China: A Market Overview Humber Seafood Summit 2014

Transcription

1 China: A Market Overview Humber Seafood Summit 2014 Claire Urry, Executive Director China-Britain Business Council Add text here 18 September 2014

2 China-Britain Business Council (CBBC) helping UK companies do business with China Beijing Shenyang Range of practical services Delivery partner for UKTI in China Xi an Chengdu Wuhan Chongqing Changsha Guangzhou Shenzhen Qingdao Nanjing Shanghai Hangzhou CBBC 60 years history 120 bilingual staff Extensive networks C 1000 members

3 China Unprecedented Change Urbanisation & Consumerism Migration to Cities Rapid construction property price rises Regional differences (urban v rural) Lifestyle changes Emerging middle-class Extreme wealth (300K+ millionaires) SHANGHAI Top: 1990 Bottom: 2010

4 UK F&D Exports to China, Jan-Apr (Y0Y) Exports of Food and Non-alcoholic beverage exports increase 7.25% in Q1 Source: FDF

5 Top 10 UK F&D Exports to China, Jan-Apr (Y0Y) Source: HMRC/FDF

6 Consumers, trends and drivers Main consumer group under 40s high achievers cash rich, time poor, health conscious Increasingly knowledgeable with broadening tastes Growth in tourism Food safety concerns Key Drivers for Consumers Price Provenance Premium - Fresh Food Convenience potential for ready meals? On-line eg Yihaodian

7 Food Service Channels for Seafood Largest sector of seafood consumers Hotels and Restaurants Hotel sector rapid expansion full service restaurants - account for +70% of the entire sector (market value) Many restaurants buy from wholesale markets Larger chains use dedicated importers - Metro has a wholesale operation supplying restaurants and smaller retail outlets Institutional Food Service over 1m catering companies in China High end restaurants & caterers seen as market leaders so use of imported produce is spreading

8 China s Grocery Retail Market IGD Top 10 global markets 2013 Rank Country Grocery retail market (US$bn) 1 China USA India Russia Japan Brazil France Germany United Kingdom Indonesia Food & Beverage imports strong growth 2011 became largest market for grocery retail, surpassing USA 4 th largest global import market for food & beverage

9 Retail Channels for Imported Food & Drink Volume of Seafood sales growing through Hotel and Restaurant industry wholesalers eg Metro Hypermarkets - most imported food sales Speciality Supermarkets & Boutique Stores originally for expat market, now more Chinese clients Supermarkets dominated by domestic players Online worlds largest internet population

10 Leading retailers China s top grocery retailers Retailer China Resources Enterprise (1) Grocery sales 2013 (US$ m) % Change in grocery sales IGD grocery retail market share 2013 USD CNY Number of grocery stores , ,338 Sun Art (2) 13, Walmart (3) 12, Carrefour 6, Yonghui 4, Lianhua 4, ,596 NGS (Nonggongshang) (4) 4, ,644 Wumart 3, Lotte Shopping 2, SPAR China 1, Note: excludes Cash & Carry and Members Club operations (1) China Resources Enterprise figures include CRE and Tesco China (2) Sun Art figures include RT-Mart and Auchan China (3) Walmart China figures include Walmart China and Yihaodian (4) NGS figures include Nonggongshang, Kedi, Alldays and Wuyuan Source: IGD Datacentre IGD 2014

11 Getting your Product to Market Do thorough market research understand the market Brand protection China is a first to file market Attention to detail on all documentation CIQ officials / procedures arbitrary testing, variable interpretation of rules Find a good, experienced partner in China Chinese regulations 2012 AQSIQ exporter registration; CNCA Plant registration for fish / seafood products Export Health Certification

12 Regional development not one market Region Tier 1 cities Fast Developing Non-Tier 1 cities North Beijing Dalian, Qingdao, Shenyang, Tianjin East Shanghai Hangzhou, Ningbo, Zhengzhou, Suzhou West Chengdu Chongqing, Xi an, Changsha, Wuhan South Guangzhou Shenzhen, Fuzhou, Xiamen West China -Coverage: Chongqing, Gansu, Guizhou, Hubei, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, Yunnan -Population: 26% of national total - Consumer goods retail sales of national total: 18% South China -Coverage: Fujian, Hainan, Guangdong, Guangxi, Jiangxi, Hunan - Population: 24% of national total - Consumer goods retail sales of national total: 22.5% Source: China Statistical Yearbook 2013 Chengdu Chongqing Guangzhou Beijing Nanjing Shenzhen Hangzhou Shanghai North China -Coverage: Beijing, Tianjin, Hebei, Heilongjiang, Inner Mongolia, Jilin, Liaoning, Shandong, Shanxi -Population: 28% of national total - Consumer goods retail sales of national total: 32.9% East China - Coverage: Shanghai, Anhui, Henan, Jiangsu, Zhejiang - Population: 22% of national total - Consumer goods retail sales of national total: 26.6% Source: IGD

13 Chart adapted from udda fas Distribution Channels in China UK Producer/Manufacturer UK Exporter / Consolidator Licensed Importer Logistics Agent Importer / General Distributor Wholesaler Repacker / Distributor Hypermarket Purchasing Centre Secondary Distributor Secondary Distributor Wet Markets Local Stores Local Distributor Convenience Chains Supermarkets Hypermarkets

14 Plant Registration with CNCA Since May 2013 all companies must register Administered principally in UK by Animal Health & Veterinary Laboratory Agency (AHVLA) in Carlisle, also DARD Details required include full address for all facilities included in the production process processing plants, transportation vessels, cold stores etc. Forms are collated and submitted once every 3 months in accordance with Chinese requirements Export Health Certification (EHC) All seafood exports (live and non-live) require an EHC completed by local authority environmental health officer, food safety officers and official vets acting on behalf of HMG

15 Registering as an Exporter with AQSIQ Online process one off registration no fee Information required company address, contact person and contact information PLUS same information in Chinese for importer(s) in China Process cannot be completed without full data set Successful registration provides: a) Registration Number b) Query Number your individual password Chinese importer/distributor needs registration number for customs clearance Keep numbers safe required to update / amend your file! CBBC Service to conduct registration process: Free for CBBC corporate members, VAT for non-members

16 Chinese Business Culture Entertaining a key part of doing business At a banquet, turning over the fish can symbolise bad luck Be prepared, know your bottom line - Never throw a fish into a pot of hot water. The fish will jump out and cannot be cooked. Instead, put it into cool water, so it s comfortable and won t suspect what you have in mind. Very slowly, turn up the heat, just a little at a time, so the fish doesn t notice it s getting hotter. Keep the fish relaxed and happy and before he knows it, he s cooked. CBBC Business Etiquette courses visit

17 CBBC Contact details Food and Drink Sector Leads Claire Urry (UK) Holly Chen (China- Beijing)