Jun. 21 – There is on-going shift in China fruit & vegetable market strategy, China fruit sector key players began to renew it focus, main emphasis on three areas – branding, standardization, internationalization. With the current shifting of demand and supply in China fruit & vegetable market, changes take place in key approaches as China to remain key market for fruit & vegetable in 2017.
China fruit & vegetable market renewed focus – Branding
Branding is a key for standing out from the crowd in the China fruit & vegetable market, in 2016 China fruit & vegetable market indicated that more and more key players in the fruit industry were spending more time, energy creating and building brands. The heavy efforts spend on name branding in various methods, besides publicizing the special area of production, such as apples from Yantai (in Shandong Province), or navel oranges from Jinan (also of Shandong) etc., the players have begun creating brand names to trigger images related to the premium quality of different fruit varieties. Other example, Joy Wing Mau Group teamed up with Haisheng Group (both groups are engaged in growing, processing and marketing of fresh fruits) to launch a greenhouse strawberry with a unique brand name. Moreover, a newly established industry association for high quality fruits joined forces with Pagoda and created a brand called “One Good Orange”. The former was said to be planning to create 20 local fresh fruit brands over the next 5 years.
China fruit & vegetable market renewed focus – Standardization
With China to remain key market for fruit & vegetable in 2017, standardized production may be the first step towards creating brands. Standardization in production and brand building are seen as crucial for developing export markets. Statistics provided by China Chamber of Commerce of Foodstuffs and Native Products (Fresh Fruits Branch), showed that, between January and October 2016, China exported 986,000 tons of apples at a total value of USD1.11 billion, registering increases of 67% and 49% for volume and value respectively. Apples from Luo Chuan, in Shaanxi Province, characterized the current developments. Using standardized growing methods that ensure consistent taste and zero pesticide residue, couple with a focus in marketing, Luo Chuan apples successfully opened up the Australian market. In the first 11 months of 2016, China exported USD13.3 billion worth of vegetables, 12.4% increase versus same period year-ago. During the same period, export of fresh fruits amounted to USD6.2 billion, with a growth of 5.7%.
China fruit & vegetable market renewed focus – Internationalization
Besides focus on branding and standardization, some industry key players have gone even further in internationalization, which to engage in commercial merger and acquisition as well as forming strategic alliances. For instance, in 2016, Chinese company – Joy Wing Mou completed the acquisition of 19.9% share of New Zealand’s major fruit company in September, Turners &Growers Ltd, for NZD72.2 million, to become the latter’s second largest shareholder. In the same year, in October, Yiguo entered into an agreement to acquire 51% share of Singapore’s SunMoon Food Company Limited for USD24 million. There is a rising demand for variety of imported fruits and vegetables in China market, Apart from volume and value increases, China has been importing more varieties from more countries. To date, 52 kinds of fruits from 43 countries have already obtained China’s permission to import.
In the upcoming 2017 growing season, it’s cannot be ignored the importance of China as key market for fruit and vegetable exporters. In 2017 and beyond, demand and supply in China fruit & vegetable market will present more opportunities for exporters, dealers and traders, there will be more countries and more products may expect to be allowed to export to China. Dutch paprika/pears, German apple, New Zealand’s avocado, Australian blueberry, Brazilian melon and Mexican bananas are actively with applying for permission to import to China, demand and supply of fruit & vegetable market broader range of products, China to remain key market for fruit & vegetable in 2017 and beyond. For the List of Chinese Importers for Fruit & Vegetable available upon request, please contact with DCCC, or email to: email@example.com