Asia Fruit Logistica 2016 generic pic

Asia is the largest continent on the planet, with a population that is set to grow to 4.3 billion by 2022, so there is no doubt that it will continue to provide exciting and potentially lucrative opportunities for international growers and exporters alike.

Historically, China has been the obvious choice for many within the south-east Asian block, due to its emerging demand, growing population and increasing middle-class segment.

But there are other emerging markets that should be given equal consideration by exporters. For example, India, Indonesia, the Philippines and Vietnam are all showing promising growth.

In addition, India, Japan and Indonesia also feature alongside China in the top-ten global leading grocery markets, so there are lots of prospects that exporters can capitalise on.

Although these opportunities are abundant, these markets do come with their challenges. Ensuring that thorough market insight and prioritisation has been conducted, to understand consumer trends, market access and local trading relationships, should always be the first step for exporters.

Consumer trends

Food safety is one of the biggest concerns for Asian consumers, particularly in China. Improvements are being made to domestically grown products, however consumers continue to have a general concern over the safety of produce, particularly pesticide use in fruit.

This provides huge opportunities for western exporters, as consumers have the perception that this produce is grown with stricter food safety regulations. By drawing on the country of origin, the taste of the produce, packaging, and the levels of food safety measures observed by European growers, it gives international exporters a more unique and appealing offering for retailers.

Quality is also a big driver in the purchasing decision of fresh produce. For example, Chinese consumers are demanding, and are willing to pay for high-quality products. This favours imported produce, which is perceived to be of higher quality than domestic products.

Sensory evaluation is a big marker for quality, and it’s therefore vital that producers don’t see the Asian regions as ‘Class II’ markets. The Chinese market is a Class I market, and appearance is an extremely important factor in the purchasing decision.

It’s important to note that individual countries will all have their own preferences on appearance. But, if you’re looking to target China then larger fruits are preferred, and red colours are favoured over green, particularly if aiming for the growing gifting market.

Variety is another area for consideration. Consumers are always looking to try new and unique products, particularly if they’re linked to a westernised country or culture. For this reason, exporters should be looking to tap into this and consider how they can introduce new varieties to their offering.

Routes to market

Once you understand the consumer trends, and identify which markets are right for your product, it’s important to understand the routes to market, and potential barriers to export.

Although there are similarities, every region is different, so a blanket approach to exports will typically result in an unsuccessful campaign. It’s therefore important to immerse yourself in the region and understand the market access to give yourself a far higher chance of succeeding.

For example, around 70 per cent of all imported fruit sold in China is located in the Guangzhou-Guangdong Province, which is strategically located near to Hong Kong and allows access to 17.8 million customers, so exporters should look for partners based in this area.

These trading relationships are key, particularly in countries where the government can take a protectionist view to imports. Understanding these potential constraints and exploring options to overcome these before you construct your export plan is essential. Developing strategic relationships also allows exporters to glean information that can help fulfil a successful launch.

Domestic importers, traders and wholesalers understand their consumers fully. They know what works and what doesn’t, and can provide useful insight regarding the potential launch of a product and its likely success. Develop and utilise this knowledge as much as you can.

In summary, although international growers and exporters will face challenges when considering new Asian markets, there are lucrative opportunities available. By conducting thorough research and bespoke prioritisation you can ensure that you target the right market for your product.

TOP TIPS FOR EXPORT SUCCESS

• Use bespoke prioritisation – understand what the right market for your product is, and who the right partner may be

• Visit the market – understand your potential customers and evaluate if they’re right for your product

• Understand your own operation – are you able to provide the product at the right price, quality and volume, and are you prepared to meet demand?

• Organise trade missions – Asian markets are very willing to try new products, but they may need encouragement. Trade missions to build awareness of the varieties, tastes, quality and seasonality are important

• Efficiency is key – Asian countries are big producers of fresh fruit. Ensuring that you are able to compete with domestic producers is all related to your efficiency and should be given significant consideration before entering a market