nearly 50 Serbian companies to the 4th China-CEEC Expo. What began as a modest showcase of wines at the inaugural expo has now blossomed into a diverse portfolio of over 400 products—spanning food, crystalware, cosmetics, and more—representing a multi-country matrix from nine CEECs.

Only by gaining a thorough understanding of Chinese consumers' preferences and sales models can one truly seize the opportunities in the Chinese market—this is the insight Guo Xiao has gained from years of leading Serbian companies to participate in the China-CEEC Expo. In May this year, through his proactive coordination with the Ningbo Import Commodity Center, the Serbian Commercial Technology and Tourism Center in the permanent exhibition hall was officially inaugurated.

"In this 500-square-meter space, we've meticulously designed multiple display sections, including four distinct live-streaming setups," Guo Xiao explained. Here, Serbian enterprises can gain firsthand insight into China's current marketing approaches, consumer-preferred flavors, and packaging trends, enabling them to better understand the nuances of the Chinese market.

"Currently, we have established partnerships with five Serbian enterprises. By October this year, they will complete registration and settle in, gaining access to a full range of services for importers within the pavilion. This initiative will pioneer a new direct-to-China business model for CEE companies," stated Guo Xiao.

The enduring vitality of the Perennial Pavilion's 'ever-fresh' concept stems precisely from its transformation of 'sharing' into a more valuable 'currency' than physical commodities themselves.

 

 

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 Disclaimer：The above content is translated from Chinese version of Ningbo Daily. The Ningbo Daily version shall prevail.