Affluent local customers a major attraction to overseas corporations
China’s consumer goods market, fueled by government policy packages to stimulate spending and residents’ upgraded consumption habits, maintains appeal among French businesses as they seek to capitalize on the growth opportunities offered by the country, said market watchers and business leaders.
China has experienced a remarkable acceleration in its consumption upgrades, with both traditional and emerging sectors demonstrating rapid growth.
This trend has solidified the fundamental role of consumption in boosting economic growth, said Bai Ming, deputy director of international market research at the Chinese Academy of International Trade and Economic Cooperation in Beijing.
According to Zhao Ping, vicedean of the Beijing-based Academy of China Council for the Promotion of International Trade, China’s economic growth presents a positive outlook, providing fresh growth prospects for multinational corporations, especially in the consumer goods industry.
Driven by China’s offshore dutyfree shopping policies in Hainan province and soaring demand for premium and diversified alcohol products, Remy Cointreau Group, the French spirits company, is to introduce more products and expand its sales in duty-free channels.
With a growing high-income population with increasingly discerning tastes, China’s rising consumption of spirits like cognac and whiskey will push multinational corporations like Remy Cointreau to invest more in this market to meet local demand, said Sophie Phe, CEO of Remy Cointreau China.
Speaking during the third China International Consumer Products Expo held in Haikou, Hainan province, in mid-April, Phe said Remy Cointreau, a three-time CICPE participant, showcased a range of products, including champagne, Scotch whisky, gin and cognac.
To meet the demand for single malt whisky, the company recently released two new whiskies — Octomore 13.1 and Black Art 10.1 — from its distillery on the island of Islay, Scotland, in the Chinese market.
The executive said that China’s international exhibitions, such as the CICPE and the China International Import Expo, are key platforms for foreign companies like Remy Cointreau to promote sales and brand awareness.
“They represent a fantastic opportunity to showcase our products to the Chinese consumers, to share our core values with consumers, as well as demonstrating our long-term commitment to the China market,” said Phe.
She added that the CICPE and the Hainan Free Trade Port will play a vital role in the global travel retail sector and amplify the consumer journey, serving as a window into China as they contribute to its dualcirculation development paradigm.
Under the dual-circulation model, the domestic market is the mainstay while the domestic and foreign markets reinforce each other.
“With the future investments in Hainan, we believe this market will continue to grow and attract more clients,” she said.
“Therefore, Remy Cointreau will continue to develop its activities and in particular its retail footprint.”
In addition to opening two boutique stores in Haikou in 2021 and this year, respectively, the company has invested in areas such as premium services, including exclusive high-end dinners with clients and customized gifting rituals, as well as online sales channels and sustainable development to retain robust growth in China.
French cosmetic products giant L’Oreal Group signed a contract with China’s e-commerce behemoth Alibaba Group to highlight the circular economy and promote sustainable development.
It also rolled out a project that aims to support and incubates hightech startups in China.
Jean-Paul Agon, L’Oreal’s chairman, said that such an opportunity is vital as it brings the best French and Chinese companies together for better collaboration and cooperation.
Despite challenges such as waning global demand and rising global trade protectionism in recent years, France is China’s third-largest trading partner and the third-largest source of actual investment within the European Union.
China is France’s largest trading partner in Asia, according to information released by China’s Ministry of Commerce and Ministry of Foreign Affairs.