Small Business Finance News
Michigan Targets China With Export Pilot Program
Written by Tim Morral
The Pure Michigan Export Now initiative will help Michigan companies take advantage of opportunities in China's rapidly expanding consumer goods marketplace.
In a partnership between export services provider, Export Now, and the Michigan Economic Development Corporation, a new pilot program will help Michigan consumer goods companies tap into China -- the world's fastest growing economy.
The Pure Michigan Export Now program is designed to help Michigan businesses sell products directly to Chinese consumers using Export Now's online sales platform.
"Export Now's unique combination of services further broadens the state's Pure Michigan Business Connect program by reenergizing the focus on exporting and economic gardening. The program will offer Michigan companies the opportunity to test their products in the China consumer market with limited risk," said MEDC President and CEO Michael A. Finney.
"This unique exporting program builds on Governor Rick Snyder's mission to China last fall, where we met with government officials and business leaders to bring new job-creating investments here and open doors for Michigan businesses."
Under the terms of the program, Michigan entrepreneurs and their companies will be required to pay an annual fee of $1,000 to enroll in the Export Now logistics platform, substantially less than Export Now's typical $3,000 per year enrollment fee. Michigan businesses will then be able to ship products on consignment to Export Now's California depot, where shipments are consolidated and forwarded to the company's distribution center in Shanghai.
Companies that participate in the program are required to pay a transaction cost for each sale, but even after expenses like shipping and overhead are factored in, Michigan products will be made available to Chinese consumers at prices that are similar to the prices paid by U.S. shoppers, including food and agricultural products.
"Today's announcement opens up one of the world's largest markets to Michigan's food and agriculture businesses," said Michigan Department of Agriculture and Rural Development Director Keith Creagh. "Our state's high quality food and agriculture products are sought by Chinese consumers. This pilot program utilizes technology to provide a new innovative export opportunity for Michigan's food and agriculture companies as they explore new markets."
For more on the MEDC and its initiatives, visit: MichiganAdvantage.org.
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