In­no­va­tion en­hances food sales

China Daily (Canada) - - HOLIDAY -

Con­sump­tion gets a big boost from chang­ing con­sumer pref­er­ences

high-qual­ity or­ganic ce­real from Kaza­khstan and has priced their prod­ucts at the top end of the seg­ment. The com­pany re­ported a 70.97 per­cent growth in an­nual net profit.

In the white liquor sec­tor, the se­cond tier of high-end brands is ex­pected to see rapid sales dur­ing the fourth quar­ter, fol­low­ing on from the solid per­for­mance dur­ing the third quar­ter, ac­cord­ing to a re­port from Founder Se­cu­ri­ties.

Food sales have also risen ex­po­nen­tially due to the growth in on­line shop­ping. Ac­cord­ing to the China Brand Rel­e­vance Index from re­search firm Prophet, in­no­va­tion, rather than price and value, is fu­el­ing the growth of do­mes­tic Chi­nese brands.

Such state­ments come at a time when the coun­try is see­ing slower growth in retail sales de­spite a boom in off­take of fast-mov­ing con­sumer goods like in­stant noo­dles.

Con­trary to re­ports of a “con­sump­tion down­grade” in China, Zhao said the coun­try is see­ing an up­grade in con­sump­tion as con­sumers fo­cus more on food qual­ity and shift some their ex­penses on other sec­tors like travel, en­ter­tain­ment and ed­u­ca­tion.

“It is not as if Chi­nese con­sumers are shift­ing to cheaper food sub­sti­tutes, be­cause only the high-end in­stant noo­dles saw faster growth re­cently, while sales for tra­di­tional play­ers more or less re­mained stag­nant. As a re­sult, more food com­pa­nies are re­vi­tal­iz­ing their prod­uct port­fo­lios to at­tract more con­sumers,” Zhao said.

Xin­jiang-based Ke­men Noo­dle Man­u­fac­tur­ing Co Ltd’s lo­cal branch, for in­stance, now im­ports ce­re­als from over­seas like Kaza­khstan, as their ce­re­als are bet­ter in qual­ity and lower in price, com­pared with other ce­real pro­duc­ers.

Wei Yu­jun, deputy gen­eral man­ager of Xin­jiang-based Kem­ing, said the com­pany is in­creas­ing its qual­ity fo­cus to cater to the higher de­mand from con­sumers.

The com­pany also enjoys pol­icy sup­port from the lo­cal gov­ern­ment, said Wei, adding that its lo­gis­tics costs have fallen by 30 per­cent, while im­port quota has ex­panded from 4,000 met­ric tons to over 60,000 tons.

“A well-de­vel­oped lo­gis­tics net­work will be the next ma­jor con­cern for the com­pany, as we want to ship our prod­ucts faster to re­tail­ers across the coun­try with lower costs,” Wei said.

Con­sumer de­mand for food qual­ity has also fa­cil­i­tated the de­vel­op­ment of cer­tain in­dus­tries.

Farm­ers from Woymok vil­lage in Xin­jiang Uygur au­ton­o­mous re­gion are us­ing e-com­merce to ex­pand their mar­ket of sell­ing or­ganic Chi­nese Hami melon. About 50 fam­i­lies now sell their mel­ons on­line and have been re­ceiv­ing help from an e-com­merce ser­vice cen­ter set up by the lo­cal gov­ern­ment.

Sweeter than or­di­nary Hami melon, their prod­ucts are wel­comed by con­sumers from do­mes­tic and abroad. The vil­lage has also be­came a hot travel des­ti­na­tion and at­tracts 350,000 tourists every year.

“Many tourists have lit­tle ac­cess to fresh and high-qual­ity Hami mel­ons, and they im­me­di­ately love our prod­ucts com­pared with what they nor­mally eat,” said Wei Fuxin, a Hami melon seller at Woymok.

“Since sev­eral vis­i­tors wanted us to ship the Hami mel­ons to their fam­i­lies and friends, we came up with the idea of set­ting up an e-com­merce ser­vice cen­ter which has been op­er­at­ing well,” said Liu Jun, the vil­lage’s Party sec­re­tary.

Chi­nese con­sumers’ de­mand for food that is less com­monly seen on the ta­ble has also opened a mar­ket for over­seas prod­ucts that are yet to be branded in the lo­cal mar­ket.

Ka­marud­din Ah­mad, a sales man­ager at SL Virtue San Bud (WHAT OR WHERE IS THIS?), brought about 14,000 items of food to the 15th China-ASEAN Expo which was held in Nan­ning of South China’s Guangxi Zhuang au­ton­o­mous re­gion.

“When we brought our prod­ucts, es­pe­cially the durian cof­fee, we could see that the Chi­nese con­sumers are very in­ter­ested. I have been here for three years and I have a lot of cus­tomers who come back to buy our prod­ucts,” said Ah­mad.

Ah­mad also said their com­pany had set up a stor­age in Guangzhou, cap­i­tal city of South China’s Guang­dong prov­ince to keep their prod­ucts, as their Chi­nese cus­tomers re­quire on­line or­ders on a reg­u­lar ba­sis.

We are seek­ing for a Chi­nese part­ner right now, as the com­pany is ex­pand­ing the busi­ness and we are quite pos­i­tive about the mar­ket prospects, Ah­mad said.

LI HUA / XIN­HUA

A farmer in the Xin­jiang Uygur au­ton­o­mous re­gion har­vests Hami mel­ons in June this year.

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