China Romania Wine Industry Project Initiative
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CHINA —ROMANIA NJU MBA — BUES PROJECT
庄娜 IOANA B.A.
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GOALS
Open a Window to a new part of the world…warm Romania
Understand the significance of our Research Project
Open a Dialogue
Offer support in creating the Chinese Team
Take Action for Successfully Winning the Grant !
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BUCHAREST UNIVERSITY OF ECONOMIC STUDIES | www.ase.ro
BUES est. by Royal Decree on April 6, 1913
Professor Valentin COJANU Ph.D. | Coordinator of the Romanian team
Head of Doctoral School in International Business & Economics | Director of Studies, Research Master in International Business & Economics | Editor Journal of Philosophical Economics
Interests: spatial economy and development, competitiveness, philosophy of social science
https://ase.academia.edu/ValentinCojanu
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MY STORY
Ioana BUDALA AFRASINEI 庄娜, BBA MA
NJU MBA 2013 — 2016 | BUES MIB 2011—2014
FOCUS — China-Romania/ EU, Food & Wine Industry, Entrepreneurship, E-commerce, Strategic Marketing & Trade
8 YEARS — PURCHASING $10+ mil. turnover portfolio (ITALIAN MNC—China Business, Brand Management) | SALES $1.5 mil. turnover portfolio (SWISS MNC—Key Account Manager)
250 YEARS OF KNOWN GENEALOGY— Mountaineers & Farmers, Merchants, University Professors, Engineers, Doctors
20% CHINESE —Since age 18 Chinese studies, teacher Wang Xiling Tianjin | age 21 - 1st China journey, Shenyang - Liaoning University 1 year
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MY FAMILY’S FORERUNNERS 50 YEARS AGO
1960’s “May 1st” Petroleum Company Benchmark factory for the Romanian economy
—General Manager Mr. TOMOZEI (my great uncle)
My grandmother newspaper interview speaking french at age 87
My great grandmother writing poetry at age 80
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PRESENTATION OUTLINE
1. UPDATES CHINA —ROMANIA
2. MOTIVATION
3. PROJECT
1. Calendar
2. Summary
3. Key Concepts
4. Expected Results
4. WINE CULTURE
5. ROMANIA
6. CONCLUSION
OPEN DISCUSSION…
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1. UPDATES CHINA —ROMANIA
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1. UPDATES CHINA-ROMANIA
1949 – 2014, 65 years of traditional friendship China - Romania
Nov. 26, 2013—Mr. LI Keqiang China’s Prime Minister chooses Romania as a strategic parter and CEE Summit host country
NOW, June 6-8, 2014 — Inter ministerial Working Group China-Romania Agriculture Established—Mr. HAN Changfu, Minister of China’s Agriculture Ministry meets his Romanian counterpart
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Chinese Premier Li Keqiang’s welcoming ceremony in Bucharest, Romania, November 2013 (http://news.xinhuanet.com)
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Chinese Premier Mr. Li Keqiang delivers a speech at the Palace of Parliament in Bucharest, Romania, November 27, 2013 (http://news.xinhuanet.com /Yao Dawei) Romania hosts China - Central East European Summit 2014 (www.news.cn)
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WHY ROMANIA …Nov, 2013 —Mr. LI Keqiang:
“Romania— important pivot point for China’s collaboration with CEE countries and the larger Europe” (Eastern Gate to EU, NE of Balkan Peninsula)
Deepen political cooperation: trade, investment, infrastructure
“China - Romania Complementary Economies: Romania is rich in resources | high-quality workforce | solid industrial and agricultural base”
June, 2014—Mr. HAN Changfu:
Inter Ministerial Working Group China-Romania Agriculture
Priorities: livestock, investments and trade flows (cattle, sheep, swine and beekeeping), processing and marketing of agricultural products: wine, milk powder, pork
Territory visit agenda: milk processing, cattle husbandry, viticulture, models of family farms
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2. MOTIVATION
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MOTIVATION — WHAT’S IN IT FOR US ?
THE TEAM
Part of something BIG with GREAT IMPORTANCE
UNIQUE international experience Romania/ European Union
CARRIER foundation
VINICULTURE know-how
PRACTICAL SKILLS: spoken english, leadership, public speaking, project management
NJU MBA
ACCESS 1ST CLASS research programs
Reach 8000 Km farther
Bridge the booming EU Romanian economy and the most prestigious business university BUES
International reputation maximisation
!
CHINA
Romania — strategic pivot point in international collaboration with CEE and EU
ROMANIA — EU’S DRAGON - bilateral trade and high returns of investment
Romania—China Complementary economies
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3. PROJECT 3.1 Calendar 3.2 Summary 3.3 Expected Results 3.4 Key Concepts
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3.1 CALENDAR - Estimated duration 1 year
Chinese Team Coordinator Prof. Jiang Chunyan OK
Agreement NJU - BUES OK
Final NJU MBA’s Team Middle of June
Chinese—Romanian Team Complementarity Middle of June
Separate Project Plan Submission July, 11
Publication of Eligibility Results July
Publication of Final Results November
+10,000 Euro Grant Contracting Begining Jan, 2015
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3.2. SUMMARY
Project Title: The role of local economy in upgrading sustainable competitive advantages: lessons and empirical evidence from viniculture in selected provinces from China and Romania.
Research tracks proposal:
1 Technological Development in Viniculture (innovation, technology transfer, commercial applications)
2 Sustainability of Competitive Advantages
2.1 Commercial Sustainability (competitive advantages, global value chains)
2.2 Financial Sustainability (risk hedging, access to finance)
2.3 Environmental Sustainability (soil erosion, ecological agriculture)
Team complementarity proposal:
Chinese team: focus on tracks 1 + 2.3 | Romanian team: focus on tracks 2.1 + 2.2
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3.3. EXPECTED RESULTS
Within the research program: Report on technological development in viniculture
Report on sustainability of competitive advantages in viniculture
Publications: 1-2 working papers, 3-5 articles
!Practical implications:
Chinese and Romanian producers — M&A, import/export, gain market share strategies
Chinese—Romanian Governments— macro strategies, inter-regional integration “Sister Cities” Romania—China, amplify competitiveness in viniculture sector
Project’s Team — Know-how for gaining a management position | starting your own business | entrepreneurship competition
NJU MBA — Reputation | Access to research programs HORIZON 2020 China - Romania - EU | Program for continuous development NJU — BUES !
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3.4. KEY CONCEPTS
• Competitive Advantage
• Clusters
• Global Value Chain
• Sustainability
• Viniculture
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4. VINICULTURE
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–Paul Kingston (2001) (The Unfulfilled Promise of Cultural Capital Theory)
Wine —one of the food & beverage products with greatest added value
Wine —symbol of “cultural capital”
“Terroir”—the almost mystical combination of soil, aspect, microclimate, rainfall, and
cultivation; the soul of the unique taste of each region’s, each vineyard’s grape and wine
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CHINA’S VINICULTURE
1800-1892 last decades of the Qing Dynasty Zhang Bishi established vineyards using cultivars from the west.
Zhangyu Winery —China’s 1st Wine Company (Camillo, 2011)
Import Red Wine—luxury good, sophisticated product, used by middle-upper class, gift, “mianzi"
World’s top 5 importer (300% increase 2009–2012 (ITC, 2014)
Among world’s top 10 producers
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CHINA’S VINICULTURE
Consumption per capita 1 litter/ year | World average 7 litters/ year I France +45 litters/ year (USDA Kate Chan, 2012)
Wine industry 14% of total China beverage industry
2008-2012 annual medium growth rate + 20%, predicted increase +54% by 2015 (Bouzdine - Chameeva, 2013).
in the next decades China will become world’s biggest wine consumer market (Camillo, 2012)
Consumption
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CHINA’S VINICULTURE
Production Output (2010)
!
500+ wineries in operation
1,088,800 tons Total Wine Production (2010)
283,000 tons total Wine Imports (2010)
The highest producing provinces— Shandong, Jilin, Henan with 734,000 tons and 67% of the wine production in 2010 (USDA Kate Chan, 2012)
Major domestic players: Changyu, COFCO’s Great Wall, Dynasty control 36% of the market
Market Share of Top Wineries (2010)
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ROMANIA’S VINICULTURE
One of the oldest wine making traditions in the world —since more 2000 years ago—Dacia Kingdom
before 1944—Romanian wines appreciated for very good quality by Royal courts of France and Austria.
2008 —EU Wine Common Market Organisation (CMO), amplify competitiveness on international markets.
2008-2018 ~ € 40 mil. EU funds/year for modernising Romania’s viniculture
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ROMANIA’S VINICULTURE• Since 1927—OIV member
• International acknowledgement in major wine competitions
• One of the world’s largest wine producers 500,000 tons/year | EU Rank 6 | World Rank 13
• Exports 5-10% of the production
• Vineyard Area 210,000 hectares | Europe Rank 5
• Consumption per capita 25 litters/ year
• Major Wine players: Cotnari (Moldavian vineyard famous for centuries), Murfatlar (wine market leader in Ro), Vincon Vrancea, Recas, Jidvei
Top 5 Export Markets for Bottled Wine (value)
Source: ITC, Eurostat (2014)
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Romanian vineyards
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Romanian vineyards
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5. ROMANIA
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Explore the Carpathian Garden !
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European Union
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FAST FACTS• EU & NATO membership
• Location: South East Europe
• Area: 238,391 sq. km
• Population: aprox. 20 million people
• Currency: LEU (Lion)
• Capital: BUCHAREST aprox. 2 million people!
• Main Port : CONSTANTA
• Head of State: Mr. Basescu
• Great Union: 1 December 1918!!(Romania’s Institute of Statistics)
Romania’s Population
1%3%7%
89%
RomanianHungarianGypsyUkrainean, German, Other
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238,391 sq km
210,710 sq km⻓长江三⾓角洲8,000 km
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ROMANIA A close partner for Global Business• Rank 7 as one of the biggest markets in EU with a 20+ mil. population
| Biggest GDP in SE Europe
• Farmland 62% (from which arable land 40%) | forests 28%—Rich in natural resources, including agricultural land & significant mineral deposits
• Historical tradition of food manufacturing | Exports of farm and food products 40% growth rate up to 3 billion Euro (2012)
• 60% of mineral water reserves and ⅓ of all mineral waters of Europe
• Extensive maritime and river navigation facilities —⅓ Danube River, 200 km of Black Sea shore, largest and deepest port —Constanta Harbour
• Top IT outsourcing service provider worldwide | One of the most important software producers in CEE | 50+ centers and “incubators” for technological transfer | 50+ industrial parks !
(Sources: Romstania’s Institute of Statistics, Romanian Trade and Invest Center)
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Romania’s GDP Growth 2007-2014 & Predictions (Sources: World Bank, Romstania’s Institute of Statistics)
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GDP Breakdown
• GDP nominal value, current prices — 136.4 billion Euro (2011)
• Biggest GDP in SE Europe
• 2nd largest market in CEE Europe
• Agriculture, Hunting, Forestry 7% of GDP with a significant yoy increase
Agriculture, Hunting, ForestryIndustryConstructionServicesNet taxes
(Sources: Romania’s Institute of Statistics, Romanian Trade and Invest Center)
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Romania: Foreign Trade (Source: Romania’s Institute of Statistics, Romanian Trade and Invest Center)
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Romania: Top 10 Trade Partners (Source: Romania’s Institute of Statistics, Romanian Trade and Invest Center)
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ROMANIAN ICONS
Short movie time !
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!DRACULA
DRACULA - The famous Bram Stocker’s Novel Character!BRAN CASTLE ROMANIA
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GYMNASTICS!NADIA
COMANECI
SCORED THE 1ST PERFECT 10 AT 1976 MONTREAL OLYMPICS!Thousands of young girls fall in love with gymnastics each year.
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!SCULPTURE!BRANCUSI
ONE OF THE MOST ACCLAIMED MODERN SCULPTORS!CENTRE POMPIDOU PARIS
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OPERA!ANGELA
GHEORGHIU
Famous Opera singer, in 2012, Gheorghiu received the Nihil Sine Deo royal decoration from His Majesty King Michael I, honoring her
contribution to promoting Romanian culture in the world.
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!MUSIC!
ENESCU
“THE ROMANIAN RAPSODY” !WORLD RENOWNED CLASSICAL MUSIC COMPOSER
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WORLD’S 1ST JET PLANE!
COANDA!1910
Henri COANDA invented the 1st Jet Plane in 1910, for 1.5 billion people to get together each year.
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CULTURAL ROMANIA
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Crafts of RomaniaSapanta Merry Cemetery!• carved wooden crosses,
painted traditional Voronet blue (named for the nearby painted monastery)
• embellished with fanciful borders, renderings of the deceased and often anecdotes of their lives.
• An erstwhile town mayor is memorialized with anecdotes of his womanizing ways. !
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• Textile weaving is the most widespread craft in Romania, handed down from generation to generation
• The predominant fibers, wool and cotton !
• Wavers still weave and embroider just about every cloth article used in their homes, from colourful linen and cotton towels to window draperies, bedspreads, rugs, wall hangings, furniture throws and clothing.
Textiles
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NATURAL ROMANIA
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"Willow forests. Rush-beds thicker than the Brazilian jungle. Flooded reed islets. Lakes covered with a black haze of coots. Teams of tumultuous geese and ducks. Villages coated in reed, as if they try to hide away and become one with the tremendous immensity of rushes. Herds and herds of dancing cranes. Fishing vessels and bearded fishermen. Wild horses. Solitary storks of so many kinds. Mazy channels, overwhelmed by the willow domes, filled with fishing nets. Solitude, in every guise, at any time."
- Radu Anton Roman
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The Danube River• First attested by Herodot of Halicarnas (484 – 425 B.C.)
• The most international river on the planet (eight countries: Germany, Austria, Slovakia, Hungary, Croatia, Serbia, Romania, Bulgaria, and four capitals: Vienna, Bratislava, Budapest and Belgrade)
• Formed over a period of + 10,000 years
• The Danube Delta Biosphere Reserve world’s 3rd largest biodiversity in the world (+ 5,500 flora and fauna species), exceeded only by the Great Barrier Reef in Australia and the Galapagos Archipelago in Ecuador.
• Home to over 60% of the world’s population of pygmy cormorants (phalacrocorax pygmeus), 50% of red-breasted geese (branta ruficollis) and the largest number of white pelicans (pelecanus onocrotalus) and Dalmatian pelicans (pelecanus crispus) in Europe.
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The Carpathian Mountains• The Carpathian Mountains are home
to one of the largest undisturbed forests in Europe.
• 400 unique species of mammals, including the Carpathian chamois, call the Carpathian Mountains home.
• 60% of European brown bear population lives in the Carpathian Mountains.!
• The Carpathian Mountains are forming a semi-circle around Transylvania, which one of Romania's nine historical provinces.
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Short movie time !
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6. CONCLUSION & open discussion
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CONCLUSION
NOW WE HAVE:NJU MBA — BUES Agreement signed with the kindness of MBA Director Jing LI and coordinator teacher Mrs. YangYang GAO
Esteemed Professor Chunyan JIANG — Coordinator of the Chinese Team
More information about the China-Romania relations | Project | Viniculture | Romania
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CONCLUSION
THE NEXT ACTIONS WE TAKE:Middle of June — Final Selection of Chinese Team members
Middle of June — CH—RO Teams Complementarity
Middle of June—Selection of the Romanian—Chinese viniculture provinces and producers to be visited
Successfully complying with China MOSC application procedure
Begining of July — Separate Grant application with common project core
WE WIN THE GRANT COMPETITION !
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BIBLIOGRAPHY• Bartlett A. Cristopher (2003), “Global wine wars: new world challenges old (A)”, Case study 9-303-056, Harvard Business School
• Bouzdine-Chameeva, Tatiana; Zhang, Wenxiao (2013), “Wine distribution channel system in mature and newly growing markets: Germany versus China”, Wine Institute, http://www.wineinstitute.org
• USDA Kate Chan Research Report (2012), Marketing US Wine in China, GAIN Report No. 12805
• Camillo, A. Angelo (2012), A strategic determination of the determinants of wine consumption in China, Internationl Journal of Wine Business Research, Emerald Group, Vol. 24, No. 1
• Nakata, Cheryl, Antalis J.P. Erin (2013a), “Pathways to wine export innovation: a study of romanian winemakers”, Academy of Wine Business, http://academyofwinebusiness.com
• OIV (2011), “Vine and Wine Outlook (2010-2011)”, http://www.oiv.int/
• Romanian Statistics Institute www.ins.ro
• Romanian Trade and Invest Center
• World Bank www.worldbank.com
• International Trade Center www.trademap.org
• http://news.xinhuanet.com
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CHINA —ROMANIA NJU MBA — BUES PROJECT
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