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Imported F&B Products: How Attractive is Your Product in China?

With food and beverage events like FHC and SIAL China hosted each year and which gather visitors and exhibitors from all around the world, it is easy to realize many producers are already taking advantage of the great potential Chinese consumers represent for their imported products.

China, which represents ¼ of the world population, has indeed become the largest global food and agricultural product importer since 2011 (WTO).

How big really is the market for imported F&B products? What are the elements fueling it? Are your products in demand and what are the trends?

Follow us while we investigate the Chinese market for imported F&B products. ASI Solutions has been working with foreign companies for more than 10 years, making their expansion toward Asia easier and more effective. From origin to your final customer, from managing the export & import on your behalf to acting as your representative agent in China, we provide built-to-suit solutions adapted to your business needs.

Key Figures & Facts

It is sometimes complicated to evaluate what a market is really like, especially if one has never introduced a product to it yet. Here are some key figures to better grasp what the Chinese market for imported F&B products is about.

00
billion USD of imported food products (2018), which is more than the GDP of Luxembourg or Myanmar. The average growth rate of imported food products in China is 5.7%.

What Fuels the Demand?

Wanting to take advantage of the opportunities the market represents is one thing, but understanding where the demand comes from is essential if one wants to undertake a successful journey. Too often do people think, just because the Chinese population is huge, that attracting only 1% of this consumer base is enough. Yet, one should treat this market as one treats any other: by understanding its characteristics. We thus encourage any company interested in this market to invest in research and development on a regular basis.

What then is at the origin of this growing demand for imported food?

First, a general increase in the population’s disposable income makes Chinese more prone to spend this extra money on imported and qualitative food products. China has indeed been switching a consumption-led growth which, combined with an increase in income, led to consumer spending per capita on food and beverage to increase by 21 between 2012 and 2017 (Chinese National Bureau of Statistics).

Foreign F&B products are thought to be more trustable, especially after a series of domestic food scandals. Again, people tend to spend the extra-income we touched upon on products associated with food safety and health.

Third, imported products are now easier to access, even passed the first tier cities. Both physical and online shops now offer a wide range of foreign products to the Chinese consumers.

If you are already familiar with the Chinese economy, you might already know how big the E-Commerce, in particular, is and how easy it is to find any product one can think of, either on Taobao, Tmall, JD, or even on WeChat stores.

Who would be your typical consumer?

  • Monthly salary of 8000RMB
  • Married with one child
  • 1st tier city, those able to afford imported food even though it is spreading
  • Purchases imported food 2-3 times a month

Which Products Are in Demand? What Are the Trends?

While the 10 most imported food categories in 2017 featured meat, edible oil, dairy products, aquatic products, grain products and alcoholic beverage in first positions, the ranking for processed products imports varies slightly with processed/prepared dairy products coming first, followed by processed/prepared seafood, food preparations, processed/preserved meats and processed fruit.

Source: General Administration of Customs, P.R. China

 

Because of the general rise in disposable income China experiences, the Chinese diets are evolving and integrating more and more meat products. The tastes are also evolving and, while Asians in general tended to not consumer a lot of dairy products, the trend is now inverting with them developing a taste for milk, yogurts, and cheese.

A category of products that has the wind in its sails are the so-called “health foods”. This particular market weighted more than USD 144.3 billion as early as 2016. In parallel, the organic food market has tripled since 2007. This concern for health and food safety, which is actually the most important criteria for consuming foreign products in tier one and two cities (IPSOS), leads consumers to pay extra money to access products they trust.

Once imported in China, for the qualities of your product to be recognized, you can investigate the possibility of being labelled as food with specific health functions (yet which do not treat diseases), or nutritional supplements.

Imported snacks are also pretty popular, which can only make sense in a society where commuting is becoming more and more common and thus on-the-go snacks an attractive option.

 

ASI Solutions has been offering for more than ten years a wide range of services and built-to-suit solutions to make exporting to China easier for you.

Discover our full range of solutions!

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How to Import Your Foreign Product into China: A Visual Guide

Starting your business of foreign products in China can be a hassle. From exporting, licensing, passing customs, to selling… The tasks are never-ending!

ASI Solutions has been providing its expertise on importing into China for more than 10 years now. We handle everything from origin to your final customer’s doorstep. Our aim? Make managing your operations easier, for you to concentrate on what matters!

Why Is It Worth Taking the Leap?

A Quick Overview

What Are the Steps?

A Quick Overview

Before Exporting to China

Make sure your product can be imported. The products are divided into 3 categories: prohibited, restricted and permitted goods. Apart from products whom prohibition is obvious (explosives, arms, foods, medicines and other articles coming from disease-stricken areas) some items considered more common are also submitted to restrictions. For example raw materials for plastic, polyester, raw materials for chemical fibers, cotton, etc. They require quota and licenses.
As such, it is essential to check if your product can be imported and under which conditions in accordance with the Chinese legislation.

It is mandatory to check if your product complies with the GB (国标, Guóbiāo) standards. These standards serve as basis for testing the products and, depending on their prefix code (GB, GB/T, GB/Z), they are identified as mandatory or voluntary. While 85% are optional, we still encourage you to follow them anyway as it can enhance the brand of your product. Even though deriving from the ISO norms, the rules are stricter when it comes to products such as edible ones, cosmetics, or when they have an impact on the safety.
Complying with the GB standards means going through testing (in a certified laboratory in China), and using a compliant labelling. For more information on this topic, check here!

 

 

Breaking Down the Export Process

with ASI Solutions

What Can We Do for You?

  • Regulation advice: we are experts in Chinese, and also Vietnamese, regulations. We are able to advise you in order to tailor your export strategy.
  • Resources and information: we provide you with the resources and information you need thanks to our tools and experts as to guarantee you a successful implantation.
  • Logistics: working with us means you have access to all our infrastructures and services in order to guarantee a qualitative door-to-door service using our licenses (import/export) in China, for B2C and B2B.
  • Distribution: ASI Solutions is also a distributor specialized in Fashion, Cosmetics, and F&B for the wholesale and Horeca sectors. As such, we often offer different collaboration methods for the distribution. We provide Supply Chain & Financing services to help you open new sales channels and assist you on your long-term development in China. We finally can directly purchase your products..
  • E-Commerce: E-Commerce being booming in China, many companies use online selling as their preferred choice. We offer our clients the opportunity to work with our E-Commerce partners, which are among the most recognized in their field.
  • Communication: take advantage of a network of experienced partners to administrate the social networks of your company in China.
  • Administrative: we are strong of a solid regulatory expertise, we accompany you for your administrative needs.
  • Finance: we help you manage your financial operation in China.

Work with an experienced facilitator to make launching your business in China a success!

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Massive sales during Qixi festival: What Foreign Businesses Need to Know

The legend of the love story between Niulang and Zhinu has been recounted for generations in Chinese households, leading to the celebration of the Qixi festival all across the country. However, with the expansion of the country’s economy and of new technology, ancient traditions – if not disappeared – faded away in favor of consumption and gift giving.

What Is Qixi Festival About and What Are the Trends?

The Chinese Valentine’s day falls every year on the seventh day of the seventh month on lunar Chinese calendar (which is the reason why it is called the double seventh). This year has been a money-spinner for many companies. Ctrip (China’s biggest online travel agency) for instance, published a report with data showing that more than 200.000 customers booked trips during Qixi festival, to destinations like Thailand, Japan, Hong Kong and Indonesia. In a noteworthy trend, the number of solo travelers increased during this period. Surprisingly, singles’ consumption is high during this period!
On the other hand, cosmetics’ and jewelry’s sales increased by 186.7 percent and 122 percent respectively. During this festival, Chinese men tend to offer a lot of gifts, and chocolate to their significant other. A recent report released by Suning showed that the demand of flower bouquets over this period substantially exceeded the demand during the Western Valentine’s Day!
Another sector recorded a significant increase in sales: Cinemas! Yes! To celebrate Qixi, Chinese couples prefer to go to the cinema in order to watch a romantic movie. It is also a great occasion to escape the heatwave and enjoy an intimate moment with your lover!

What Are the Best Practices for Companies During this Period?

While thinking of expanding to China, companies must take into consideration including special promotions or designing special packaging for the occasion Qixi festival. It is indeed not a national holiday. Yet many modern Chinese, particularly youngsters, look forward to it, spending money on expensive and luxurious items to treat themselves as well as their partners.

 

With ASI Solutions, penetrating the Chinese market becomes easier.With our range of solutions from handling compliance, import, custom, labelling, logistics and financial flux, we will give you the necessary assets to perform on the Chinese market!

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ASI Solutions Joins OSCI Network

ASI Solutions is now part of the French OSCI (Opérateurs Spécialisés du Commerce International) business federation.

OSCI is representing 150 export consulting companies, and more than 2000 trading companies, that contribute to more than 120 billion Euros of export annually.

Companies belonging to OSCI are sharing a strong field expertise overseas and a culture of results that make them natural business partners. Their services are part of the general framework of the French support system for exports and provide SMEs with a unique approach to export. These operators are able to support, over time, companies on complex industrial projects in difficult countries and far from French production areas.

The membership of these operators in the OSCI guarantees their clients a professionalism recognized by proven references and a business ethic affirmed by signing a code of ethics.

The OSCI actively contributes to the promotion of its members through different actions: the OSCI manages the French collective agreement of import-export, inspires the initial training in International Trade, promotes indirect export, etc.

ASI Solutions, sharing the same values of OSCI, decided from this year on to be an active partner of this organization. Our teams are happy to contribute to the development of French companies’ internationalization, especially around China, Vietnam and Cambodia.

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ASI Solutions at SIAL Shanghai 2019

ASI Solutions’ team attended the 20th edition of SIAL Shanghai to introduce its global supply chain solutions for Food and Beverage products to existing and potential partners. .

From May 16th until May 19th 2019, Asia’s biggest trade show gathered 4,300 exhibitors, taking place at the Shanghai New International Expo Centre and covering the 17 Halls of the exhibition center. It attracted 117,595 professionals to see products from all around the world. SIAL Shanghai represents a unique benchmark of Food and Beverages in Asia . French, Italian, Russian products… Every country is represented under its national booth and shows its willingness to expand overseas.Among others, wine, meat, dairy and refined products were presented, as well as services such as retail and hospitality actors.

Many business meeting and insightful discussions have been shared with our partners. We were happy to meet you, especially for those who are not used to come to China and have been discovering this country and its market on this occasion. Thanks to SIAL, interesting new projects with strong potential were launched.

Selling your F&B products in China might be challenging, especially when one is unfamiliar with the process. With its 10-year experience in China, ASI Solutions is your ideal partner for expanding and managing your international operations. We cover every step, from origin to your final customer’s doorstep.

 

Discover our full range of solutions!

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Cosmetics in China – a Boom Generating Opportunities for Foreign Firms

In 2016, Cosmetic and Beauty care products became the first category of goods imported and distributed on Tmall Global, overwhelming Food and Fashion.[1]

What is then behind the success of Foreign cosmetics in China?And how to import them?

As your one-stop-shop partner on Chinese market, we will outline the prerequisite you need to know before importing this kind of goods into China.

The Growth of Chinese Demand: How and Why

There is a real boom around foreign cosmetics in China, encouraged by specific factors. The surge in cosmetic and body care demand relies on a larger pool of new consumers that recently appeared: the post-90 and 95 generation.

The Millennial girls, born between 1985 and 1995, have been the first consumers of cosmetic products. Within this category, the 25-35 are actually earning more than their elders, and are willing to spend more in general for lifestyle and care products.

The Chinese consumers care more and more about quality, and are aware that a higher quality will be reflected into higher price. They are already keen on foreign luxury brand and are used to obtain them when they are travelling abroad.
The next generation will probably raise concerns about ethical issues, such as animal testing and natural ingredients.

Male are now catching up with female consumers: the sales volume linked to male consumption doubles every year, especially on skincare products.
Moreover, the range of products is evolving, boosted by advertisement and the increasing recognition of male celebrities and key opinion leaders, affirming in their post their daily make-up routine. Some tutorials now exist, teaching how to use make up and look like famous singers and actors.

To boost domestic consumption and foreign brands in the Chinese market, the Chinese government has considerably cut import tariffs in 2018. The import tariff rates on cosmetics was, on average, considerably reduced. For related personal care, the tax rates fall from 6%, even 4% for some products. Perfumes are currently under a 3% import tax.

A Step-By-Step Guide to Import Cosmetics

First, you need to find a Chinese representative agent to start your business with an import license. This agent will be the importer and the legal entity responsible for product quality and safety. He is also the one accredited to apply to the different governmental agencies.

Then, you need to know that Chinese regulations divide cosmetics into two categories and this will influence the applicable Chinese standard and the next steps of the import process:

  • The “non-special use” category gather products that will be under a European definition tag as make-up and perfumes, but also skin care (such as anti-wrinkle or any other moisture cream), nail care and hair care;

  • The “special use” regroups products that deliver special and innovative treatment on your body. For instance, are included in this category hair dye, perm and growth, whitening, sun screen protection, deodorizing and spot removal.

If your product is classified as “special use” or contains an ingredient not imported yet in China, then you must apply for an hygiene license, delivered by the CFDA (The China Food and Drug Administration). Additional inspection and test must be done that will certainly influence your expected launching time on the Chinese market.

This application need to be made by your China representative agent. Testing should be made in one of the laboratory aggregated by the CFDA. Be aware that testing on animal are still mandatory for any cosmetics that are imported and sold on Chinese platform. Human safety tests are also mandatory for “special use” cosmetics.

A set of documents need to be compiled and presented for the application: list of ingredients, manufacturing process, evidence of use of the components and testing methods, certificates of quality standards, a certificate showing that the manufacturer is allowed to sell in the production country or country of origin, original and Chinese label and packaging as well as statement of undertaking on the no use of raw materials involving high risks substances. Within the following 4 months, the CFDA will deliver you the authorization to import your product in China.

Once you get the certificate, you will be able to start importing your product in China. The China Inspection and Quarantine bureau will inspect your goods. They may proceed randomly to some physio-chemical and microbiological tests on the shipment, checking the labelling as well, its format and content. If the shipment fails the routine inspection, goods will be destroyed. Compliance with the Chinese regulations is essential at every step, and your Chinese partner is here to guide you and avoid any slip-up.

With ASI Solutions, launching your product on the Chinese market becomes easier. With our comprehensive set of solutions, we handle compliance, import, custom clearance, labelling, logistics and financial flux on the behalf of our International customers. Strong of our 10-year experience on the Chinese market, we will give you all the necessary assets to perform on this market.

[1] According to a cowritten Deloitte, China Chamber of International Commerce, and AliResearch Institute report: “A gargantuan market with increasing openness” (October 31, 2018)

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Exports of Liquors to China: Conquering the Baijiu Country

Foreign liquors have gained in popularity in China, especially in the first-tier city, and compete more and more with the traditional Chinese baiju. Restaurants and supermarkets now provide a subsequent choice of foreign wines, craft beers or even scotch whiskeys. It is also more and more offered as a present, and the Chinese middle-class is looking for new flavors. If wines have made their path into the Chinese market, some other liquors such as vodka and whiskey are increasing in popularity.

ASI Solutions, as a specialist in the Food and Beverage importation, is an ideal partner on-site to start your spirit business in China. We present you today the specificities of the Chinese market and the import process of these kind of products.

More Insights on the Chinese Market for Liquors

Did you know that China was the first worldwide producer and consumer of beers?

This fact should not make you afraid! China is still an interesting market for beer producers. Although Chinese wine market might start to congest, it is not the case of the other kind of liquors of which few have experienced China yet. In fact, Chinese consumers are willing to consume more imported products, including imported beers. Reputation of imported beers has increased over the last years, when Chinese beers were impacted by scandal and copycat. Fake alcohol have been spreading in China, but nowadays Chinese consumers are looking for higher quality products. However, they are worrying about appearances, and care more about social status. Consuming imported alcohol is also perceived as a distinctive sign of wealth.

Traditional retail channels are through wholesalers and supermarkets, but online sales are not outdone. Nowadays all the retails chains are also operating via online stores, and safe solution to deliver bottles are available. More and more consumers are ordering online. China counts 610 millions of online shoppers in 2018, an increase of 14.4% compared to 2017 (CNNIC, 2019). Delivery services are now able to carry more and more atypical goods, such as frozen, or even fragile bottles. Regarding this growing potential, an e-commerce strategy should be thought of for any goods imported in China.

Importing Liquors Into China: the To-Do List

For any Food and Beverages, producers and exporters need to be registered on the Chinese customs' website http://ire.customs.gov.cn/. The General Administration of Quality Supervision, Inspection and Quarantine, who is in charge of the quality control and the inspection, will accept that you export your product to China after delivering you a certificate. Without this certification, Chinese customs is able to confiscate and dispose of your goods. In that so, feasibility check need to be done upstream, in order to verify the compliance of each ingredient with the Chinese market. Send your Original label and ingredient details with their origin to ASI Solutions and we will manage this procedure on your behalf. You may proceed to some testing in laboratory.

Building your branding is a pre-requirement. It might take some time, but it is essential for Chinese consumers to know your brand, and be aware of your story-telling and the quality you deliver in your products. It will be also easier for you to open an online store on the biggest e-commerce platform, such as Tmall, Taobao and JD. Some other channels are available for the smallest brand, but be aware that branding will influence positively your sales and will increase your chance to stay longer on the Chinese market.

ASI Solutions has built strong partnership with the best agencies in Shanghai, who will take care of your marketing operations and reputation. Starting with a suitable marketing strategy focusing and understanding the Chinese consumers will ensure you for long-term establishment on this market.

When Chinese consumers know your brand better, after having read some articles and good reviews or seeing some key opinions leaders testing your goods, they now want to taste your product! You are now ready to import.

Basically, liquors will follow similar process as food imports:

  • Certificate of health and phytosanitary are required and must be issued by the authority of the producer’s country.
  • In the case of liquors, some additional certificate are required by the Chinese customs and authorities: Bottling certification, Grape variety, Medal award, Beer wheat concentration… ASI Solutions drafts a case-by-case solution, and will send you the exhaustive list of documents needed for your import business in China
  • Last but not least, ASI Solutions will take care about the Chinese labelling, according to the Chinese regulations.
  • Packaging can also be done, and is really important in the case of liquors. Do not forget that Chinese consumers are used to offer liquors as a present, so they will pay a particular attention to the visual of the packaging.
  • When your bottles arrive in China mainland, you need to store We also can propose to store your liquors in our temperature controlled warehouse.

ASI Solutions will support you at each step of your business in China, and will take care of the project from its conception to delivery to the final consumer.

We used to handle more than 20 cases in Food & Beverages, and built our expertise to a 360 level. We will have a solution for you at each step of your supply chain and will consolidate your position on the Chinese market.

Discover our full range of solutions!

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Embargo Lifting for French Food

If you are a regular reader of French or Chinese newspapers, you may know that Xi Jinping was in France for a three-day state visit, late March 2019. It took place in the frame of his European tour, to secure and deepen European Union ties with China, as well as celebrating 55 years of France-PCC diplomatic relationship (established with Charles de Gaulle visiting Beijing). 14 trade deals were signed between French and Chinese enterprises, among which the resounding sale of 300 Airbus.

What one may not know however, is the content of the other trade deals signed. Some of them are directly concerning import regulations for French products, thus directly impacting French companies eager to develop their operations to China.

ASI Solutions, as foreign companies' best partner for handling their Chinese expansion, tells you more about it!

Embargo Lifting on French Poultry

Food safety is a great concern in China, and at the same time, demand for imported F&B is increasing. This embargo had been implemented since December 2015, after the avian flu plagued Europe.

The Embargo on beef meet was already lifted in August 2018, now it is turn to French poultry. France will be the second country, after Poland, to sign a new export protocol between the GACC and the French poultry industry.

The market is relatively modest in terms of volume: last time in 2015, France had exported for 3 570 tons of poultry meat for a total of 7 million of euros (Figures from FranceAgriMer). However these exports offered an appreciable complementary income for the industry, as it affected some pieces - such as frozen head, legs and wings of the chicken - that are really appreciated by Chinese consumers whereas less by European ones.

This agreement followed some audits made by Chinese inspectors on March 2018, when they visited hatcheries, slaughterhouses and sanitary control laboratory.

The export will resume as soon as the certified French companies for the export will individually receive the go.

And many more...

A protocol listing all the export conditions from France to China was signed during the visit. This protocol will open the Chinese market to all kind of French shellfish at once, when it was previously made case by case.

Notice that the Chinese delegation, during last March audit, have also visited a foie gras company, which is seen as a good omen for the producer and expat consumers in China.

Among these numerous agreements, noticed that a cooperative protocol between the French bank BNP Paribas, the French fund Eurazeo and China Investment Corporation sovereign wealth fund was signed. This agreement aims to encourage and support development of French companies in China, with an amount about 1 to 1,5 billion euros.

The French president announced that some cooperation will be made in countries involved in the New Silk Road, but France is not willing to participate in the infrastructure project.

Nonetheless, this visit offers promising business opportunities between French and Chinese companies and will certainly tighten their trade relations.

We will keep you updated on the project’s advancement.

ASI Solutions is always abreast regarding Chinese import and export regulations, and provides you with complete information on compliance and testing when it comes to Chinese import regulations and best practices. We provide you tailor-made solutions for your business to fully meet requirements of the Chinese market, and assist you in any challenges you may face in running your international operations.

Contact us for more information regarding regulations, shipment and commercialization of your goods in Mainland China.

Discover our full range of solutions!

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Before Exporting to China: a Two-Step Guide

Before even exporting to China, deal with the logistics part, design and implement your marketing & communication strategy, a company has to go through few but essential steps. Sometimes overlooked when exporting,  they however are detrimental to prepare thoroughly before even exporting.

As companies best partners for their internationalization process to China, ASI Solutions has put together a comprehensive summary on what one needs to know before going abroad. Being aware of these key steps is key to ensure a smooth export process.

Step 1: Make Sure Your Product Can Be Imported

China classifies products in 3 categories when it comes to them being imported within its borders: prohibited, restricted and permitted goods.

Apart from products whom prohibition is obvious (explosives, arms, articles coming from disease-stricken areas, etc.) some items considered as more common are also restricted.

Raw materials for plastic, polyester, raw materials for chemical fibers, cotton, and some steel products fall into this category. As restricted products, they require quotas and licenses.

As such, one has to check if the products to be imported are eligible according to Chinese legislation.

Step 2: Conform to Chinese GB Standards

It is then necessary to make sure that your product is in compliance with the GB standards (国标, Guóbiāo). These National Standards have been developed for technical requirements and serve as basis for testing products. Depending on their prefix code (GB, GB/T, GB/Z) they are identified as mandatory or voluntary. 85% of the standards are voluntary, however you are encouraged to follow them anyway as it can enhance the brand of your product.
Most of the GB Standards are derived from the ISO norms, however rules are stricter when it comes to products such as edible ones, cosmetics or have an impact on the safety.

What does this compliance with GB standards imply?

 

Testing

The process for ensuring that they meet the requirements often include testing (the testing applicable depending on the category the product itself falls into). Your product should then be sent to a certified laboratory located in China.

 

Labelling

Specific labelling requirements apply when it comes to importing a product into China and again, the latter depend on the category your product falls into.

  • For a food product to be imported, the label must be affixed on the original packaging. This label should be in Chinese and include information such as the production date, the expiry date, the country of origin and the nutritional value.

  • For a textile product, a Chinese version of the label sewed on the product should be added, with the washing instructions; as well as a Chinese version of the selling label with indicating the size and price.

How to Make Exporting to China Easy

Making sure that your product can be exported to China can be complex for companies which are not familiar with the process. Before even knowing if it will meet demand, you will need to invest not only money but also time and energy.

As such, having a local partner helping you navigating in the set of regulations and requirements is often the best solution. As companies' best partner for handling the export process, ASI Solutions provides you the support and expertise you need. Apart from logistics, we help ensure compliance and you manage the testing and labelling of your product. We also provide you with key insights and advices on the challenges you might face.

From origin to your final consumer's doorstep, we handle it all (including local warehousing and delivery). In the era of e-commerce, while the latter is booming in China, it is essential to be responsive, and efficient when internationalizing your operations.

Our aim is to facilitate your expansion for you to take full advantage of the opportunities Chinese market represents.

Discover our full range of solutions!

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Looking Back at Chinese Market Trends Which Shaped 2018

As 2018 has reached its end, and the year of the pig has officially begun, it is time now to have a look back on what trends have shaped Chinese market over the past year, and thus what its future is. China’s market is evolving fast, with the government actively taking part in driving it as to meet the objectives of the 13th Five-Year-Plan. At the same time, it is important for foreign brands to understand what makes the Middle Kingdom so particular, compared to Western societies.

ASI Solutions has been helping brands exporting to and importing from China for more than 10 years, thus developing a strong knowledge in the field. We make the internationalization of the firms easier, from origin to destination.

Where can foreign brands can find opportunities of development in China? And why is so? These are the questions ASI Solutions will answer in the following article.

Local Consumption

The main driver of China’s economic growth is its domestic consumption. According to EMIS Report, it contributed to 78.5% of the latter.

Why is so?

The government has decided to boost domestic consumption, encouraging retail trade development and, as we will explore in more depth later on, e-commerce in particular. This has been supported by measures such as standardization of the sector, ensuring healthy market operation and protect consumer rights. As China is switching from a manufacturing-based economy to a consumption-driven one, foreign companies are encouraged to take advantage of this new orientation.

Which consumers are the drivers of local consumption?

While big cities such as Shanghai or Beijing have been driving economic development for years, tier-two cities as well as rural areas are the new drivers of growth. The main element fostering this tendency is the development of e-commerce. Thanks to the latter, regions that were isolated now have access to a large panel of goods.

E-Commerce

For Chinese consumers, e-commerce is the easiest way access goods (wherever and whenever one wants). As such it fosters higher consumer spendings. It is indeed one of the main elements behind China’s retail sector’s growth.

China is implementing the « New Retail » model or as Jack Ma, Alibaba’s founder, puts it:

« E-commerce is rapidly evolving into New Retail. The boundary between offline and online commerce disappears as we focus on fulfilling the personalized needs of each customers. »

To sum it up, e-commerce is becoming more and more consumer-centric where personalization plays a key part.

O2O is gaining weight and is now strongly supported by chain retailers. It combines and offline strategies: online for the marketing and purchasing, offline for the distribution channels such as pick-ups, after-sales services and traditional purchasing. It goes beyond with integrating mobiles into the equation and one can now use the term m-commerce to designate mobile commerce

F&B Sector

Since 2011 China represents world’s greatest food and beverage market. The consumption itself changed as Chinese consumers are now demanding high quality products. Food safety has become one of government’s top priorities and population’s greatest concerns. Even though consumption of foreign food products is not outweighing the one of locals, it is believed that it will be world’s greatest consumer of imported products. The reason is that foreign products are believed to be more qualitative.

China is still a great importer (5th) and consumer (2nd) of Wine. Even though the market is more and more competitive, the demand is there, and indeed increasing.

Interested in exporting your product to China? At ASI Solutions, we offer you tailor-made offers, aimed at answering your needs. We are able to take care of the import process from origin to destination, we are a facilitator and your local partner at the same time.

Discover our full range of solutions!

 

 

This article is based on EMIS Insights - China Consumer Goods and Retail Sector Report 2018