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.
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.
It is a huge area of 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 opportunities. So it is important to do your research, segment the market and identify your point of entry.
