Canton Fair Hidden Champions Show How Small Firms Reach Global Markets

Canton Fair Hidden Champions Show How Small Firms Reach Global Markets

The Canton Fair in Guangzhou is bustling on its third day, with crowds compared to the Spring Festival rush. The event, marking its 70th anniversary, highlights 'hidden champions'—small firms with global reach—and offers a look at the fair's history and atmosphere as international buyers and exporters connect.

Live: Canton Fair's 'hidden champions' – small firms, global reach. | Transcript:

Hi, greetings from Guanjo. This is G from CGTN. Today marks the third day of the Gujo fell, but it's still very busy outside as you can tell from the crowd downstairs. The last time I saw this many of people was during the spring festival rush. So this year actually marks the 70th anniversary of the Kton fell, but it's my very first time here. So I brought someone who knows this place much better than I do to show us around and to tell a little bit about the history and background of the candle. Hi. Hello. How are you? Nice to meet you again. Yes. How are you today?

Good. How are you? Busy again. I think so. Thank you. So, could you um introduce a little bit about yourself to our Hello, my name is Hans Kmer. I'm coming from uh Europe from Austria, Germany. And uh I'm here, you know, at the Canon Fair since 1989. Well, that's about like 40 years. It's about uh more than 30 years. And um you know and in chi to China I came more than 200 times. Yeah. I flew into China and uh I can see you know this development of China is unbelievable. You know since 1989 Yeah. And uh when you compare it today Yeah. It's a tremendous uh development I must say. I never met or never was in a country like this you know who developed so fast. You know, I know all the East

European countries. I know, you know, after they opened, you know, and I know how they developed and there, you know, when you compare it with here, it's absolutely uh unbelievable. Yeah. I still have a backpack with you. So, I'm curious what's inside your backpack. Oh, yeah. You know, there are a lot of secrets in there. Yeah. But also, you know, but I can show you some. Yeah. Sure. I believe a lot of precious memories. Yeah, sure. A lot of memories. Yeah. There is one notebook I bring this year because it is the 140 fair and that my notebook of 1989 that was the fair number 66. Yeah. When I attended the first time. Yeah. And you

can see you know after the pictures here you can see here you know all the negotiations you know just normal hammers at that time you know and for a tremendous cheap price you wouldn't believe yeah and uh here you see from 21st of October 1989 yeah Shandon machinery yeah at that time you should know there was only uh the stateowned companies who had export for license. Yeah. And only those people can export, you know, there were stateowned factories and stateowned export uh communities. Yeah. And so this is for instance, you know, different kind of uh um negotiations of uh very basic products. Yeah. Like hand product hand tools, normal hand tools, you know, agriculture tools.

Yeah. what you need for agriculture, what you need, you know, uh, in, you know, in the farm, you know, and, you know, of course, also on the construction side, you know, but all everything very basic. When you compare it to today, you know, today you don't use a hammer, you know, you use automatic nomatic, you know, nailing machine. Yeah. So, this is a big difference, you know. But you can now find here also, of course. Yeah. So how many notebooks do you have in total? Uh in totally I think I have more than 50. Yeah, more than 50. Yeah. So you know each uh come each fair I came here I write down all the notes you know first you know the first years I come only once a year but then you know after

I think 92 something like this I came here you know twice a year you know and of course you meet more and more companies you know so you have more and more opportunities to negotiate you know the product range was extended and so of course you know you write more and more. Yeah. So, what is your latest notebook? The latest one. Well, the latest. And of course, you know, in your bag. And of course, you know, also the notebooks got bigger. You see now, you know, this is from there a number two in 26. Yeah. This number two in 26. So, you already have a tube now. Yeah. Already two. Yeah. And you get it's getting thicker also. Yeah. As you see, much more operation.

Yeah. And you see here we have uh you know for instance this is a very advanced tool you know what you have here you know for pressing tools you know before you know you connect the pipes by threading now you know you do it not threading anymore you do the pressing and where can you find the pressing tools here on the count fair and not only one boot you know you have here maybe six seven boots you know who have all that kind of pipe tools you know very advanced pipe tools because you know labor is getting more and more expensive. So you need to shorten the labor you know which is involved. So you have also more advanced technologies and this is you know what we were looking here you know and this is also another

company you know Kaiken I know very well you know for many times you know we will develop with them you know new products. Yeah. A new product range for professional very professional core drilling. That means cement or concrete drilling machines. Yeah. And also we will um develop with them together uh new machines for magnetic fields. So you mentioned about like advanced pipelines and some tools. Actually this totally out of my knowledge. So, could you show me how it looks like at the booth and what makes it like intelligent and advanced compared to old days?

I think we should go somewhere. Yeah. To a booth and have a look. Huh? Okay. Thank you. You're welcome. So, where are we heading to this time? Pardon me. Where should we heading to now? Yeah, we go down to 10.2. There is uh you know the power tool uh division. Yeah. And there are a lot of power tool uh um boots and I think uh we should go there and have a look. Okay. Yeah. We go to one of the very advanced companies. Yeah. And uh we will see if we find there some engineers. Maybe they can explain us some uh products. Yeah. And we will see what we're going to do. Explanation.

Yeah. Sure. Yeah. Of course. No, you see today still a lot of people here. Yeah. I wonder if like does the amount of people increase by each year? Yeah. Each year, you know, when you come here, you know, first of all, you know, the exhibition halls, you know, extended. Yeah. And uh you have more uh ex exhibitors. Yeah. And of course also uh much more uh visitors. Yeah. And I hope buyers. Yeah. and not only visitors. Yeah. Oh yeah. You mention buyers. How about the demand of buyers and also the other I hear you know that there are several

hundred,000 buyers you know who come at the first phase. Yeah. And uh we go in there uh at the first phase and uh but also here that the first phase is the strongest. Yeah. About 55% of all buyers come at the first phase. Yeah. Second phase is still busy. Third phase, you know, getting a little slower. Yeah. Okay. We go to the company Dong Cheng. Huh? Yeah. You see here the robot. Yes. Interesting. You see? So, what is it? You have This is a robot for drilling. Is this a robot for drilling?

Huh? Yes. Exactly. So, so you don't need to drill, you know, by hand anymore. You don't need to go up the ladder. Yeah. You take the robot and go up or am I right? Yes, you're right. So, can you explain me a little bit about the robot? Actually, what's the difference between the normal robot and the DCK robot? Uh we have equipped with AI technology on that and this one has a uh like smart vision to help the hammer drill. Yeah. The hammer drill. Yeah. To help the hammer drill to on the ceiling. Oh, thanks. Uh helps the hammer drill to plan the power position automatically.

Yes. And it controls the uh exactly where and how deep of the uh drill need your drill. Yes. Is [snorts] it also controlling the torque and everything? Yes. Exactly. The angle, the torque, the depths like that. Yeah. So this is a very advanced you know it is very difficult you know to drill a hole into the ceiling you know when you need to go up the leather or you know you need to make a stage you know to drill there and when you have this automatic you know this robot you know with the long arm you know it's much more easier.

Yes. Especially, you know, when you need to drill, you know, something like 100, 200 holes, you know, into the ceiling, you know, or if you want need to install uh electrician and so on, you know, so this is quite an Yes, I was I must say, you know, very advanced uh tool what you have here. Thanks. Do you have any interest for it? It depends on you know uh of course you know for the job side for the construction side I think this would be uh very interesting. Is this a mockup sample or is it already in mass production? Uh actually uh it's just in still in a pre-production testing but we validated it in a range of top and a real world condition. Uh the performance is uh really as good as we designed.

Okay. So you're ready for production. Uh it's hard to say maybe we need to find a more uh conditions to make more test make it more durable. Yes. And when you think when do you think you will have uh you know production when you when can you start with the production? I think maybe next year. Do you have already some price idea? Uh just roughly but it's a little expensive uh compared with the general. It's not a general hammer drill. So what is your expectation? What is your first calculations? What do you have now at the moment?

Uh you mean the price or uh it's let's just keep it as a secret. Yes. Okay. Thank you. What's like which like from which countries that buy the most interest? Uh normally it's from Europe and married customers. Yes. Why appease to them? Sorry. Why it appears to them? Why? Because uh you know why in this big countries most of them they need they have the big projects and it's uh has le has uh how to say uh less human source. So the automatic machine will help them to uh save the cost and yes I would say you know we keep in contact.

Yeah. And stay in contact and uh you know after they had the real calculation you know we should talk about you know uh this kind of tool. Okay. Thank you. I thank you very much. Nice to meet you. Thank you. Okay. Thank you. So can we go to about the product that you have expertise in? Well, you know, I think we should go to a power tool factory like a tissue. Yeah. Why? Why don't Because uh first of all, you know, I know them very well. Second, I do a lot of business with them. Yeah. I, you know, started with them, you know, uh more than 15 years ago when they were a small factory and uh we developed

together that factory. Yeah. More and more. And today it's a I would say you know for hammer drill is one of the best and one of the most advanced factories in uh oh so in Yong Khan or I would say in China. Yeah in those are the power tools where I will see I can see here is the managing director. Hello. Nice to see you. Hello. Hi. Nice to see you. Hello. So can your girlfriend? Yes, also. But maybe I talk to Laba. Huh? Negotiation here. So hello. Nice to see you again. Everything fine. So today, you know, we have uh some live stream.

Yeah. And uh so we want to see a little bit about your advanced products also. Yeah. So could you let someone to introduce the product the latest ones? Hi. Okay. Hello. Can you introduce us a little bit your factory? Yeah, of course. It's like uh we are we are located we are the hidden champion of the rotating and devolution hammer and we already apply for the AVG the automation control the control system and manage our manufacturing all the already produced the product and all the raw material have been input automatally to the our assemble line. So this help us reduce a lot of the labor cost and uh improve the efficiency.

Could you like just show some of your latest models that we are most proud of? Yeah, here the this is our latest development product and this is the N product. Yeah, this is show. But it's for drilling for Yeah, it's for drilling. And this product has been developed as considered environmental friendly. Yes, it's including the dust collector. Yeah, the dust collector and uh very well advanced I must say. There's basically no dust producing while drilling and also doesn't affect the drilling efficiency only about 10 seconds for and also can record the

drilling. You can adjust this. Yeah. To the drilling depos also recorded. So you can make the different hole with the same depth easily. Yes. So could you like show us like how it record the length? The depth. Oh the depth. Yeah, also been here a little bit. How to record? And there's a record here. And uh if you want this dips here, you just lock here. You can just lock and you will push to the this dips. How? Okay, that's the maximum. And if you want longer, got longer. It's been locked. just drill to

the most deepest part. So pretty easy. You want the 50 cmters, just put the 17 15 cm. If you want 20 cm, just put 7 20 cm. You don't need to measure it. Just put a record here and then start it. Push to the button. That's easy, right? So how to connect there's the down here is a vacuum collect connect with the battery up here. So is no need individual battery. Just connect the battery down here and when you start a machine the vacuum automatically started. I see. So make it greener.

Yeah. Really easy to use, friendly, environmental friendly and also it protect the workers health. Protect the workers itself. He doesn't need a mask. Yeah. No need a mask. No mask. Yeah. Mhm. Yeah. Very well advanced. Is it already uh in mass production? Yeah, we already in the in producing it and uh probably a lot like today and yesterday a lot of customer very interested. They like it. Yeah, they like it. The first thing they did you already collect orders? Yeah, we do. You do? Already shipments made. that microphone.

We already sold to third around 30 uh countries and they all pretty have good feedbacks and they like it. They pretty like it and they are considered buying more. Congratulations. Yeah. That's a good news. I think we have also already one shipment. Huh? Uhhuh. Yeah. Yes. Already. Yeah. I we already ordered and I think it's already good deal. Yeah. So I'm wondering because uh you mentioned that you have worked with them since the very beginning. So what makes you stay so low with them?

Well, first of all, you know, um the success, the speed they build up the factory. Yeah. From uh 100 or 200 people. No, they started with 50 people. Yeah. And now they have more than 1,000 people. Yeah. And that's something you know what you can only see you know here in China you know that factories develop so fast. On the other hand you know when you see a product like this what we saw just now with the dust collector this takes about 6 7 months to develop and that's it and then it's already on the market. So this is a real big speed. Yeah. Sure.

Great speed. And this is something you know what I like you know I like the speed. This is inspiring me you know to do more and more you know with the Chinese factories because of the speed and of course also technology you know we have advanced more and more advanced engineers and uh also the universities you know uh bring out you know a lot of engineers every year you know skilled very well educated people and this is you know what makes you know the difference to maybe other countries. So I'm wondering because uh I just met the boss of the company and also uh their children. I'm wondering does this kind of cooperation and relationship has been passed down to the children and

passed down to your colleagues that have joined your company lately? Yes. Um this is something you know uh what we really have here you know this cooperation you know and the long-term cooperation you know and uh you know in English you in Chinese you say guanchi yeah and this is a very important words you know guani you need to have guani and when you have guanchi you have you know we can you know create a win-win situation this is also a very important And uh I think you know especially also with M Mr. Lee. Yeah. He is the owner of the factory. Yeah. We could uh develop a very nice uh win-win situation together. So I'm wondering like uh does there any changes during your cooperation over the

years? The changes the way you cooperate with the Chinese company here. The way of the corporation you know is uh well it's a quite easy you know you um on one side you know they develop products we work we develop products together. Yeah. on the other side you know they develop the products by themsel and then they uh introduce the products to us you know and when the price is interesting when the product is interesting you know uh then of course we do the business yeah [snorts] so I think this actually really impressed me a lot because all those tools all those machines actually I feel very unfamiliar and I think that the like the most used products in our daily life. But normally we will ignore them.

We just like focus on the robots and yeah those kind of well those products here are made you know for craftsmen. Yeah. And for craftsmen that means you know uh of course you know as we saw you know in that previous uh factory they have also now robots. they change to robots. But on the other side, we need still, you know, the craftsmen and I think more than more, you know, because um craftsmen they, you know, they build a house, they repair a house and this is something what we found the foundation of our life and the foundation, you know, of the success of a country, you know, if we wouldn't have any craftsman and I always say, you know, not everybody can study You know we need also craftsmen because

if we have only studied people uh people then you know who will do the work. Yeah. And for the work you need the tools what you see here you know and I find also interesting in this section is that they don't have those kind of big names. It's more like the hidden champions of the manufacturers right. So what did how do you think of those like SMAs in this kind of industry? You know as I said you know the hidden champions each of those factories could be a hidden champion. Yeah. Each of them and um it's the entrepreneurship of those people you know who take the risk who build a factory. Yeah. Who buy the machinery. Yeah. and invest a lot of and invest millions and millions of uh R&B you know to be successful and then

you know also that they need they have they need to have the right people yeah and I always said you know if China wouldn't have had you know all the young ladies who started who speak English and that's really magical. Yeah. So this is uh something you know what we okay we speed up a little bit. Yeah we see here a lot of tools you know we're coming to a section you know where um we have uh more and more basic tools. Yeah. And uh as you see also power tools. But so I think like that is what is interesting like um 40 years ago you come here for basic tools but now the tools are becoming cordless intelligent automated and connected so I think it's more like our cooperation

like on one side the tools are getting smarter on but on the other side the friendship is getting deeper right sure it's alo very important part you to have uh to make friends, to support friends and uh and to have friends. This is uh you know it's also something what drives you know to come here not only you know of course you know today you can do a lot in the internet you can source a lot in the internet you know you go online and you see a lot of products so basically you don't really need to come so often you know to China but if you want to meet your friends, you know, and if you want to talk to them, if you want to have, you know, some dinner with them. Yeah. And if you want to um to live your friendship, you know,

friendship means meeting. Friendship means, you know, that you come together. Friendship means that you have a dinner together or you have lunch together, you know, or sometimes, you know, even for leisure, you go just go somewhere, you know, and uh take a rest. Yeah. Together. And uh this is something and or you know, I was so often invited to wedding parties. Yeah. Or you know, you join the wedding party, you know, of the second generation. Yeah. So this is something you know what makes it very interesting and what makes it you know yeah where to come here. Yeah. So thank you so much for showing me the products that I have never known and also I really looking forward that

you will come to China more often and meet up in person to build our relationship and our friendship. Yes. So that's all for today's live. Now today is day three and we have more excitement on the way. Absolutely. Much more. So, thank you.

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