China connection

James White, left, David Yu and Yanxi Guo have big plans for Kiwi exports to Asia. Photo / Supplied

A pair of young Kiwi entrepreneurs have taken it upon themselves to represent New Zealand at a Northeast Asia trade expo in China this week.

The move is part of a $1 million investment David Yu and James White are making to ramp up exports of New Zealand products to the region.

They are evangelical about the potential for New Zealand goods in Asia.

"There's a huge demand for our products, I mean huge," Yu said. "Honestly, I'm crying trying to get our product out."

Yu started his first business at 17 - a gaming retail chain that now has five New Zealand outlets and a couple of dozen franchises across Asia.

The Taiwanese/New Zealander and White, his long-time business partner, have now turned their attention to promoting clean, green Kiwi goods.

Everything from honey and wine to healthcare and cosmetics are on their stand at the Jilin Northeast Asia Investment and Trade Expo, held in the northern Jilin province.

Yu has also just opened two retail stores in Taipei that sell New Zealand beauty products, such as the Simunovich family's Olive and Tebe ranges. A Tebe spa in the city will follow.

The pair's clients include 10 wineries and they even export their own brand of honey.

Yu estimated that by the end of the year he would have invested $1 million in the projects. "We are an incubator for these brands. Doing business in Asia is very, very different. I'm a great trader because I know how. It's who you know in Asia, not what you know."

These connections have enabled Yu and White to set up a stand at the invitation-only Jilin expo.

The six-day event is expected to draw 100,000 visitors a day.

White said he and Yu offered Kiwi companies something unique because they operated in New Zealand and China.

His fiancee Yanxi Guo is based in China running the importing operation, while he handles the New Zealand end.

"It removes many of the normal risks associated with doing business in China and, believe me, there's a lot of risk."

White said New Zealand suppliers had a hard time when it came to understanding the market.

CJ Pask managing director Kate Radburnd admits freely that she is one of those suppliers and says the Hawke's Bay winery has had mixed success with China, until now.

In the past couple of months, it has shipped more than 36,000 bottles, making the country its fourth-biggest export destination. The winery sees "immense potential" in its association with Yu.

"We have sent containers of wine [to China before] but it hasn't been ongoing business. Whereas this is the first time where we've seen continuity and I'm sure it's because of David's relationships."

Branka Simunovich said she probably would have moved her brand to China at some stage but, with Yu's investment and enthusiasm, sales of her Olive and Tebe beauty ranges were booming.

It now sends more of its body milk product to Taipei than it sells in New Zealand in a year.

"That's all happened in about six months. That's amazing and that's only because of David."

New Zealand Trade and Enterprise's China director, Tim Green, said there were thousands of trade fairs in the region each year and Jilin wasn't on the agency's radar.

However, Yu and White were "absolutely" the sort of people New Zealand businesses needed to represent their interests in the market. "The more of these sorts of channels we can establish the better."

Yu said New Zealand's free trade agreement with China was giving it an advantage over the rest of the world but it would be a narrow window and Kiwis needed to act. "Everyone says to me, 'Oh yeah, we have to be in China' but no one's doing anything about it."

Young gun

Name: David Yu

Age: 31

Born: Taiwan, emigrated to New Zealand 1989

Career: Set up the Vagabond and Livewire gaming stores in 1996. Company makes the Deloitte Fast 50 ranking in 2004. Yu nominated for Ernst & Young Entrepreneur of the Year 2008.