Recommendations for the Chinese market: Strengthen promotion in inland cities, highlighting the origin ...

Buyers seek to limit travel and large crowds, people seek to move away from large supermarkets, preferring smaller outlets closer to home.

The Fresh and Dried Fruit in China 2020 study, prepared by the Market Intelligence area of ​​ProChile's Strategic Development Directorate, addresses the reality of various fruits in the Chinese market and establishes recommendations so that products can better compete .

In the case of blueberries, it reports that China imported a total of USD 175,4 million in 2019, of which Chile achieved a 47,6% market share. In addition to enjoying zero tariffs, in a general reality that reaches 30%.

Trends

Regarding the general trends of the Chinese market and consumer, the study assures that "the changes in consumption trends that we have seen in China in recent years are characteristics common to countries with rapid industrialization: increased income, urban life, better education, postponed life stages and increased mobility. However, there are some factors unique to China; such as the one-child policy (now repealed) and the marked economic imbalances between the regions, which make the trend in China unique "

To this must be added the factor of the current health crisis, which among other things has profoundly changed the economic paradigms. In this context of cross-cutting uncertainty that has been generated, trends have emerged that are expected to continue after the pandemic.

Among the market trends, the great increase in e-Commerce stands out.

According to the study, the demand for online shopping has increased significantly and the main platforms offer a large volume of products sent directly to homes.

"Online retailer Pinduoduo has even created a special section for 'anti-epidemic agricultural products.' The epidemic is likely to spur even faster growth in China's digital economy, especially among older people and rural residents. This could lead to new patterns of online consumption, based on the change in age of consumers and their place of origin ”.

Resurgence of neighborhood commerce

Buyers seek to limit travel and large crowds, people seek to move away from large supermarkets, preferring smaller outlets closer to home, so it is projected that neighborhood supermarkets, minimarkets and collection points of products purchased online may show an upward trend.

Food safety

Increased awareness of health, food safety and food safety is likely to become a mainstream trend, which could especially benefit companies using blockchain systems, big data, and other new technologies to ensure traceability and exercise accountability. stronger supervision of production.

Consumer goods

China produced 184 thousand tons in its 2018 season, which runs from March to mid-August. It is an industry with low yields, which are around 4 tons / ha. and the per capita consumption is 2,7 grams per year. Chinese consumer preferences are for larger size, good looks, texture, shelf life, and high sugar content. Preferring quality over price.

Increased concern for healthy eating has increased demand for organic blueberries, the study says.

Recommendations

The ProChile study emphasizes that quality and country image are very important, "it is essential to relate the product to its country of origin", so it is recommended to launch launches, campaigns, tastings and promotions in the sales channels.

The important thing is to ensure the quality, appearance and freshness of the product. Analyze and constantly improve competitive advantages. Develop informative material aimed at importers, supermarkets, the food industry and consumers, in order to educate them regarding the differentiating attributes of the product.

“Once the pandemic passes: Visit the wholesale fruit market in different cities to analyze the current situation of local and imported fruit. Invite importers of fresh fruits to Chile to visit production and packing centers to have more confidence. Attend or participate in international trade shows to meet buyers. Strengthen promotion in interior cities, highlighting the origin, in order to position the country brand and differentiate it from local competition. It is recommended to strengthen the promotion efforts in the e-Commerce channel ”, concludes the study by the ProChile Strategic Development Department.

Source
Martín Carrillo O. - Blueberries Consulting

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