YOUCAN MAREKET ENTRY REPORT

Backgrounds of YouCan

YOUCAN Foods International Limited is one subsidiary of YOUCAN Group.

YOUCAN found in 1991 and they start to sell the ice cream products in
Guangzhou of China. YOUCAN’s frozen food product line was introduced at
1995 and its market expanded to Zhejiang province that one part of eastern of
China at following. Today, YOUCAN’s distribution network includes over 280
distributors and 40 wholesalers such as Metro and Carrefour these famous
brand of retail industry.
As we know Singapore stay at the topics that they only have the summer
throughout the year, so there is no the seasonal fluctuation on the demand of
ice cream and Singapore is a stronghold to test international market. In 2004,
YOUCAN Foods international Co. Ltd the subsidiary company of YOUCAN
Group was successfully listed on the main board of Singapore Stock
Exchange. And they successful entry the Singapore market at 2006, however
by the effects of “SanLu incident” they leave the Singapore market at
temporarily. At now they have come back to the Singapore market again, they
will continue to expand their global market at the following. Youcan achieved
the ISO 9001 certification in 1997, ISO 14001 certification in 2003 as well as
the HACCP (Hazard Analysis & Critical Control Points) certification in 2004.
And they also own the Halal product certificate that provide by IFANCA.
Youcan’s ice cream products can now be found in all major supermarkets and
convenience stores in Singapore as well.
The company has a lofty mission that is “Bliss human health”. The company is
dedicated to improving people’s quality of life. It is the fundamental driving
force to make them keep progressing. YOUCAN’s staffs continuously develop
high-quality products to provide healthy products, kindly service to create the
high quality products with a good health to improve people’s quality of life.
The vision of company is to build a beautiful scenery line of health food to
promote the Chinese imagination to the world. Enjoy the healthy and tasty
meals are part of the humans’ pursuit. Committed to provide healthy and
secure product is the permanent goal of the YOUCAN. They will promote their
healthy concepts to the entire world to give people one fresh feeling on the ice
cream.

Market environment analysis

YouCan tries to choice listed their company at Singapore that aims at to make
their products go to the global market. Singapore is more closed to China and
at this place is convenient to YouCan to cover the Southeast Asia market that
in the tropical regions has the high level of population within one huge
potential market. At below I will try to do a simple analysis base on current
situation of Southeast Asia market.

Thailand

Basic situation

Thailand’s national area is 513,115 square kilometers; the coastline is 2,600

km. The Ministries of Thailand is divided into four domains, 73 House, the 596
counties. Bangkok is the political, economic and cultural center, it is also the
largest port city. The population of Thailand has more than 55 million, of which
Thai people (also known as Siamese) accounted for 53.2%, 27.4% of people
is Lao ren, the Chinese is10.2%, others 9.2%. Buddhism is the state religion;
in the total population over 90% of people believe in Buddhism. At the
southern of Thailand the Malay people believe the Muslims, there are a few of
people believe Christian, Hindu and Catholic.

Political

To encourage exports, the government of Thailand provides many of policies.

Such as, that they do not charge the tariffs for most of the export goods , and
they still have the high refund rate to the unfinished export products and raw
materials, by the ASEAN’s built that they even do not charge the export and
import goods for the members of ASEAN On the import side, in addition to
individual commodities, the Thai government basically did not take too
restrictive measures. And Thai government always keep the policies on attract
the foreign companies do the direct investment. At now Thailand is focusing
on the labor concentrated industry. However, the bad news is by the political
system’s effect the political situation is unstable that between 2006 with 2008
that take many times of political crisis and there are many people died in this
incidents.

Economic

Thailand is one developing country that they mainly rely on the tourist
industry, labor concentrated industry as the drive to take economic
development. From 1988 to 2009 that their average increasing rate of GDP is
around at 8%. The good news is that 40%-50% of GDP taken by the export
and import trade. However, by the planed economy system’s effect their
development is not balance. In Thailand the inflation rate always very high
and in recent years that their CPI rate is keeping increase that the average
increasing rate is 2.9%, hence it takes a big stresses on the investors. For
 another side, Thai government already abandon the related polices on control
the exchange rate for attract more international investors. However, this is one
dangerous thing that they do not have any abilities to prevent the financial
crisis that the safety of development is unstable. Hence, this is why the Thai
government has the high defects.

Unit: billion $

Year total export import variances

1950 4.9 2.6 2.1 0.5

1960 9.1 4.3 4.8 -0.5

1970 20.1 7.1 13.0 -5.9

1980 163.4 66.6 96.8 -30.2

1985 170.9 74.4 96.5 -22.1

1986 184.7 88.9 95.8 -6.9

1987 245.2 116.2 129.0 -12.8

1988 355.3 158.8 196.5 -37.6

1989 462.8 206.8 260.0 49.2

1990 562.0 236.0 326.0 -90.2

Social

Thailand is one high-context country that they own their special cultures. By
the China’s effect that they are mainly focus on the ceremonial actions and
most of them believe the Buddhism. They own the deep cultures on food and
they are taken more care on the food’s tastes. However, by the traditional
cultures’ affect that most of them the minds is closed. Such as they would like
save the money and they would like purchase the products within a low price
but less care on the quality. They think ethics is very import whatever you do
anything. And the white elephant is the halidom for most of people are very
respect it.

Technology

Actually, Thailand at this part is very weak. That their education system almost
as same as the Chinese education system. At recently, they find out their
weakness on technology hence they start to change the polices on education.
Such as, the government provides the scholarship for the talents go aboard
and they set the electronic fair to attract the foreign investors’ direct
investment. And they also build the partnership with such famous university,
for example Peking University, National University of Singapore etc to let them
help the government officers improve the knowledge and ability on the
management. Hence, in summary that Thailand mainly relies on the external
power to improve their technology part’s development. They still have a long
way need to go on this part.