As the standard of living of the Chinese considerably changed during those last years, they tend to spend their income differently than before. Today, they can afford to buy products of much better quality. This is particularly the case in their food choices. Their new purchasing power gives them a new and more varied demand. Since China has become largely open to the Western world, people’s interest in our products is growing. On one hand, because our products are considered of better quality, but also because the food scandals have been quite repetitive in the country. It thus totally broke the confidence of the inhabitants towards the Chinese products. Even though imported products are more expensive, more and more households are willing to pay more to feel secure when feeding their families.
Juices in China: what do the Chinese think?
Fruit and vegetable sales reach billions of dollars every year in China. Their juice consumption fluctuates around 15 liters per year per person. This may seem relatively small in comparison with some other nationalities (3 times less than Americans) and it is also under the global average. However, with 1.5 billion inhabitants, China remains a very interesting market. Most residents are drinking juice at least once a week. In addition, thanks to the increase of their purchasing power, their consumption is rising every year!
Orange juice is the dominant product in this market. However, its share is declining because Chinese consumers are getting more and more interested in original and exotic flavors, such as pomegranate, grapes, or carrots. They are also particularly interested in mixtures of fruits or vegetables, or both mixed. “Smoothies” style drinks are all the rage because they like the flavor mix and look for the nutrients of each component.
If you want to conquer the Chinese market of fruit and vegetable juices then you need to have a very effective entry strategy. Indeed, this market is very competitive in China. Many national companies are well established in the market. However, these are far from having the same taste as Western products.
They also experience some production difficulties. First of all from the lack of arable land. Although China is one of the biggest countries in the world, its territory is not perfectly adapted. It is therefore hard to satisfy the immense demand caused by the largest population in the world! China has had to buy land in Africa and America to fill this gap. But also because their agriculture is not mechanized enough and it penalizes them strongly to have an optimal yield.
These difficulties encountered by China prove that Westerners also have their place in this market! This is what Coca-Cola has demonstrated with its Minute Maid brand, which has become a leader in the Chinese juice market.
How to conquer this market?
- Adapt yourself to the consumers
To succeed in China the key is to adapt yourself to them. Although this country has largely developed, the desires and needs of the Chinese remain relatively different. We must always know the consumers to hope to seduce them. To find out what fruits they like, which vegetables, which combinations, what dosage of sugar, and so on.
- Reassure the consumers: E-Reputation
The Chinese always need to trust a product before consuming it. So we’ll have to reassure them! The information should be clear, including the origin of the product and the intake of vitamins (this is very important for them). If you are an organic brand, it’s even better! Organic is becoming more and more popular in China. As they feel reassured by the quality of your product, it can be easier to distinguish yourself from competitors.
- Catch the eye
The rays in China are so varied, with the packaging of all shapes and all kinds. It is, therefore, necessary to know how to stand out with pretty packaging. In addition, since Western products will be sold more expensive than Chinese products, it is necessary to justify this difference in price and give them the impression of consuming a luxury product.
- Take care of your relationships
It can be complicated for some to do business with Chinese people. It is important to know that they are above all looking for a relationship of trust. Doing business with a Chinese may take time, but once you have found common ground, that relationship will be long-term. So you need to meet your suppliers regularly and maintain this relationship.
If you need help with your implementation in China, Gentlemen Marketing Agency can offer you professional digital marketing communication. Do not hesitate to contact us!
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