Argentine export sector eyes China’s middle-class boom

China’s emerging middle-class boom is on Argentina’s radar, said Enrique Mantilla, head of the Argentine Chamber of Exporters.

“Looking to 2040, there’s going to be an important change in China: a very significant growth in the Chinese middle class and its purchasing capacity,” the Xinhua News Agency reported, citing Mantilla.

“We estimate that as wages rise, employment opportunities increase and family incomes grow, what’s going to happen is that people are going to cook less at home and buy readymade products,” said Mantilla.

That’s where Argentina’s exporters hope to play a bigger role as suppliers, according to Mantilla.

“Over the next 20 years, it’s a cultural change that we have to keep in mind – selecting foods with a criteria based on health more than just pure pleasure,” he added.

To that end, Argentina and China are stepping up negotiations on opening up China’s consumer market to Argentine exports. Simply knowing the needs of Chinese consumers is not enough, Mantilla said, adding that the challenge is to find the channels through which “you distribute or gain buyers for your products.”

“China is very large. You have to... narrow down what you want to focus on, get to know the wholesale buyers, then get to know how to also reach the retail level,” said Mantilla.

Mantilla admitted that it is challenging to understand consumers’ needs while identifying the advantages of Argentina’s products.

However, the task is made easier since decision-makers in both the Argentine government and the private sector aim to strengthen trade ties with China, he said.