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CNN World Report

South African Businesses Look to Enter Asian Market

Aired May 27, 2001 - 14:14   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SHIHAB RATTANSI, CNN ANCHOR: Trade between two other continents is on the rise. Drawn by high standards of living and technology, crumbling South African businesses are building new alliances in Asia. But maintaining a fair and consistent exchange between South Africa and Japan is cause for concern for some buyers.

South Africa's SACB reports from Osaka.

(BEGIN VIDEOTAPE)

KIM CLOETE, SABC REPORTER (voice-over): Some Brazilian-South African entrepreneurs have decided to cross track their businesses, and are moving to the Asian market. Despite a slump in the Japanese economy, it's still the second most-powerful economy in the world, with the mastery of high technology, and exceptionally high standards of excellence.

The South Africans, who run businesses in diverse fields, from electronic golf trolleys to textiles and chemical detergents are determined to compete with other countries in doing business with the Asian markets.

At the Daiei supermarket in Tokyo, entrepreneurs looked at different products, checked out the competitors and saw opportunities for exports.

GIL ARBEL, FRESH PRODUCE EXPORTER: If they're prepared to pay so much for Australian stuff, Dutch stuff, we can also fly from South Africa.

CLOETE: The Daiei chain, which is 6,000 convenient stores and over 300 supermarkets around Japan, has expressed interest in South African products.

KOZO YOMADA, GENERAL MANAGER, DAIEI SUPERMARKET: It's good business. As long as the quality of the products and the prices are acceptable. we are willing to import directly from your country.

CLOETE: But some Japanese buyers want assurance that South African exporters will deliver the goods.

(on camera): Quality and consistency are the key ingredients to investing in Japan. Some South African companies have floundered because they haven't kept up with the demand for their products. (voice-over): Importers have complained that wine, for example, would be on supermarket shelves one month, but the next month the containers simply wouldn't arrive. The 40-strong group of entrepreneurs, who have met with importers and investors from Japan, Hong Kong and mainland China, have learned valuable lessons about doing business with Asian countries.

MIKE MAZIYA, MAZIYA INDUSTRIES: What's crucial at this point in time is the follow-ups, and also to ensure that, you know, when they talk to us, we respond efficiently and quickly.

CLOETE: South African Sheri Valente has successfully tapped into the export markets. She is the only South African exhibitor at Hong Kong's annual housewares fair, which attracts nearly 2,000 exhibitors. In fact, she has done great business. At the fair, one importer alone place an order of 160,000 soap balls. This kind of trade is good news for job creation.

SHERI VALENTE, MANAGING DIRECTOR, HERBAL TREATS: Since last year, April, we have doubled our workforce, and we plan to do that again this year. We just plan to, every time we do a show, to increase more and more and more on the side of production.

CLOETE: For some of the entrepreneurs in the trade mission, the Asian market is still new and untested grounds. They learn you rarely know whether they've been successful once they follow-up their contacts and possibly come back to these Asian cities to pursue their interests. But their willingness to compete openly in the global markets could reward them with success.

I'm Kim Cloete of the South African Broadcasting Corporation for CNN WORLD REPORT.

(END VIDEOTAPE)

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