In China, over 80% of consumers buy imported products: the most consumed products are those required on a daily basis.
The Chinese are big fans of e-Commerce and we can see a rapid development of the food e-Commerce market. Chinese consumers appreciate being able to purchase products on the internet with many new platforms available for online food shopping.
An increasing demand for imported products
« By 2018, China is expected to become the top importer of foreign food products, with the total value of food imports set to reach RMB 480 billion (US$77 billion). »
According to the World Trade Organization China surpassed the United States to become the world’s largest importer of agricultural products. Even with 500 million farmers, China has been unable to meet the country’s growing demand for grains, soy beans and other commodities.
Providing enough food at acceptable levels of quality and at an affordable cost is shaping up to be one of China’s most challenging problems.
Lax quality control, production shortcuts, urbanization and rising consumer spending are all combining to turn the spotlight on China’s food supply chain, creating problems — but also opportunities — for international companies doing business in the country.
Chinese Middle Class want better products
China’s middle class is increasingly turning to imported products in all food categories.
While imported food used to be rare and expensive, the recent surge in domestic commodity prices, driven by inflation and higher costs, has made foreign food products more affordable.
The increased demand for foreign food imports brought on by domestic food scandals is expected to grow. Foreign food imports have annually increased 15 percent in recent years, and the amount of food imports has more than quadrupled in the last ten years.
Example : imported fresh food
In a June 2015 survey of internet users in China, 24.5% indicated they had purchased fresh food digitally, and nearly half were interested in doing so although they hadn’t already.
Among digital grocery shoppers who do buy fresh food online, imported fruits were the most popular items of purchase, followed by seafood, domestic fruits and dairy products. Nearly half of digital fresh food buyers in China said they bought these items online because prices were good, while about one-third said it was for convenience.
Most of this group buys fresh food online only occasionally, though around one-third does so on at least on a monthly basis.
What would turn them off? Products that don’t match the online description, a lack of actual freshness, high delivery charges followed by difficulty in getting same-day deliveries and also concerns with damage to products during delivery.
Adapt your brand
To seize these lucrative opportunities in China, you generally need to develop your brand and make it become famous. Our agency offers its services to companies:
– Products’ sales points
– Support with communication
– Packaging/specific Ads
– Definition of a product price from a market price
To utilize our connections with local specialists and professionals in your sector, to develop press relations can be an efficient strategy:
– Specialized press relations
– General press relations
– Awareness campaign
– PR online
The heart of our work is concerned with increasing brand notoriety via the most efficient way in China: Internet. It is the least expensive way and it allows for more specific consumer/client targeting. Here are the online solutions that the agency offers:
– E-reputation management
– KOL campaign
– Buzz marketing
– Web-marketing campaigns
More information about our agency HERE