Page 36 - Food&Drink September 2019

FOOD EXPORT
With more than 300 million middle-class consumers, China offers unique opportunities for Australian food and beverage manufacturers. Export consultant David Thomas provides five tips for companies looking to tap into the market.
One Country, Many Markets: Five tips on exporting to China
FOLLOW THE MONEY
There is an addressable market of well over 300 million Chinese middle-class consumers with money in their pockets, aspiration in their hearts, and a willingness to spend their money on high quality premium food and beverages.
In addition, China’s millennials (those born between 1981 and 1996) are one of the richest and largest spending groups in the world. There are more than 350 million Chinese millennials – around 25 per cent of China’s population – and they are the main drivers of the country’s surge in consumption. Spending by those under the age of 35 accounts for 65 per cent of total consumption growth. This is projected to increase by 11 per cent annually until 2021.
The Chinese already place a high value on Australian products. Our country is highly regarded in China for our quality produce, clean environment and well regulated manufacturing sector.
It makes sense for Australian businesses to capitalise on this fast growing market, identify the type of products which appeal to Chinese consumers and start targeting the millennials.
Itisahugeareaof opportunity and we need to see
a shift in thinking in Australian businesses, more curiosity and an improved understanding of the extraordinary opportunities available in China.
START LOCAL, THINK GLOBAL
The message to SME business owners and leaders is clear.
If you want to do business in China, do not think of it as ‘one market’. It is ‘many markets’, each with different characteristics (industry clusters, language, dialect, customs and even local food) and suitable for different
adapting your offer to their unique circumstances, tastes and preferences.
THE MONEY & MARKET
Chinese investors are now trawling the world looking for opportunities to invest in the food supply chain, starting at the source (farms and land), moving to the soft commodities (e.g. meat, vegetables, fruit and wheat) and then finally to food processing (abattoirs, packers, canneries etc.) so that they become active players in the global food supply chain. This was entirely predictable due to
throughout Asia and other emerging countries who will increasingly rely on China for investment, connections, knowledge and access to a market of over 1.3 billion people.
INBOUND BEFORE OUTBOUND
The biggest opportunity for food exporters is inbound, i.e. the large numbers of Chinese locals, migrants, tourists, investors, students and entrepreneurs who come here every year and buy Australian (and other) products in our local shopping malls and grocery outlets.
These numbers are growing rapidly, which enables retailers in the food and beverage industry to take advantage of cashed-up Chinese buyers without leaving home.
If you need any convincing of the short-term opportunity to build a business case to promote your capabilities, services or products to just one sub-segment of this massive group (i.e. the Chinese who already live in Australia), you can get motivated by plugging the following numbers into your spreadsheet:
• Locals: the 1,213,903 Australian Chinese (5.6% of the population);
• Migrants: 28,000 a year,
36 | Food&Drink business | September 2019 | www.foodanddrinkbusiness.com.au
“ China’s millennials are one of the richest and largest spending groups in the world and they are the main drivers of the country’s surge in consumption. ”
opportunities. So it is important to do your research, segment the market and identify your point of entry.
The smaller the target the higher chance of success!
It also requires some creative thinking about how you can delight and attract new customers by rolling out the metaphorical ‘welcome sign’ in their own language and
the strategic priorities set out in the past five years plans.
China provides unique and once-in-a-lifetime opportunities for SME owners and leaders, particularly leading players in the F&B sector, to partner with Chinese investors and partners to commercialise their business in China, transform their companies into major global players, then moving