Horizon Wellness aims to export Finnish wellness technology and services to China. The company was established at the beginning of the year and is based in Jyväskylä. It is backed by Professor Sulin Cheng of the University of Jyväskylä, a wellness technology professional with contacts in China, and collaboration with channel marketing company MT Brand.
We first got the idea of exporting wellness services while working on joint projects with Sulin Cheng in 2004. Then we started looking for the right business model and partners in China," says Thomas Lemström, a Managing Partner of MT Brand and member of the Horizon Wellness board.
The company's business idea is to provide manufacturers of high-tech products in the health, wellness and sports sectors with a full set of support services and expertise. "Our customers get an established sales organisation in China, contacts with manufacturers, support in localising products for the target markets and, if required, training and product development. We can deliver all the support that companies need in a single package," Lemström says.
At the moment Horizon Wellness is conducting negotiations with Finnish companies about the potential for entering the Chinese markets. "We are presently seeking around five Finnish companies with products that could be ready for launching in the Chinese markets. We will test market the products to assess their potential in China in order to identify the ones that perform best," Lemström explains.
Even though its search for partners takes in the whole of Finland - and will extend to other European countries in future - Horizon Wellness plans to remain in Jyväskylä. "Jyväskylä is a good location to establish this kind of business. It's home to a wealth of expertise and research in the area of health promotion." The University of Jyväskylä also features in the company's plans.
"One of the areas where we are planning to work with the university concerns the scientific verification of the health-promoting effects of products. It could also be possible to export education and training to China, because China doesn't really have well-established certified training for many professions within the wellness field," Lemström states. In China the health and wellness sector is growing overall.
"Consumption habits are changing and urbanisation is creating new types of needs. The health market is actually growing faster than the national economy," Lemström explains. Besides its base in Finland, Horizon Wellness is establishing a wellness technology centre in Wuxi City near Shanghai.
"Its location in the market will enable the centre to help health technology companies more effectively. The centre has benefited from a municipal financing programme and has the support of Chinese partners, which shows the level of confidence in it," Lemström says.
It is not possible to be successful in China with the same methods, products, prices or volumes as in Finland. Horizon Wellness helps its customers to identify the best aspects of each product and to adapt products to suit the market.
"Costs are on a totally different scale in Finland than in China. Products that are made here are often too expensive for the Chinese markets. However, we can also arrange for production in China." Design is another important aspect that needs to be taken into consideration when seeking to launch products in China. "In Finland design is often viewed in functional terms, which is not necessarily the right way to get Chinese people interested. Our local network can assess both the form and content of the product and provide help in adapting it to suit the market."
In addition to costs and design, the size and geographical diversity of the target market must be taken into account. "China is a huge country - like an entire continent. Companies have to realise that even within China there are different customer groups."
"We have the necessary knowledge of the country and contacts not only on the academic level but also in marketing and production. We have a genuinely new approach to the export of skills, expertise and products," Lemström concludes.
words by nelli korpi, photo by pekka rötkönen